Forgot to include interest on last years income tax refund

Save Share

This query is : Resolved

Quick Summary

If you've forgotten to declare interest received on a previous year's income tax refund on your current tax return, don't panic. You can file a revised return under Section 139(5) of the Income Tax Act to correctly declare this interest income. Crucially, you can still offset brought-forward losses in your revised return, just as you did in the original filing.

Priya

Priya (Querist)

19 August 2024 Hi, I was checking my last year's return (AY 23-24) and realised I had received interest on the amount that the income tax had refunded.

For this year (AY 24-25) I recalled there was a section in Schedule OS: "Interest Gross -> From Income Tax refund"
I left it blank :(

My current ITR (AY 24-25) is not yet processed. What should I do now? I'm a bit scared.

I searched online, and I think I need to file revised return.
In the original return I had offset profit from this year from brought forward loss from last year.
Will I still be able to do that with revised return (since its past due date now)?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 August 2024 Yes, you can file revised return u/s. 139(5) IT act, for the addition of interest income.
You can even offset the past losses in the revised return as claimed in original return.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

26 August 2024 Good Luck.

Priya

Priya (Querist)

02 September 2024 Thanks for the help.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now