Section 139 (9) of Income Tax Act: All You Need to Know about Revised Return filing

Section 139 (9) of the Income Tax Act: An Overview

Section 139 (9) of the Income Tax Act is a provision that deals with the rectification of errors in income tax returns. It allows taxpayers to rectify any errors or omissions in their income tax returns after they have been filed with the income tax department. This provision is crucial for taxpayers as it allows them to correct any mistakes that may have been made in their returns and avoid penalties for non-compliance. In this blog, we will take a closer look at Section 139 (9) of the Income Tax Act and understand its various aspects.

What is Section 139 (9) of the Income Tax Act?

Section 139 (9) of the Income Tax Act states that if a taxpayer discovers any mistake or omission in the return of income that has already been filed with the income tax department, then he can rectify it by filing a revised return. The revised return can be filed anytime before the expiry of one year from the end of the relevant assessment year or before completion of assessment, whichever is earlier.

Who can file a revised return?

Any taxpayer who has filed his return of income can file a revised return under Section 139 (9) of the Income Tax Act. However, it is important to note that a revised return can only be filed if the original return was filed within the due date specified under Section 139(1) of the Income Tax Act.

What errors can be rectified under Section 139 (9)?

A revised return can be filed to rectify any mistakes or omissions made in the original return. Some of the errors that can be rectified under Section 139 (9) include:

1. Incorrect personal details such as name, address, PAN, etc.
2. Incorrect tax calculations, including deductions and exemptions.
3. Income from other sources that was not reported in the original return.
4. Incorrect details of TDS (Tax Deducted at Source) or TCS (Tax Collected at Source).

However, it is important to note that a revised return cannot be filed to make any changes in the nature of income, i.e., if an income has been disclosed as salary in the original return, it cannot be changed to business income in the revised return.

Procedure for filing a revised return

To file a revised return under Section 139 (9) of the Income Tax Act, a taxpayer needs to follow these steps:

1. Visit the income tax e-filing website and log in using the user ID and password.
2. Select the option ‘Revised Return under Section 139(5)’ under the ‘e-file’ tab.
3. Choose the relevant assessment year for which the revised return needs to be filed.
4. Enter the details of the original return such as acknowledgement number and date of filing.
5. Make the necessary changes in the revised return and submit it.
6. Once the revised return is submitted, the taxpayer needs to verify it using any of the available methods such as Aadhaar OTP, Netbanking, or by sending a signed ITR-V to the income tax department.

Penalties for Non-Compliance

Failure to file a revised return within the prescribed time limit can result in penalties and interest charges. The penalty for late filing of a revised return is Rs. 5,000 if the return is filed after the end of the relevant assessment year but before December 31st of the assessment year or Rs. 10,000 if the return is filed after December 31st of the assessment year. If the total income of the taxpayer does not exceed Rs. 5 lakhs, then the maximum penalty that can be levied is Rs. 1,000.

In addition to the penalty, interest is also charged on the tax payable for the period from the due date of the original return until the date of payment of tax. The interest rate is currently 1% per month or part thereof.

Common Mistakes to Avoid

While filing a revised return under Section 139 (9) of the Income Tax Act, it is important to avoid certain mistakes to ensure that the revised return is accepted by the income tax department. Some common mistakes to avoid include:

1. Filing a revised return even when it is not required – A revised return should only be filed if there is a mistake or omission in the original return. If there are no errors, then there is no need to file a revised return.
2. Making incorrect changes in the revised return – It is important to ensure that the changes made in the revised return are accurate and correct. Any incorrect changes can lead to further issues with the income tax department.
3. Filing a revised return after the prescribed time limit – A revised return can only be filed within the prescribed time limit of one year from the end of the relevant assessment year or before completion of assessment, whichever is earlier. Filing a revised return after the prescribed time limit can result in penalties and interest charges.

Conclusion

Section 139 (9) of the Income Tax Act is a crucial provision that allows taxpayers to rectify any errors or omissions made in their income tax returns. It is important for taxpayers to make use of this provision to avoid penalties and ensure compliance with the income tax laws. However, it is equally important to ensure that the revised return is filed within the prescribed time limit and that the errors are rectified correctly to avoid any further issues with the income tax department.

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Frequently Asked Questions (FAQs)

What is Section 139 (9) of the Income Tax Act?
Section 139 (9) of the Income Tax Act allows taxpayers to file a revised income tax return in case they discover any errors or omissions in their original return.

When can a revised return be filed under Section 139 (9)?
A revised return can be filed within one year from the end of the relevant assessment year or before completion of assessment, whichever is earlier.

What is the penalty for late filing of a revised return?
The penalty for late filing of a revised return is Rs. 5,000 if the return is filed after the end of the relevant assessment year but before December 31st of the assessment year or Rs. 10,000 if the return is filed after December 31st of the assessment year.

Is it mandatory to file a revised return under Section 139 (9) if there are errors in the original return?
No, it is not mandatory to file a revised return. Taxpayers can choose to ignore minor errors or omissions if the impact on the tax liability is not significant.

Can a revised return be filed if the original return has already been processed by the income tax department?
No, a revised return cannot be filed if the original return has already been processed by the income tax department.

Can a revised return be filed if the original return was filed after the due date?
No, a revised return cannot be filed if the original return was filed after the due date.

What is the interest rate charged on the tax payable for the period from the due date of the original return until the date of payment of tax?
The interest rate is currently 1% per month or part thereof.

Can a revised return be filed if the taxpayer has already received a notice from the income tax department for scrutiny or assessment?
No, a revised return cannot be filed if the taxpayer has already received a notice from the income tax department for scrutiny or assessment.

Can a revised return be filed if the taxpayer has already paid the tax due as per the original return?
Yes, a revised return can still be filed if the taxpayer has already paid the tax due as per the original return. However, the interest charged on the tax payable will still be applicable.

Can a revised return be filed online?
Yes, a revised return can be filed online through the income tax department’s e-filing portal.