The deadline to file your income tax return (ITR) for the financial year 2023-24 was July 31, 2024, for individuals not liable for tax audit. If you’ve already submitted your income tax return by July 31, 2024, but later discover any errors or omissions, or realize that you failed to disclose income that could result in higher taxes, there’s no need to panic. You have the option to file a revised return to correct any mistakes and settle any additional tax with applicable interest.
“The Income Tax Department allows you to correct mistakes through a revised ITR, even after the deadline has passed. You can file a revised return by 31 December of the relevant assessment year or before the completion of the assessment, whichever is earlier,” says CA Abhishek Soni, co-founder, Tax2Win.
So, people whose ITR has already been processed, can they file a revised ITR after getting a refund? Do note that the word ‘before completion of assessment’ can mean many things. For example, the assessment can also refer to section 143(1) assessment. Assessment can also mean scrutiny assessment under section 143(3), etc. Note that once your ITR is successfully processed, you will get a section 143(1) intimation assessment order in your registered email address. So, does this mean you can’t file a revised ITR once the original ITR has been processed?
Can you file a revised ITR even if the original ITR has been processed under section 143(1)?
Most filed ITRs get processed under section 143(1) unless it is picked for scrutiny or others. Check your email for the intimation order under section 143(3). If it has been sent, that means your income tax return (ITR) has been processed. If you were expecting a tax refund, it may arrive soon or may have already been deposited. Experts explain that even in such a scenario, if the ITR is processed with a refund and the 143(1) intimation comes, you can file a revised ITR.
“Yes, revised ITR can be filed as per timelines given in Section 139(5) even after receiving an intimation under Section 143(1). ITR however, cannot be revised after the original ITR has been processed under Section 143(3),” says Shalini Jain, Tax Partner, EY India.
According to Soni, the word ‘before completion of the assessment’ means that the income tax assessing officer has not yet passed an order under Section 143(3). “Section 143(3) of the Income Tax Act, 1961 empowers the assessing officer to scrutinise the income tax return filed by a taxpayer to ensure that the information provided is accurate and complete. If the Assessing Officer has not yet issued an order under Section 143(3), a revised ITR can still be filed,” he says.
Revised ITR can be filed if ITR is processed under section 143(1) but not if it’s picked for scrutiny assessment under section 143(3)
A revised ITR can be filed if the original ITR is processed under section 143(1) but not if it is processed under section 143(3). Jain from EY explains that this is because section 143(3) relates to scrutiny assessment and the time limit for the tax department to complete a section 143(3) scrutiny assessment is within 12 months from the end of the assessment year.”This means for ITRs filed for FY 2023-24 (AY 2024-25) the deadline to complete a scrutiny assessment of ITR is March 31, 2026. The timeline for filing revised ITR is 31 December 2024 as per Section 139(5) for FY 2023-24. It is unlikely that the assessment shall be completed by 31 December 2024,” says Jain.
According to Soni, section 143(3) scrutiny assessment refers to the detailed scrutiny assessment, where the assessing officer examines the ITR and issues an assessment order.
“After this order is passed, the return is considered final, and no revisions are permitted. Therefore, it is crucial to ensure that the original return is accurate and complete to avoid issues during the assessment,” he says.
What does ITR processed under section 143(1) mean
You can still file a revised ITR even if your original ITR has been processed if the section 143 (3) assessment has not been completed. “The term ‘ITR processed’ indicates that the tax authorities have finished evaluating your tax return and determined the tax amount owed or the refund, if applicable,” says Soni.
Can you change your tax regime while filing a revised ITR?
Experts say that if you filed your original return under the old tax regime, you can file a revised return under either the old or new regime.
“However, if you initially filed under the new tax regime, your revised return can only be filed under the new regime. This means that you cannot switch between tax regimes when the original ITR is filed in a new tax regime,” says Soni.
According to Jain, section 115BAC (1A) specifies that the new tax regime applies to an individual by default unless the individual exercises the option as per sub-section (6) of Section 115BAC to opt out of the new tax regime.
“Section 115BAC (6) specifies that an individual not having income from business or profession can exercise the option to get taxed as per old tax regime at the time of filing the tax return under sub-section (1) of Section 139 which is related to filing of original ITR before the deadline. Therefore, one can opt out of the new tax regime only at the time of filing the original ITR and not at the time of filing a revised ITR,” says Jain.
If filing a revised ITR results in an increased tax liability, you need to pay the additional tax along with applicable interest.
