What Happens If I File My Taxes Wrong?

 

People usually end up making mistakes while filing their income tax returns (ITR). However, there is no need to worry as the tax department has made few provisions to allow taxpayers to rectify any mistakes or errors made during filing ITR. Errors while filing an ITR are best avoided however people often end up committing unintentional errors during the filing process. Most errors occur when individuals try filing a tax return in a rush, just before the deadline. This is the major reason why tax specialists usually recommend people file their returns well in advance.

However, what if you realize you have made an error after you have filed your income tax? You may be worried that you made an error, however, there is nothing to worry about it. The tax department has dealt with this type of situation earlier and has solutions for you. There is a provision that allows taxpayers to correct any errors made while filing ITR. There are a few steps that you can follow.

According to Indian law and regulations, one can revise the tax return before 31st December of the relevant assessment year. That means any mistake can be fixed before the income tax offer makes its final assessment.

It is very important to cross-check your tax return before filing to make sure there are no errors. However, at a later stage, if you realize that there are some mistakes, it is recommended to amend those mistakes as soon as possible. The revised tax return can be filed using a recommended format by the Income Tax Department under section 139 (5).

Who Can File The Revised Tax Return?

The provision for filing a revised tax return clearly states that any individual who has filed his/her original tax return on or before the due date may file their revised tax return at any time before December 31 of the relevant assessment year. For instance, if an individual has filed his original tax return for the financial year 2020-21 within the due date, then he can file an amended return before December 31, 2021.

How To File A Revised Return?

For filing the amended or revised return, individuals are required to enter the date of filing the original tax return and the acknowledgement number in the revised form. If you are filing a tax return more than once, then at first or even for every subsequent revision you are required to enter the date of filing the original tax return and the acknowledgement number of the original tax return only.

That means you can file a revised return online only if you have filed your original tax return online and have the 15-digit acknowledgement number of the original return that is sent to you by the Income Tax Department. You can file the revised return incorporating the deletions and additions. You may review and cross-check all the fields, including those that required no change. If your changes result in any tax due, it must be paid before submitting the tax return.

Updated Return

W.e.f. 1st April 2022, the Updated Return concept is introduced. It can be used to file Pending Return or correct the Omissions and Errors that are reported in the Original Return, which leads to additional tax liability. Updated returns cannot be filed where the tax liability decreases. Further updated returns cannot be filed where there are ongoing assessment proceedings, Search, survey cases or where notice by the income tax department has already been issued etc. Updated Returns can be filed within two years from the end of the relevant assessment year.  For instance, an updated return for the financial year 2022-23 can be filed on or before March 31, 2026.

If you wish to file your tax returns smoothly without any errors, you can rely on us. Digilekha Financial Services is an Accounting and Tax Compliance service provider in Pune. Get yourself peace of mind while filing your tax return, as we are here to you help you with every solution and advice you need for your taxes.

Location: Pune, Maharashtra, India

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