Is there any penalty for revising my earnings tax return?

I made an error in my earnings tax return (ITR) on the final day of the deadline, i.e. 31 July. I need to make a revised submitting. Will there be any penalty and by when can I file the revised return?

—Name withheld on request

Many taxpayers usually make errors of their ITRs. Such errors can pertain to incorrect reporting of sure incomes, deductions, tax liabilities, choice of unsuitable ITR type, and so forth.

Such, errors or omissions can result in inquiry from the tax division or the ITR may be thought of faulty. To rectify such errors and guarantee correct reporting, the window to file the revised ITR nonetheless stays open to all of the taxpayers.

The revised ITR for FY 2022-23 may be filed as much as 31 December with none penalty after remitting the taxes due put up such revision. However, it is suggested to file such revised ITR on the earliest, i.e., earlier than any inquiry discover is issued by the tax division for the unique ITR filed.

My ITR has already been processed and I’ve obtained a refund as claimed within the authentic return? What will occur if I revise my IT return now and the refund shouldn’t be what was warranted?

—Name withheld on request

The revised ITR is geared toward rectifying any inaccuracies discovered within the authentic submission. As quickly as appropriate data turns into obtainable and discrepancies within the preliminary return are recognized, it’s advisable to file a revised return promptly. Even if the refund quantity obtained matches the preliminary declare, it stays important to offer correct earnings particulars to the tax authorities, as notices can nonetheless be issued put up credit score of refund.

If, upon revising the return, the refund quantity is decreased, the tax division could increase a requirement for the surplus funds. Conversely, if the revised return signifies a better refund quantity than beforehand obtained, the surplus will likely be duly refunded.

Aditya Goyal is a Bengaluru-based chartered accountant.

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Updated: 09 Aug 2023, 10:41 PM IST