Here's how you can revise your income tax returns

Allowing taxpayers to submit returns up till August 31, provides relief to those have not filed it yet, especially employees who did not receive their Form 16 in the designated time frame. They now have time to claim the right refunds. More importantly, the extension is a boon to individuals who might have claimed wrong deductions or made mistakes during their filing. Now, under Section 139(5) of the Income Tax Act, these individuals have a chance to revise their returns by rectifying or omitting incorrect facts.

Why is this important?
As India embraces digitisation, the IT systems have become more vigilant than ever before. If the taxpayer doesn’t rectify errors within a given period, the returns would be deemed null and void for the year. In fact, while assessing returns, Computer Aided Scrutiny Selection (CASS) will select the returns for scrutiny, in case of any under reporting of tax returns. The tax department will send a notice to the taxpayer, making it mandatory to furnish an in-depth break-up of details filled in the return. If the taxpayer has knowingly claimed deductions and is not able to provide supporting documents, then under section 270A, misreported income can lead to the penalty of 200 percent of the evaded tax amount.
Therefore, it is imperative to undertake revisions as early as possible, to avoid heavy fines or penalties.

How you can revise your ITR filing?

Filing a revised return is no different from filing the original return. Tax payers simply need to choose revised return (Part-A-General Information) under section 139(5) and provide information (15-digit acknowledgement no. and date of filing of the original return) to identify the original return submission. The tax payer can then revise accordingly. Once completed it’s necessary to send the ITR report to central processing centre (CPC) in IT Bengaluru office or e-verification can be done.
Top things to keep in mind while filing returns (revised or otherwise) • Mention all sources of income while filing IT returns
• Make sure you have verified the revised returns thoroughly
• Claim your deductions under appropriate sections
• It is mandatory to mention the Date of Filing (DoF) and 15-digit acknowledgement no. of the original ITR filed
• E-verify your ITR using Aadhaar, OTP or net-banking
• In case an individual is filing for the first time, taxpayers can avoid paying late fee up to Rs. 5,000 (under section 234F) by filing by August 31 in case he / she has not filed by July 31
• They can also avoid simple interest at 1 percent for the month of August (under section 234A) on tax liability
India has primarily been a tax evasive country that relies on human assistance to fulfil their tax requirements. This is gradually changing with digital adoption and, the subsequent behavioural changes that arise with it. As the government takes steps to make the tax processes smoother for individuals, it’s the duty of every taxpayer to file returns on time and work together with the government to make India a better nation.
Filing tax returns is an annual ritual for taxpayers and people often end up making mistakes while e-filing their income tax return. What may seem a huge problem can be rectified in a few simple steps by filing a revised return.
Firstly, an income tax return can be revised only if it was filed within the due date of filing returns. If you file your ITR late, you will not be able to revise your return. The last date for filing returns for financial year 2017-18 is July 31, 2018 for individuals and September 30, 2018 for businesses. For filing previous years’ return, the deadline is March 31, 2018. The rectification request has to be submitted by the taxpayer using Section 154 of the Income Tax Act.
To revise your return, you need only to visit the official website of the Income Tax Department for e-filing i.e. https://incometaxindiaefiling.gov.in/ and login with your login id, password, date of birth and captcha code. You will be directed to the ‘dashboard’ with multiple tabs with sub-sections. Click on e-file and then the option of ‘rectification’.
Next, you will have to select the assessment year for which you wish to make the rectification. Enter the latest communication reference number given in the CPC (Central Processing Center) Order. Enter your PAN and click validate.
Once the system validates your acknowledgement number, you may select the ‘rectification request type’ from the given options. The system gives you at least 22 reasons for making changes and you can choose up to four from the list.
After the rectifications are made, you have to select ‘No further data correction required. Reprocess the case’. You will then be prompted with two check-boxes–Tax Credit Mismatch and Tax/Interest Mismatch. You have to select the option for which you want the reprocessing to be done. Before submission, you will get the option to check your 26AS (annual consolidated tax statement) details and Tax Credit Mismatch details. After you are done, click on submit and OK to complete e-filing of your revised tax return.
Income tax return rectification request can be filed using Section 154 of the Income Tax Act by the taxpayer in case of any mistake apparent from the record. To rectify your ITR, visit the official website of income tax - https://incometaxindiaefiling.gov.in/. Login using your login name, password, date of birth and captcha code given. Once your account dashboard opens, select the ‘Rectification’ option under the tab ‘E-File’

Revised Return

Introduction

Revised return is a return which is filed u/s 139(5) as revision for the original return. It is a revision for any omission or mistake made in the filing of that original return. In order to meet the deadline, a person may forget to disclose some income or may make any other mistake like a mistake in claiming any deduction.

Return eligible for revision

• The original return filed u/s 139(1).
• The belated return filed u/s 139(4) can also be revised now.

Time Limit

Revised Return of Income Tax can be filed by an assessee any time

• Before the end of the relevant assessment year; or
• Before completion of the assessment

whichever is earlier.
For example: If an assessee files the return for F.Y. 2016-17 (A.Y. 2017-18) on 8th July 2017. And later on, if he discovers some mistake, then he can file a revised return of Income Tax anytime up to 31 March 2018 or before the completion of Assessment, whichever is earlier.

Procedure

The procedure for filing of revised return is same as the filing of a normal return. Additional steps are as follows:

1. In the column “Return filed”, choose the option of ” 17 – Revised Return – 139(5)“.
2. In the column “Whether original or revised return?”, select “Revised”
3. In the column “If under section: 139(5) – revised return:” fill the

• Original Acknowledgment Number received at the time of filing of original income tax return; and
• Date of filing of Original Return.

4. Now fill rest of the information same as it was under original return after correcting the mistake or omission.

Provisions for Filing of Revised Return

• Revised return can only be filed only after the submission and verification of the original return. On the filing of the revised return u/s 139(5), the original return filed u/s 139(1) or 139(4) shall be deemed to be withdrawn.
• The acknowledgment number received after the filing of original return should have to be with the assessee. It is written in ITR V. Else it can also be obtained from e-filing portal. After logging into the ITR portal, under the option of “view returns”, the details of all the returns you have submitted electronically would be displayed.
• The revised return should have to be filed in the same mode as the original return was filed. If the original return was filed electronically, you should file the revised return electronically as well.
• The Revised return can be filed either in the same ITR Form in which the original return was filed or it may be filed in a different ITR Form.
• From F.Y. 2017-18 onwards, Belated Returns filed under section 139(4) which had been filed by the assessee for any year can be revised as per section 139(5) if he discovers any omission or any wrong statement therein. The revised return for belated return can be filed at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
• It should be noted that if you have received the refund of Income Tax, that does not mean that your assessment is complete. You can still revise your income tax return even if you have received Income Tax Refund. For income tax refund, intimation under Section 143(1) is sent which is different from the assessment above.
• Revised return u/s 139 (5) is allowed to be filed only if the there was any omission or mistake in the original return which was unintentional. The benefit cannot be claimed by a person who has fraudulently filed the original return. It will apply only to cases of ‘omission or mistakes’ and not to cases of ‘concealment or false statements’. If at the time of filing the original return, some income was concealed and revised return under section 139(5) is filed disclosing such income, a penalty can be levied in such a case.

The submission of the ITR online is not the last step in the filling of the ITR. The main problem that the taxpayer face after e-filing of ITR is the next step after e filing of ITR.
For instance, the taxpayers are required to verify their ITR after e filing of ITR and failing to do so may, however, treat their e-filed ITR as invalid. Likewise, ignorance of other things may either lead to an additional tax demand or loss of the tax refunds. The article will tell us step by step things which a taxpayer must do after e-filing of ITR.

Steps after e filing of ITR:

1. Verify ITR

The primary thing which one should do just after e-filing income tax return is:

• he should e-verify her/his ITR, or
• dispatch the signed ITR-V to CPC, Bangalore.

After e filing of ITR of ITR, it can be verified through dispatching ITR V

In the cases where verification method is being chosen by the taxpayer where he will verify through physically signing and posting the ITR-V, then in such a case, he must continuously track the receipt status of the ITR-V at CPC, Bangalore as one would get an alert for the non-receipt of ITR-V due to postal loss. When CPC, Bangalore will receive the ITR-V Form, it then dispatches an email acknowledging the receipt of the ITR-V which should reach the taxpayer within a month of sending the ITR-V to CPC, Bangalore.

After e filing of ITR of ITR, it can now also be verified through

1. Aadhar OTP

After e-filing of ITR, it can be verified through Aadhar OTP but firstly the aadhaar card  has to be linked with the PAN card, then the following steps have to be followed:
Step 1: ITR has to be uploaded on the official e-filing website of Income Tax Department.
Step 2: After uploading the ITR on the website of Income Tax Department, to verify the ITR, the following will appear:

• I already have an EVC to e-verify my return.
• I do not have an EVC and would like to generate EVC to e-Verify my return.
• I would like to generate Aadhaar OTP to e-Verify my return.
• I would like to send ITR-V/I would like to e-verify Later.

In order to verify the ITR through Adhar OTP, the third option has to be selected.The mobile number which is registered with Adhar will get an OTP which will be valid for 10 minutes.
Step 3: The OTP then has to be entered on the page where there will be an option to write OTP to get the ITR verified. Click submit, you will get the message ‘Return successfully e-Verified. Download the Acknowledgement’. You will also receive the acknowledgment on your registered email id.

2. Net banking

• Step 1Open the net banking website of your bank and then login your net banking account. After login, go to the income tax e-filing tab.This process differs from bank to bank.In some of the cases, it will open the website of the income tax department.
• Step 2Click on the option of ‘View Returns/Forms’  to see e-filed tax returns.
• Step 3Select the option ‘Click here to view your returns pending for e-verification’
• Step 4Now click on the option ‘e-verify’.
• Step 5A new pop-up window appears after that and you have to select the option of ‘Continue’ to generate EVC and get your income tax return verified.
• Step 6A message about the confirmation will be displayed on the screen which will also display the transaction ID and EVC code.You may also download the attachment for record purposes.

3. Electronic Verification Code (EVC)

Electronic Verification Code (EVC) is a 10 digits code to e filing of ITR. It is an alphanumeric code and can be generated via various methods. EVC has the following features and usage in order to e-verify ITR:

• A person who is e-filing ITR can use EVC which is an alphanumeric code to verify his/her ITR.
• The EVC could be used to verify ITR 1 / ITR 2 / ITR 3 / ITR 4.
• EVC is a unique code and the person having PAN can only use his EVC. This means one EVC for one PAN.
• One EVC can be used to validate only one ITR whether it is original or revised return.
• EVC code remains valid for 72 hours but can be generated various times through various modes.
• The verification needs to be done within 120 days of the e filing of return if the tax returns are already filed or uploaded.

Generation of EVC

According to CBDT, EVC can be generated by four methods to generate Electronic Verification Code (EVC). Before proceeding to generate EVC it has to be ensured that the mobile number and email address registered with the CBDT is accessible by you.

1. Generation of EVC through e-filing website

2. Generation of EVC through Linking Aadhaar Card with PAN

3. Generation of EVC through Bank ATM (Automatic Teller Machine)

4. Generation of EVC through Net Banking Facility

2.Track the Intimation status

After the process of e-verification of ITR, the taxpayer is required to wait for around one month in order to get the intimation from the  IT department under section 143(1). One would receive another email from the IT department once his income tax return gets processed. This email is called as the Intimation under section u/s 143(1). Intimation tells the taxpayer the details about the total TDS deducted, total tax paid, and deductions if any. Intimation under section 143(1) is an intimation for ITR after the ITR is processed by the income tax department to the taxpayer about any arithmetical mistakes or changes to be done.
    The same is reflected in the following 2 columns of intimation:

1. Income tax as provided by the taxpayer in the return of income
2. Income tax which is payable as computed by the income tax office u/s 143(1)
3. Pay the additional tax if the intimation specifies so:

If the Intimation which is received u/s 143(1) specifies that the tax paid which is by the taxpayer is less than what is computed by the IT department then this intimation becomes Notice of Demand u/s 156.

3.Track Income Tax refund status

In case the income tax paid is more than what is computed by the IT department then the taxpayer is however entitled to the tax refund. From this year onwards, the refund would be directly deposited in the bank account which is mentioned in the income tax return online.

4.Keep Income Tax Records

Even if the taxpayer is done with filing of income tax return, it is very important to keep record of all the paperwork safely as the legal proceedings under the income tax act can be initiated within a span of six years and therefore s/he must keep all the  income tax related documents safely for at least seven years.
It may be noted that the following records are advisable to be kept for future references:

• Form 16, Form 12 B
• Filed ITR along with ITR V
• Copy of Challan for tax paid
• Tax deducted at source (TDS), Form 16A
• Tax exemption documents
• Bank account statements
• Gifts deeds
• The intimation from the IT department (soft copy email) and hardcopy

When it comes to revising your tax returns, you may have many questions related to it. Here are some of them and their answers:

Q. Is there any charge for revising income tax return?
Ans: No, if you have filed your income tax returns on or before the due date, you are eligible to revise/correct it free of cost. Earlier, it was not allowed to file a revised return for late filers. However, from April 1, 2017, the income tax department has allowed revised returns even for those who have filed their returns after the due date.

Q. How many times can a return be revised?
Ans: You need to revise your return if you have noticed any mistake or you think you have made a mistake while filing the returns. You can revise your returns until you file a correct one, however, this should be done within the prescribed time limit. Here are the key points for filing your revised return:

* If a person after furnishing the return finds any mistake, omission or any wrong statement, then return should be revised within the prescribed time limit.

* A return can be revised before the end of the Assessment Year or before the completion of the assessment; whichever is earlier. (w.e.f A.Y 2018-19)

* However, for the earlier Assessment Years preceding to the Assessment Year 2018-19, a return can be revised before the expiry of one year from the end of the Assessment Year or before the completion of the assessment by the Department; whichever is earlier. (till A.Y 2017-18).

* If the original return has filed in paper format or manually, then technically it cannot be revised by online mode or electronically.

* Revised return can be filed online under Section 139(5)