ITR Filing and Tax Notices: Can You Revise Your Return as a Response

Filing income tax returns can sometimes be intricate, leaving room for errors that might trigger a tax notice from the income tax department. While such notices are often perceived negatively, they don’t necessarily indicate trouble. In fact, they can serve as a gentle nudge to correct inadvertent mistakes in your tax return. One common question that arises is whether taxpayers can amend their income tax return after receiving a tax notice. The answer is yes, and here’s how.

Understanding the Power of Revision: Section 139(5)

The Income Tax (IT) Act, under Section 139(5), bestows taxpayers with the right to revise their filed IT returns. This provision enables taxpayers to rectify discrepancies, unintentional errors, or omissions in their tax returns, even after a tax notice has been received. The revision can be made within one year from the end of the relevant assessment year or before the conclusion of the assessment year, whichever comes first.

Expert Insights: The Framework of Revision

Diving into the nuances, Suresh Surana, Founder of RSM India, emphasizes that a revised return can be submitted by taxpayers who identify errors, omissions, or inaccuracies in their original or belated tax returns. The revised return can be filed up to three months before the conclusion of the relevant assessment year or before the assessment is completed. For instance, in the context of Assessment Year 2023-24, the revised return deadline would be December 31, 2023, provided the assessment isn’t finalized earlier.

Assessment Completion and Revised Returns

Echoing Surana’s perspective, Divakar Vijayasarathy, Founder and CEO of DVS Advisors, highlights the critical role of assessment completion. He clarifies that assessment, as defined by sections 143(3) and 144 of the IT Act, is only considered complete upon the service of the assessment order. Mere issuance of a notice does not signify assessment finality. Therefore, taxpayers can file a revised return if the filing deadline (typically December 31 of the Assessment Year) has not lapsed.

Embracing Revision as a Corrective Tool

In the realm of income tax returns, the power of revision provides taxpayers with an opportunity to mend unintentional missteps. It’s a mechanism to fine-tune their financial declarations and ensure accuracy, ultimately contributing to a smoother assessment process.

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