Revised Tax Return Penalties Explained: Don’t File Without Knowing This

• September 25, 2023
• CA Chandan Agarwal's Office

To qualify for a revised return, the original return must have been filed by the due date, which was July 31, 2023

As the deadline for filing the original income tax return (ITR) concluded on July 31, many individuals may wonder about the implications of filing a revised ITR after this date. Fortunately, there are options available for those who missed the original deadline, but it’s essential to understand the rules surrounding belated and revised returns.

For those who missed the deadline to file the original ITR, there is an option to file a belated ITR. Additionally, taxpayers who initially filed their returns, but later realised they omitted information or made incomplete disclosures can file a revised return.

When can you file a revised return?

To qualify for a revised return, the original return should have been filed by the due date, which was July 31, 2023, and it must have been verified within 30 days of e-filing. If the original return wasn’t filed by the due date, it will be considered a belated tax return, incurring late fees under Section 234F of the Income Tax Act, 1961.

However, if the original return was filed on time, taxpayers have time until December 31 to submit a revised return under Section 139(5). This can be done even if the original return has already been processed by the I-T Department.

Penalties on filing belated ITR

Filing a belated return comes with a penalty. The taxpayers filing a belated return will be levied a late fee of Rs 5,000 and applicable interest rate. If the taxpayer’s total annual income is less than Rs 5 lakh in a financial year, the late fee will be Rs 1,000.

Interest changes will be applicable at a rate of 1 per cent per month on the taxable amount from the last date of ITR filing.

No penalty is imposed for filing a revised return. However, if the assessing officer discovers that the error was intentional or fraudulent, the revision may not be allowed, and a penalty could be imposed.

Furnishing an updated return does not incur a penalty or fee. Still, taxpayers are required to pay additional tax, if any, according to Section 140B of the Income Tax Act.

Section 139(4) of the Income-tax Act of 1961 allows for the filing of overdue returns. The process for filing a belated return is the same as filing an ITR before the due date.

The revised or belated ITRs can be filed through the e-filing portal of the Income Tax Department at https://eportal.incometax.gov.in/. Additionally, certain private entities registered by the Income Tax Department can assist with the filing process.

Source: https://www.news18.com/business/revised-itr-filing-penalty-income-tax-return-8577890.html