Every year, millions of taxpayers file their tax return and report their incomes to the tax department. Filing taxes can be tricky for many given the nitty gritti of tax rules and sections, complexities of capital gains & tax regimes. In general taxpayers feel stress of missing out on something or even worse, making a mistake.
The goal of this forum is to answer all your queries and help you avoid these mistakes. But if by any chance, you end up with an error in your return, it’s not the end of the world.
Here are a few things you can do.
1) Discard your ITR
This option was introduced recently allowing you to discard a filed ITR and file a fresh return.
Remember, It is only allowed if the original ITR isn’t e-verified yet and it essentially means that the return filed earlier becomes invalid.
So, make sure to file the correct ITR after discarding, and e-verify it timely before the due date to avoid late filing penalty.
Once you discard your ITR, it can’t be reversed.
How to discard an ITR?
- Log in to the IT portal.
- Navigate to e-file > Income Tax Return > e-verify ITR > Discard.
2) File a revised return
The second option is filing a revised ITR. This is useful when want to rectify any errors or report any additional details in your return, especially after you’ve e-verified it.
Revised return is filed u/s 139(5) and the information you disclose here will be considered for processing over your original return. You can revise your return as many times as you want, just that every time you file a revised return, you will have to enter details of the original ITR, i.e. the first return filed.
The due date to file a revised return is 31st December of the assessment year. And once filed, remember to e-verify the revised return within 30 days.
3) File an updated return (ITR-U)
If you realise your mistake after the revised return due date (31st Dec), you still have a last resort, in updated return (ITR-U) u/s 139(8A).
It allows you to correct omissions or mistakes up to four years from the end of the relevant assessment year.
You can file ITR-U for preceding 4 assessment years (48 months). For FY 2024-25, ITR-U can be filed from 1st April 2026 to 31st March 2030.
ITR-U can be filed even if the taxpayer has missed the due date of original return, revised return and belated returns.
However, unlike a revised return, you can’t use ITR-U to claim additional refunds or reduce your tax liability. It’s primarily for reporting any missed income and paying any additional taxes. However, it comes with additional interest and penalty if you file after the end of relevant AY. Read more about ITR-U here.
The tax department gives you more than one way to set your mistakes right. Whether it’s discarding, revising, or updating your return, the key is to act quickly and make sure the corrected return is filed and e-verified on time.
Happy tax filing!