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Filing a revised tax return is quite easy

Filing a revised tax return is quite easy
The revision has to be done before the prescribed deadline or before completion of assessment, whichever is earlier
If you are one of the last-minute filers of income-tax returns, it is quite possible that mistakes have crept in some computation or other. For instance, you might have incurred capital losses but haven’t offset it against capital gains or there could be some additional income, such as bank interest income which you have forgotten to show. In such cases, despite the final deadline of August 5 being over, you have the option to file a revised return.
After you have filed your return, the Central Processing Centre (CPC) in Bengaluru carries out electronic processing of returns. It then issues an intimation which could convey the demand due, refund payable, or it may simply say that nothing more is required. “In recent times, the scope of matters that the CPC can look into has been widened. For instance, in case of any discrepancy between the income reflected in Form 26AS, Form 16A or Form 16 and income offered for tax in the return, the CPC is now empowered to make preliminary adjustment while processing the return. The taxpayer is then supposed to respond to the demand notice, and in certain cases, file a revised return,” says Suresh Surana, founder, RSM Astute Consulting Group.
A revised return has to be filed within the prescribed deadline. For financial year (FY) 2016-17, it can be filed within two years from the end of the financial year. Thus, the revised return for FY 2016-17 can be filed by March 31, 2019. However, from FY 2017-18 onward, this time limit will be reduced to one year. Thus, the revised return for FY 2017-18 will have to be filed by March 31, 2019. Though these deadlines may appear relaxed, you also need to bear in mind that the revised return has to be filed before the completion of assessment, so you actually have less time.
A tax return can be revised any number of times if the original return was filed within the prescribed time limit. “This facility should be used sparingly as it may increase the chances of your return being selected for scrutiny, especially if it results in a large refund for you,” says Chetan Chandak, head of tax research, H&R Block India. Revision is allowed only if the omission was unintentional. “If you deliberately file a false return, you could be liable to be imprisoned under Section 277 and the offence will not be condoned by filing a revised return. Further, you may also have to pay 100-300 per cent of tax due as penalty for concealing income,” adds Chandak.
To file a revised return, you have to use the same ITR form that you had used for filing the original return. In the form, select the option for revised return. If you had filed the original return electronically, do the same for the revised return by generating and uploading a revised xml file. In case of online revision, you also have to provide the 15 digit acknowledgement number received on filing the original return and date of filing the original return. “If the changes in tax return result in any additional tax due, pay this tax before submitting your return,” says Chandak. After you have filed the revised return, your original return will be considered to have been withdrawn and substituted by the revised return.
The Business standard, New Delhi, 18th August 2017

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