Read how to file a revised income tax return if your refund is lower than expected. Follow our detailed guide to ensure you get the correct refund amount. the Income Tax Return (ITR) filing season often brings a sense of relief once the July 31st deadline passes. However, this relief can quickly turn into anxiety if taxpayers discover discrepancies in their refunds. According to the Income Tax Department, a record 7.28 crore returns were filed by the deadline. Yet, not all taxpayers receive the refund they anticipate. For those who find themselves in a situation where their expected refund is less than what was calculated, understanding the process of filing a revised return is crucial.
Understanding the Income Tax Refund Process
Before delving into the revised return process, it’s essential to grasp how the refund process works. After filing their ITR, taxpayers eagerly await the refund, which is essentially the excess tax paid over the actual tax liability. The Income Tax Department begins by processing the returns and sends an intimation to the taxpayers’ registered email ID under Section 143(1) of the Income Tax Act. This intimation includes details on the department’s calculation of the taxpayer’s income, deductions, and tax liability.
If the refund is due, it typically takes three to four weeks for the amount to be credited to the taxpayer’s account. However, discrepancies can arise in the tax calculation, leading to a lower refund than expected. In such cases, taxpayers have the option to file a revised return.
When and Why to File a Revised Return
Filing a revised return becomes necessary when a taxpayer notices an error in their original return that results in a lower refund. Common reasons for filing a revised return include:
- Incorrect Income Reporting: Mistakes in reporting income can lead to higher tax liability and a reduced refund.
- Omissions in Deductions: Failing to claim eligible deductions can increase tax liability.
- Errors in TDS (Tax Deducted at Source) Credit: Incorrect credit for TDS can lead to discrepancies in the refund amount.
- Bank Account Details: If incorrect bank account details were provided, the refund could be delayed or sent to the wrong account.
It’s important to note that filing a revised return is different from filing a rectification request. A rectification request under Section 154 is only applicable for correcting errors in the intimation received from the Income Tax Department, whereas a revised return is filed to correct errors made by the taxpayer in the original ITR.
Steps to File a Revised Return
Filing a revised return is a straightforward process, but it must be done with precision. Here’s a step-by-step guide to help you through the process:
- Log in to the Income Tax e-Filing Portal: Start by visiting the official Income Tax e-filing portal. Use your PAN (Permanent Account Number) and password to log in.
- Select the Revised Return Option: Once logged in, navigate to the ‘e-File’ section and select ‘Income Tax Return’. Choose the assessment year for which you want to file the revised return. Under ‘Return Type’, select ‘Revised Return (Section 139(5))’.
- Enter the Correct Information: The next step is to correct the errors in your original return. Whether it’s income, deductions, or TDS credits, ensure that all details are accurately filled in.
- Provide the Original ITR Details: You will be required to enter the acknowledgment number and the date of filing of the original ITR. This links the revised return to your original filing.
- Submit and Verify the Return: After making the necessary corrections, submit the revised return. You must then verify the return through one of the available methods: Aadhaar OTP, EVC (Electronic Verification Code), or by sending a signed ITR-V to the Centralized Processing Center (CPC) in Bengaluru.
- Await Confirmation: After successful submission and verification, you will receive an acknowledgment from the Income Tax Department. The revised return will be processed, and the correct refund amount will be recalculated and credited to your account.
Timelines for Filing a Revised Return
Understanding the timeline for filing a revised return is crucial. According to Section 139(5) of the Income Tax Act, a taxpayer can file a revised return at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. For instance, if you filed your original return for the Financial Year 2022-23, you can revise it until March 31, 2024, or before the completion of the assessment, if it happens earlier.
Common Pitfalls to Avoid
While filing a revised return, there are several common mistakes that taxpayers should avoid:
- Multiple Revisions: Although the law allows for multiple revisions, frequent changes can attract scrutiny. Ensure that all errors are corrected in one go.
- Ignoring the Original Acknowledgment Details: Always reference the original ITR acknowledgment number and filing date when filing a revised return.
- Incorrect Bank Details: Double-check bank details to avoid delays in receiving your refund.
- Missed Deadlines: Keep track of the deadlines to avoid losing the opportunity to file a revised return.
Rectification Request vs. Revised Return: Knowing the Difference
Many taxpayers confuse a rectification request with a revised return. As highlighted earlier, a rectification request under Section 154 is used when there is a mistake in the intimation sent by the Income Tax Department. For instance, if the department incorrectly computes your income or TDS, you can request rectification. This is not the same as filing a revised return, which is used to correct errors you made in the original filing.
Filing a revised return can seem daunting, but with a clear understanding of the process and timely action, it can be a straightforward task. If you discover that your refund is less than what you anticipated due to errors in your original ITR, don’t hesitate to file a revised return. The key is to act promptly, ensure accuracy in your revised filing, and stay informed about the timelines.
By following the steps outlined above, you can successfully navigate the revised return process, correct any errors, and ensure that you receive the full refund you are entitled to. Remember, accurate and timely filing is the cornerstone of a smooth tax experience.
