Oops! made an error in ITR filing? Fear not, say experts

As the deadline for tax-filing comes close, even the savviest taxpayers might find themselves in a tax-time tangle. From misplaced bank digits to elusive deductions and incorrect reporting of interest income, hurry in filing can lead to errors. Amidst tax slip-ups, tax experts recommend considering an extended lifeline by the IT department which allows taxpayers to rectify errors in their ITR through revised filings.

"Under Section 139(5) of the Income-tax Act, 1961, taxpayers have the opportunity to file a revised ITR in case they discover any omission or wrong statement in their initial submission. This crucial escape hatch comes as a welcome relief for those who fear facing repercussions due to inaccuracies in their tax returns," said Amit Gupta, MD, SAG Infotech.

Taxpayers must act promptly to avail themselves of this opportunity. The revised return can be submitted by December 31, 2023, for FY 2022-23 (AY 2023-24). By seizing this window of opportunity, taxpayers can avoid unnecessary audits and legal hassles.
The revised ITR provision is open to all taxpayers, irrespective of whether they filed their original ITR before or after the deadline. 

July 31 is the deadline for filing income tax returns | Image credit: Pexels

Benefits and risks of revised returns

"This provision brings relief not just for first-time filers but also for those who have already submitted revised returns. There is no limit on the number of revised returns a taxpayer can file. However, it is imperative to provide complete details of the original ITR every time a revised return is submitted," said Arpit Suri, CA and personal finance expert.

"While taxpayers may find solace in this second chance, they are urged to exercise caution and use the revised ITR option responsibly. This facility is meant for legitimate corrections, and any misuse may invite penalties and legal consequences. It is crucial for taxpayers to diligently file the original tax return to avoid the need for repeated revisions," Suri added.

"The revised ITR provision can be considered a lifeline towards promoting tax compliance. It instils a sense of trust in the system, allowing individuals to correct honest mistakes without undue fear of punitive actions. However, taxpayers must not misconstrue this provision as an excuse for laxity in their initial filings. Precision and accuracy during the primary submission remain paramount. The revised ITR should be viewed as a safety net, not a crutch," Gupta emphasised.