“The Income Tax Department allows you to correct errors through a ITR revisedeven after the deadline has passed. You may file a revised return before December 31 of the relevant year. assessment year or before the completion of the assessment, whichever is earlier,” says CA Abhishek Soni, co-founder, Tax2Win.
So, for people whose ITR has already been processed, can they file a revised ITR after receiving a refund? Please note that the word “before completion of assessment” can mean many things. For example, assessment can also refer to section 143(1) assessment. Assessment can also mean scrutiny assessment under section 143(3) etc. Please note that once your ITR has been successfully processed, you will receive a section 143(1) notification assessment order on your registered email address. So, does this mean that you cannot file a revised ITR once the original ITR has been processed?
Can you file a revised ITR even if the original ITR has been processed under section 143(1)?
Most filed tax returns are processed under section 143(1) unless they are selected for examination or other purposes. Check your email for the order of service under section 143(3). If it has been sent, that means your income tax return (ITR) has been processed. If you were waiting for a tax refundIt may arrive soon or it may have already been filed. Experts explain that even in such a scenario, if the ITR is filed with a refund and the 143(1) notice arrives, a revised ITR can be filed.
“Yes, a revised ITR can be filed as per the time limits under Section 139(5) even after receiving a notice under Section 143(1). However, the ITR cannot be revised after the original ITR has been processed under Section 143(3),” says Shalini Jain, Tax Partner, EY India.
According to Soni, the word “before the assessment is completed” means that the income tax assessing officer has not yet issued an order under section 143(3). “Section 143(3) of the Income Tax Act, 1961 empowers the assessing officer to examine the income tax return filed by a taxpayer to ensure that the information furnished is accurate and complete. If the assessing officer has not yet issued an order under section 143(3), a revised income tax return can still be filed,” he said.
A revised ITR may be filed if the ITR is processed under section 143(1), but not if it is selected for scrutiny assessment under section 143(3).
A revised ITR can be filed if the original ITR is processed under section 143(1), but not if it is processed under section 143(3). EY’s Jain explains that this is because section 143(3) relates to scrutiny assessment and the time limit for the tax department to complete a section 143(3) scrutiny assessment is within 12 months from the end of the assessment year. “This means that for ITRs filed for the financial year 2023-24 (AY 2024-25), the last date for completing a scrutiny assessment of the ITR is March 31, 2026. The timeline for filing the revised ITR is December 31, 2024 as per Section 139(5) for FY 2023-24. The assessment is unlikely to be completed before December 31, 2024,” Jain said.
According to Soni, the scrutiny assessment under Section 143(3) refers to the detailed scrutiny assessment, where the assessing officer examines the ITR and issues an assessment order.
“Once this order is approved, the declaration is considered final and no revisions are permitted. Therefore, it is critical to ensure that the original declaration is accurate and complete to avoid problems during the assessment,” he said.
What does ITR processed under section 143(1) mean?
You can still file a revised ITR even if your original ITR has been processed if the assessment under section 143(3) has not been completed. “The term ‘processed ITR’ indicates that the tax authorities have finished assessing your tax return and have determined the amount of tax due or refund, if applicable,” says Soni.
Can you change your tax regime by filing a revised ITR?
Experts say that if you filed your original return under the old tax regime, you can file a revised return under either the old or the new regime.
“However, if you initially filed your return under the new tax regime, your revised return can only be filed under the new regime. This means that you will not be able to change tax regimes when the original tax return is filed under a new tax regime,” says Soni.
According to Jain, section 115BAC (1A) specifies that the new tax regime applies to an individual by default unless that individual exercises the option provided for in subsection (6) of Section 115BAC not to participate in the new tax regime.
“Section 115BAC(6) specifies that a person who does not have income from business or profession can exercise the option to pay tax as per the old tax regime at the time of filing the tax return under sub-section (1) of Section 139, which relates to filing of original ITR before the due date. Thus, one can opt not to apply the new tax regime only at the time of filing the original ITR and not at the time of filing a revised ITR. ITR“, says Jain.
If filing a revised ITR results in higher tax liability, you will have to pay the additional tax along with applicable interest.
Disclaimer
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.