ITR FAQs answered: How many times can you revise your income tax return?

The deadline for filing your income tax return is approaching. It is crucial to file your ITR correctly, otherwise, it may have several financial implications. Though the assessee can file returns after the due date of July 31, the late filing fees would be either Rs 5000 or Rs 1000 until December 31, depending on your income level. Moreover, an  interest will be levied at 1%  per month. till the date of filing of the returns.

Here are some important FAQs you should be aware of

How to file the return of income electronically?

​​​​Income-tax Department has established an independent portal for e-filing of return of income. The taxpayers can log on to https://www.incometax.gov.in/iec/foportal for e-filing the return of income.​ Click here to view the step by step procedure to file Income-tax return online.

What is e-filing utility provided by the Income-tax Department?

 

​The Income-tax Department has provided free e-filing utility (i.e., Java & excel) to generate e-return and furnishing of return electronically.  By using the e-filing utility, the taxpayers can easily file their returns of income. Utility can be downloaded from https://www.incometax.gov.in/iec/foportal

What is the difference between e-filing and e-payment?

​​​E-payment is the process of electronic payment of tax (i.e., by net banking or SBI’s debit/credit card) and e-filing is the process of electronically furnishing of return of income.

Is it necessary to file return of income when I do not have any positive income?

​​If you have sustained a loss in the financial year, which you propose to carry forward to the subsequent year for adjustment against subsequent year(s) positive income, you must make a claim of loss by filing your return before the due date. ​​

Can a return be filed after the due date?

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Return of income which has not been furnished on or before the due date  is called belated return.  Any person who has not furnished a return of income within the time period allowed under section 139(1) or within the time period allowed under a notice issued under section 142(1), may furnish return for any previous year :

- at any time 3 months before the end of the relevant assessment year or before completion of the assessment, whichever is earlier.                   
  

However, a belated return attracts late filing fees under section 234F. 

As per section 234F, late filing fees of Rs.5,000 shall be payable if return furnished after due date specified under section 139(1). However amount of late filing fees to be paid shall be Rs.1,000, if the total income of the person does not exceed Rs.5 lakh.

Can a return of income be filed after the expiry of due date to file belated return?

​The Finance Act 2022, has inserted subsection (8A) in section 139 to enable the filing of an updated return. The section provides that an updated return can be filed by any person irrespective of the fact whether such person has already filed the original, belated or revised return for the relevant assessment year or not (subject to certain conditions).

An updated return can be filed at any time within 24 months from the end of the relevant assessment year.

If I have paid excess tax how will it be refunded to me?

​​​​​The excess tax can be claimed as refund by filing your Income-tax return. It will be refunded to you by crediting it in your bank account through ECS transfer. 

If I have committed any mistake in my original return, am I permitted to file a revised return to correct the mistake?

​A return of income can be revised at any time 3 months before the end of the assessment year or before the assessment whichever is earlier.

How many times can I revise the return?

​​​​If a person after furnishing the return finds any mistake, omission or any wrong statement, then return should be revised within prescribed time limit.
 

A return can be revised at any time 3 months before the end of the Assessment Year or before the completion of the assessment; whichever is earlier.

If original return has filed in paper format or manually, then technically it cannot be revised by online mode or electronically. ​​​

Will I be penalized on late filing of ITR even if I am not liable to file it?

​​​​​No, late filing fee under section 234F not leviable in case you are not required to file ITR as per section 139 but filing it voluntary though after the due date.

If I fail to furnish my return within the due date, will I be fined or penalized?

​​As per section 234F, late filing fees of Rs. 5,000 shall be payable if return furnished after due date. However amount of late filing fees to be paid shall be Rs.1,000, if the total income of the person does not exceed Rs 5 lakh.

Am I liable for any criminal prosecution [arrest/imprisonment, etc.] if I don’t file my Income-tax return, even though my income is taxable?

​Non-payment of tax attracts interests, penalty and prosecution. The prosecution can lead to rigorous imprisonment from 3 months to 2 years (when the tax sought to be evaded exceeds Rs. 25,00,000 the punishment could be 6 months to 7 years).​​

What precautions should be taken while filing the return of income?

​​​​​​​​​The followings are the important steps/points/precautions to be kept in mind while filing the return of income:

1)  The first and foremost precaution is to file the return of income on or before the due date. Taxpayers should avoid the practice of filing belated return. Following are the consequences of delay in filing the return of income/ Loss (other than house property loss):

a.        Losses cannot be carried forward.

b.        Levy of interest under section 234A.

c.        Late filing fees under section 234F is levied for return filed after due date. Late filing fee of Rs. 5,000 shall be payable if return furnished after due date. However amount of late filing fees to be paid shall be Rs. 1,000, if total income does not exceed Rs. 5 Lakh.

d.        Exemptions under section 10A​, section 10B, are not available.

e.        Deduction under 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE, are not available.

f.        Deduction under 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB are not available. (From A.Y 2018-19)

2)    Taxpayer should download Form 26AS and should confirm actual TDS/TCS/Tax paid. If any discrepancy is observed then suitable action should be taken to reconcile it.

3)    Compile and carefully study the documents to be used while filing the return of income like bank statement/passbook, interest certificate, investment proofs for which deductions is to be claimed, books of account and balance sheet and P&L A/c (if applicable), etc.

4)    No documents are to be attached along with the return of income. The taxpayer should identify the correct return form applicable in his case. Carefully provide all the information in the return form. Confirm the calculation of total income, deductions (if any), interest (if any), tax liability/refund, etc.

5)    Ensure that other details like PAN, address, e-mail address, bank account details, etc., are correct.

6)     After filling all the details in the return of income and after confirmation of all the details, one can proceed with filing the return of income. In case return is filed electronically without digital signature and without electronic verification code do not forget to post the acknowledgement​ of filing the return of income at CPC Bangalore within 120 days of filing return of income.

7) Taxpayer should check the Annual Information Statement (AIS) after login to e-filing account. AIS provides the information about the prepaid taxes and prescribed financial transactions entered into by the assessee during the relevant previous year. 8)     For details on e-filing please log on to https://www.incometax.gov.in/iec/foportal ​​