How to file Revised Return under Section 139(5) of Income Tax Act, 1961?

Revised Return under section 139(5)

If a person having furnished his return of Income u/s 139(1) of Income Tax Act, 1961  i.e. within the due date of filing the return or in pursuance of a notice under section 142(1), discovers that in the original return he has made some mistakes, omissions or wrong statements bonafidely/unintentionally then he can revise his return of income u/s 139(5) of Income Tax Act at any time before the expiry of one year from the end of the relevant assessment year of before the completion of assessment, whichever is earlier.

For example: If a Return of Income is filed by the assessee for the Financial Year 2012-13 i.e. Assessment Year 2013-14 on 15th July 2012 (before the due date of filing of Income Tax Return i.e. 31st July 2012), and he later discovers some mistake, he can file a Revised Return of Income Tax anytime up to 31st March 2015 or before the completion of Assessment whichever is earlier.

Please Note: For the purpose of this section, the word assessment shall refer to assessment made under Section 143(3) and Section 144. Assessment made under section 143(1) will not be treated as assessment for this purpose as revised return can be filed even after the intimation under section 143(1) has been served.

Provisions and Rules relating to Revised Return are:

1. Revised return should be filed only if the mistake is bonafide

Original return should be revised only if there is a bonafide mistake in the original return. The benefit of section 139(5) cannot be claimed by a person who has made false return knowing it to be false.

2. Time period of filing the revised return

As per section 139(5), the revised return can be filed before the expiry of one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier.

3. Revised return can be filed only if the original return was filed within due date

A return filed only u/s 139(1) can be revised i.e. only return filed within the due date as prescribed u/s 139(1) can be revised. A belated return filed u/s 139(4) cannot be revised. Thus if a return is filed after the due date then it cannot be revised.

4. Return filed in response to notice u/s 148 can also be revised

Return filed in response to notice u/s 148 can also be revised, as it is provided u/s 148 that for such return all the provisions of section 139 shall apply. It is to be noted that notice u/s 148 is issued for the assessment of the escaped income. If the returns are revised before the notice under Section 148 is issued, then there is no penalty.

5. Loss Return filed u/s 139(3) can also be revised

A loss return filed under section 139(3) within due time can also be revised and in such case loss as per the revised is carried forward even if the amount of loss in revised return is increased. According to section 139(3), once a return is filed, all the provisions of the Income Tax Act shall apply as if such return has been filed u/s 139(1) [CIT v Periyar District Co-Operative Milk Producers Union Ltd. (2004) 266 ITR 705 (Mad.)]

6. Return Can be revised any number of times

As per decision in Dr. N. Srivastava, there is no restriction on the number of times a return can be revised and it can be revised any number of times provided it is within the prescribed time limits.

7. Belated Return filed u/s 139(4) cannot be revised

A Belated Return filed u/s 139(4) cannot be revised as section 139(5) provides that only Return filed under section 139(1) or in pursuance to a notice under section 142(1) can be revised [Kumar Jagdish Chandra Sinha v CIT (1996) 220 ITR 67 (SC)]

8. Revised Return Substitutes the Original Return

Once, a revised Return is filed, the originally filed return must be taken to have been withdrawn and substituted by the Revised Return [Dhampur Sugar Mills Ltd v CIT (1973) 90 ITR 236 (All)]

9. A Letter cannot construed Revised Return

If you missed any deduction or income in the return you can refile it. But Letter addressed to the assessing officer informing him that a certain items of income not mentioned in the original return be taken to be the income of the assessee would not constitute a proper revised return under section 139(5) [Woman Padmanabh Dande v CIT (1952) 22 ITR 339 (Nag) and Goetze (India) Ltd. v CIT (2006) 284 ITR 384]

 10. Interest payable u/s 234B/C

Since you have already filed original return within due time, therefore no need to pay interest u/s 234A, but you have to pay 234B, 234C interest if any tax is due.

11. Whether any penalty can be levied u/s 271(1)(c) for corrections made in revised return?

Section 271(1)(c) of Income Tax Act provides penalty for concealment of Income and for furnishing inaccurate particulars in the return of Income. In case of concealment of income and furnishing of inaccurate information in income tax return an individual will be penalized.

  • If some income was concealed in the original return and revised return disclosing such income is filed after the AO has unearthed such undisclosed income then penalty can be levied.
  • If the assessee after the search filed the revised return declaring higher income than declared in original one, to buy peace of mind and to avoid litigation then penalty cannot be levied.
  • If the taxpayer has declared higher income in revised return of his own and there is nothing to prove that the taxpayer had concealed income malafidely then no penalty can be levied.
  • If the assessee after the search filed the revised return declaring higher income than declared in original one, to buy peace of mind and to avoid litigation then penalty cannot be levied.
  • It is to be noted that if revised return is filed to correct a bonafide mistake then no penalty can be levied, otherwise it can be levied which could be 100 to 300 percent of tax dues.

It is advisable that if any mistake has happened in the original return then revised return should be filed before any action on the mistake is taken by the AO to escape penalty u/s 271(1)(c).

How to File Revised Return u/s 139(5)?

If an individual has already filed the income tax return and subsequently discover any omission or wrong statement therein, he can re-file the return with necessary modification. This re-filing of the income tax return is referred to as Revised Return. The process for revising the return is very simple.

To file revised returns, one can use both the online and physical methods. However, you can revise returns online only if you have filed the original returns online and have the 15-digit acknowledgement number with date of filing original return. You cannot, otherwise, file returns online. I-T department searches for the original details once the returns are revised. On not finding the original return, an error is shown.

The Revision shall preferably be filed in the same ITR Form in which the original return was filed, and on filing of this new return under section 139(5), the original return filed under section 139(1) shall be deemed to be withdrawn and substituted by the Revised Return.

Revised Return u/s 139(5)

Procedure of filing Revised Return u/s 139(5)

Start filing Revised Return by Selecting “Revised” in option of Whether Original or Revised Return? And then the following three items are required to be submitted with Revised Income Tax Return:-

  • Receipt No of Original Return
  • Date of Submission of Original Return
  • Entry of Code 16-u/s 139(5) as shown in above screen

The above three major items are required to submit Revised Income Tax Return and then you can rectify your data as rectification and generate XML file for successful uploading.

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