Filing income tax returns is a crucial responsibility for every taxpayer. However, it’s not uncommon to realize errors or omissions after filing the original return. To address such issues, the Income Tax Act provides options like Revised Return and Updated Return. Although they may sound similar, they serve different purposes and are governed by different rules. The concept of updated return was introduced recently through the Union Budget, 2022.
Revised Return
Under section 139(5) of the Income Tax Act a revised return can be filed to correct any mistakes or omissions in the originally filed return. This can include errors in income reporting, deductions, or tax payments.
Key Features
- Who can file: Any taxpayer who has filed the original return on or before the due date.
- Time limit: Up to 3 months before the end of the relevant assessment year.
- Number of times: Can be revised multiple times, as long as within the time frame.
Updated Return
An Updated Return allows a taxpayer to voluntarily update their return, even if no return was filed earlier. It is introduced under Section 139(8A) to promote voluntary tax compliance.
Key Features
- Section: 139(8A) of the Income Tax Act.
- Who can file: Any taxpayer, whether they filed the original return or not.
- Time limit: Within 24 months from the end of the relevant assessment year.
- Additional tax: Subject to payment of an additional tax of 25% or 50% on the tax and interest due.
Major Differences Between Updated Return and Revised Return
| Particulars | Revised Return | Updated Return |
| Relevant Section | 139(5) | 139(8A) |
| Eligibility | Only if original return filed on or before due date | Can be filed even if no return was filed earlier |
| Time Limit | 3 months before end of assessment year | 24 months from end of assessment year |
| Purpose | To correct genuine mistakes | To disclose omitted income or rectify underreporting |
| Penalty/Additional Tax | No additional tax or penalty | Additional tax of 25% (if filed within 12 months), or 50% (if filed within 24 months) |
| Number of Times | Multiple times allowed | Only once per assessment year |
| Refund | Can be claimed | Cannot be claimed |
| Return | Same ITR which was originally filed | ITR U |
FAQs
Missed the original filing deadline. Omitted certain incomes. Need to disclose previously unreported transactions. Want to avoid penalties under scrutiny or reassessment.
A Revised Return can be filed up to 3 months before the end of the relevant assessment year or before the assessment is completed, whichever is earlier.
No, there is no penalty or additional tax for filing a Revised Return. However, it must be filed within the allowed time frame.
No, once an Updated Return is filed under Section 139(8A), it cannot be revised.
You must use ITR-U along with the applicable ITR form (e.g., ITR-1, ITR-3, etc.) when filing an Updated Return.
For Revised Return, you should use the same ITR form that was applicable when filing your original return.