Skip to main content

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

Comments

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6

Jaitley plans to cut MSME tax rate to 25%

Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem

Don't forget to verify your income tax return in August: Here's the process

  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s