If You Still Want To Make Corrections In Your Income Tax Return, What Can You Do?

A taxpayer who has already filed an income tax return but subsequently discovers an omission, inaccuracy, or clerical error has several statutory avenues to correct such mistakes under the Income-tax Act, 1961.

Revised Return Under Section 139(5): The Go-To For Timely Fixes

The foremost remedy is to file a Revised Return under Section 139(5), permissible when the original or belated return has been filed within the due date.

This provision allows the assessee to substitute the earlier return with a corrected one, provided such revision is effected before the end of the relevant assessment year or before completion of assessment, whichever is earlier. “For mistakes apparent from the record, such as arithmetical or processing errors, the assessee may also invoke Rectification under Section 154, requesting correction of the processed return without refiling a new one,” says Tushar Kumar, advocate, Supreme Court of India.

Updated Return Under Section 139(8A): Last-Resort For Late Or Omitted Income

Where the time limits for revision have elapsed or no return was originally filed, recourse may be taken to an Updated Return under Section 139(8A) (Form ITR-U), enabling voluntary disclosure of previously omitted income within forty-eight months from the end of the relevant assessment year, subject to payment of additional tax.

The nature of the error determines the permissible corrective route. Rectification under Section 154 is confined to patent and self-evident mistakes, such as a mismatch in TDS credit or computational discrepancies. “A Revised Return under Section 139(5), on the other hand, caters to substantive inaccuracies or omissions in income, deductions, or disclosures discovered after filing, provided the assessment is not yet concluded,” says Kumar.

The Updated Return under Section 139(8A) extends this remedial framework to cases of non-disclosure or non-filing altogether. However, it carries a fiscal cost in the form of additional tax, which is levied depending on when the return is furnished. Importantly, an ITR-U cannot be used to claim a refund, carry forward losses, or reduce income already declared.

How To Make A Decision 

The decision to file a Revised or Updated return must thus be made with due regard to the statutory timelines, intended outcome, and financial consequences. “Where an assessee seeks to correct an inadvertent omission and the window for revision remains open, the Revised Return under Section 139(5) remains the most prudent and economical recourse,” says Kumar.

Conversely, where the error involves previously undisclosed income and the revision period has lapsed, filing an Updated Return under Section 139(8A) serves as a lawful mechanism to regularise one’s tax position and mitigate exposure to penalty or prosecution.

“Taxpayers should carefully assess the nature of the error, timing, and financial implications before choosing the appropriate correction route. While the Revised Return is more flexible and penalty-free, the Updated Return offers a longer correction window but comes with additional tax costs. For minor factual or clerical errors, a Rectification Request may suffice,” says Amit Bansal, partner, Singhania & Co.