Understanding belated, revised and updated Income Tax Returns

Our tax formalities usually involve filing the annual income tax return (ITR), paying taxes, and awaiting a refund (if applicable). However, there may be instances where a taxpayer forgets to file the return on time or makes mistakes while filing. But first, let us ascertain the legal definition of a taxpayer. 

Who is a taxpayer?

Anyone who earns or receives income in India must pay income tax. For people under 60 who opt for the old tax regime, an annual income of Rs 2.5 lakh and above will attract income tax. Under the new regime, this cut-off is Rs 3 lakh. A senior citizen is a taxpayer if their income is Rs 3 lakh and above. A super senior citizen (aged 80 and above) becomes a taxpayer if their annual income is Rs 5 lakh or above. It is to be noted that this has been further revised in Budget 2023.

Also read: https://www.idfcfirstbank.com/finfirst-blogs/finance/latest-income-tax-slabs-and-rates-for-union-budget-2023

Belated, revised, and updated income tax returns
 

• A belated ITR is filed if the taxpayer fails to file the income tax return on or before the original due date. 

• A revised ITR is filed if the original income tax return status is erroneous, i.e. inaccurate.

• An updated ITR can update any or all previous income tax returns filed. However, this can be filed only once for an assessment year. 

Purpose

You can file a belated income tax return if you still need to complete the original ITR filing date. A revised return is filed when you have filed the original ITR on time, but it needs correction. A revised return can also revise a belated return. An updated return can be filed to update any omissions or mistakes in the original, overdue, or revised income tax returns. It can also be filed if none of these returns has been filed.

Timeline

Belated returns can be filed on or before 31st December of the assessment year. The last date for filing a revised return is also 31st December of the assessment year. There is no limit to how many times a belated return can be filed. An updated ITR can be filed after the end of the relevant assessment year but within 24 months of the end of the relevant assessment year.

Also read: https://www.idfcfirstbank.com/finfirst-blogs/finance/is-tax-refund-amount-taxable

Why you should avoid taking these extensions

While filing a belated return, you cannot carry forward your losses (except loss from house property). A late fee under Section 234F and interest under Sections 234A, 234B, and 234C is levied on belated returns. While filing a revised ITR, you must provide the original return's receipt number and filing date. In an updated return, you cannot file a nil or loss return, or claim or increase the tax refund amount. 

Given these drawbacks, you must – as far as possible – file your income tax return on time and correctly.

Also read: https://www.idfcfirstbank.com/finfirst-blogs/finance/banking-details-needed-for-filing-taxes

Conclusion

To reduce your tax liability, you can make tax-saving investments through your IDFC FIRST Bank Savings Account. For attractive fixed deposits and direct investment through demat, open your IDFC FIRST Bank Savings Account today!

Disclaimer

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