Revised Return Sec 139(5) : Non-Disclosure of Income

Revised Return under Section 139(5) means filing an income tax return once again to rectify errors and omissions made while filing the original income tax return. The income tax department receives information about the assessee’s income from different sources. This includes information from TDS Returns, Form 26AS, Form 16, GST Returns etc. Once you file your Income Tax Return, the income tax department reviews the ITR with its available information. If there is any discrepancy, you may receive a notice from the income tax department for non-disclosure of income. If you receive a notice for Non-disclosure of Income, you should rectify the error and file a Revised Return under section 139(5).

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Example: Here are a few instances of Non-Disclosure of income:

  • Interest income from a savings bank account
  • Interest income from a fixed deposit account
  • Profit from an investment made in name of a family member (clubbing provision)
  • Income from trading in equity, derivatives, commodity, currency etc
  • Exempt Income like dividend income, PPF interest, agriculture income, etc
  • Foreign Income and Foreign Assets

File Revised Return to report income under Non-Disclosure of Income in original ITR

  1. Download Utility

    Firstly, download the latest java or excel utility of the applicable ITR from the income tax e-filing website.

  2. Open the .XML file

    Open the .xml file of the original return in the utility.

  3. Tab – Part A General

    Under the tab ‘Part A – General’, move to section ‘Filing Status’. Enter the following details:
    a. Filed u/s – Select 139(5)-Revised Return
    b. If revised/defective/modified enter Receipt No – Enter the Acknowledgement Number of ITR-V of the Original Return
    c. Date of filing original return (DD/MM/YYYY) – Enter the date on which the original return was filed

  4. Report Income

    Report the income under the relevant schedule of ITR
    a. Interest income from savings bank account – Schedule OS > 1bi > Interest from Savings Bank.
    b. Interest income from fixed deposit account – Schedule OS > 1bii > Interest from Deposit.
    c. Profit from investment made in name of a family member (clubbing provision) – Schedule SPI i.e. Income of specified persons.
    d. Income from trading in equity, derivatives, commodity, currency etc – Schedule BP or Schedule CG.
    e. Exempt Income like dividend income, PPF interest, agriculture income etc – Schedule EI i.e. details of exempt income.
    g. Foreign Income and Foreign Assets – Schedule FA i.e. Details of Foreign Assets and Income from any source outside India.

  5. Recalculate and Save

    Click on ‘Recalculate’ in the top row and then click on ‘Save’ to generate the XML.

  6. Upload XML

    Upload the XML on income tax website to file Revised Return u/s 139(5). Login to your account on income tax portal.
    Go to e-File > Income Tax Return, enter the required details, upload the XML and submit.

FAQs

What happens if I don’t respond to my income tax notice?

There is no way to reply after the time limit is over. The link for e-proceedings gets closed. If you do not respond to the notice within the allowed time limit, the income tax department will process the return after making an adjustment of the demand raised with the TDS credit available. They may also issue another notice to pay the outstanding demand. The assessee can submit a Condonation Request on the income tax portal to borrow time for filing Revised Return. They need to provide a valid reason for delay in filing ITR.

Can a Return Filed within the time extended by CBDT be revised?

Any Return which is filed within the extended period as mentioned u/s 119 whose is extended by the CBDT u/s 139(1) can be revised u/s 139(5).

How many times revised return can be filed?

A revised return can be filed any number of times before the end of Assessment Year or up to the end of the assessment year or before assessment by the department is completed; whichever event takes place earlier.

File Revised Return : Loss Disallowed on Filing Belated ITR

The assessee who files his/her income tax return after the due date mentioned under section 139(1), cannot carry forward the loss. However, if they still file a Belated Return with carry forward loss, they will a receive a notice under disallowed loss claimed in ITR. The assessee should rectify the error of the disallowed loss and file a Revised Return under section 139(5).

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Example

  • ITR Due Date for FY 2016-17 (AY 2017-18) in case of tax audit: 30th September 2017 extended to 7th November, 2017
  • Assessee has incurred loss of INR 9462 from trading in equity shares
  • Assessee filed income tax return on 8th November, 2017. It is thus a Belated Return
  • The income tax department issues a notice u/s 143(1)(a)(iii) i.e. Disallowance of loss claimed in ITR
  • The assessee should file a revised return after rectifying the error or mistake made in the ITR

Prepare and File Revised Return to Remove Carry Forward Loss in Belated Return

  1. Download Utility

    Firstly, download the latest java or excel utility of the applicable ITR form income tax e-filing website.

  2. Open the .XML file

    Open the .xml file of the original return in the utility.

  3. Tab – Part A General

    Under the tab ‘Part A – General’, move to section ‘Filing Status’. Enter the following details:
    a. Filed u/s – Select 139(5)-Revised Return
    b. If revised/defective/modified enter Receipt No – Enter the Acknowledgement Number of ITR-V of the Original Return
    c. Date of filing original return (DD/MM/YYYY) – Enter the date on which the original return was filed

  4. Schedule CFL

    Under the tab ‘Schedule CFL – Details of Losses to be carried forward to future years’, remove the entry of previous year loss if the ITR for that year is filed after the due date.
    Based on the above notice, remove the entry of loss of AY 2017-18 since ITR was filed on 15/11/17 i.e. after the due date of 07/11/17

  5. Recalculate and Save

    Click on ‘Recalculate’ in the top row and then click on ‘Save’ to generate the XML.

  6. Upload XML

    Upload the XML on income tax website to file revised return. Login to your account on income tax portal.
    Go to e-File > Income Tax Return, enter the required details, upload the XML and submit.

FAQs

What happens if I don’t respond to my income tax notice?

There is no way to reply after the time limit is over. The link for e-proceedings gets closed. If you do not respond to the notice within the allowed time limit, the income tax department will process the return after making an adjustment of the demand raised with the TDS credit available. They may also issue another notice to pay the outstanding demand.
The assessee can submit a Condonation Request on the income tax portal to borrow time for filing Revised Return. They need to provide a valid reason for delay in filing ITR.

Revised Return due to TDS Mismatch

Once the assessee files the Income Tax Return, the income tax department may issue a notice for various reasons. One of these reasons is the difference in the amount of TDS as per Income Tax Return and TDS as per Form 26AS. Moreover, it reflects the gross amount of income, amount of TDS deducted and the section under which TDS is deducted. When there is a difference in the amount of income as per ITR and gross amount as per the Tax Credit Statement Form, you will receive a notice for the mismatch. The assessee should rectify the TDS mismatch and file a Revised Return under section 139(5).

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Example

  • Salary Income as per Schedule S of ITR = INR 16,25,274
  • TDS under Sec 192 as per Tax Credit Statement = INR 16,44,874
  • The difference in the gross amount as per Tax Credit Statement and the Salary as per ITR = INR 19,600
  • You will receive notice u/s 143(1)(a)(vi) for the error – Mismatch in Form 16/26AS/16A and ITR
  • If you agree to the mismatch, you must file revised return under section 139(5) after rectifying the error or mistake made in the ITR

Prepare and File Revised Return for TDS mismatch

Given below is the procedure to file the revised return for mismatch in TDS:

  1. Download Utility

    Therefore, download the latest java or excel utility of the applicable ITR form the income tax e-filing website.

  2. Open the .XML file

    Open the .xml file of the original return in the utility.

  3. Tab – Part A General

    Under the tab ‘Part A – General’, move to section ‘Filing Status’. Enter the following details:
    a. Filed u/s – Select 139(5)-Revised Return
    b. If revised/defective/modified enter Receipt No – Enter the Acknowledgement Number of ITR-V of the Original Return
    c. Date of filing the original return (DD/MM/YYYY) – Enter the date on which the original return was filed

  4. Schedule Salary

    Under the tab ‘Schedule S’, enter the Salary details with the breakdown of Basic Salary, Allowances, Perquisites, Exempt Allowances, Entertainment Allowance and Professional Tax

  5. Schedule TDS

    Under tab ‘TDS’, move to sections TDS1 i.e. Details of Tax Deducted at Source from Salary [As per Form 16 issued by Employer(s)]. Edit the details of TDS – enter the gross amount as per the Tax Credit Statement in column 4 (income chargeable under Salaries)

  6. Recalculate and Save

    Click on ‘Recalculate’ in the top row and then click on ‘Save’ to generate the XML.

  7. Upload XML

    Upload the XML on the income tax website. Login to your account on the income tax portal.
    Go to e-File > Income Tax Return, enter the required details, upload the XML and submit.

FAQs

What happens if I don’t respond to my income tax notice?

There is no way to reply after the time limit is over. The link for e-proceedings gets closed. If you do not respond to the notice within the allowed time limit, the income tax department will process the return after making an adjustment of the demand raised with the TDS credit available. They may also issue another notice to pay the outstanding demand.
The assessee can submit a Condonation Request on the income tax portal to borrow time for filing Revised Return. They need to provide a valid reason for the delay in filing ITR.

How do I correct a tax credit mismatch?

In case you received a notice from the Income Tax Department regarding a Tax Credit Mismatch, you will need to respond to it through the e-Filing portal by choosing the ‘Taxpayer is correcting data for Tax Credit Mismatch only’ under the options and fill in the relevant details.

Sec 139(5) : Revised Return under Income Tax

Revised Return under section 139(5) means filing an income tax return once again to rectify errors and omissions made while filing the original income tax return. You can file a Revised Return if you discover a mistake made in filing your original ITR. Further, if the income tax department issues a notice for any errors made in the ITR, you need to file a Revised Return. It is important to e-verify the Revised ITR within 120 days of filing. You can file a Revised Return from your account on www.incometaxindiaefiling.gov.in. To file your ITR using the help of a Chartered Accountant, refer to the plans below.

ITR for Salaried Individuals
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Points to keep in mind before filing Revised Return u/s 139(5) in Income Tax

  • Revise Return substitutes the original return once it is filed
  • Do not forget to e-verify your revised income tax return
  • Enter acknowledgment number of ITR-V and date of filing of the original return
  • If you filed your return after the due date, it is a belated return. Up to AY 2017-18, it was not allowed to revise belated return. However, AY 2018-19 onwards, a belated return can also be revised
  • You can file Revise Return even if the return has been processed

When do you file a Revised Return under Sec 139(5)?

Revising on your own

  1. To rectify errors or mistakes made in the original Income Tax Return
  2. To disclose income or information not reported in the original Income Tax Return

Example

  • To rectify personal details like residential status, address details, bank details, aadhar number, email or mobile, nature of business code, etc
  • If you have filed ITR using wrong ITR Form
  • If you have missed reporting any additional income, foreign income or foreign asset
  • When a wrong deduction has been claimed in the original ITR filed

Revising in response to a notice

  1. If the assessee agrees to a mismatch in the notice for proposed adjustment under Sec 143(1)(a)

2. When the assessee pays outstanding demand as per Sec 143(1) and then files a Revised Return

Example

  • If you file a belated income tax return with carrying forward loss, you will receive a notice under sec 143(1)(a)(iii). To resolve this, you should file a Revised Return after rectifying the error.
  • When there is a difference in the amount of income as per ITR and gross amount as per Form 26AS, you will receive a notice under sec 143(1)(a)(vi). To resolve this, you should file a Revised Return after rectifying the error.

Due Date to file Revised Return under Income Tax

As per the Income Tax Act, a Revised Return can be filed up to the end of the assessment year or before completion of the assessment, whichever is earlier. This means that an assessee can file a revised return up to one year from the end of the financial year.

Note: AY 2018-19 onwards, the time limit to file a revised return was reduced. Thus, the due date was:
AY 2018-19 onwards – by the end of relevant the Assessment Year
Up to AY 2017-18 – within 1 year from the end of the relevant Assessment Year

Example

  • For Income Tax Return of FY 2018-19 (AY 2019-20):
    • End of Assessment Year is 31.03.2020
    • Therefore, you can file Revised Return for FY 2018-19 up to 31st March 2020
  • For Income Tax Return of FY 2016-17 (AY 2017-18):
    • End of Assessment Year is 31.03.2018
    • One year from the end of Assessment Year is 31.03.2019
      Therefore, You can file Revised Return for FY 2016-17 up to 31st March 2019

How to file Revised Return u/s 139(5)?

You can file a Revised Return from your account on the income tax website.

  • Login to your account on incometaxindiaefiling.gov.in
  • Go to e-File > Income Tax Return
  • Enter the required details
  • Upload the XML
  • Submit

Here is the stepwise process to file Revised Return on the Income Tax website.

Year Can I revise Belated Return? Time Limit to file Revised Return
FY 2016-17
AY 2017-18
No Belated Return cannot be revised
FY 2017-18
AY 2018-19
Yes By end of Assessment Year i.e. up to 31/03/2019
FY 2018-19
AY 2019-20
Yes By end of Assessment Year i.e. up to 31/03/2020. Due to Covid-19, it was extended to 30th November 2020.

FAQs

Can I file a Revised Return for a Belated Return filed after the due date?

Yes. As per the amendment in Budget 2016, you can now file Revised Return u/s 139(5) for a Belated Return u/s139(4) from AY 2018-19. Here is an example.

How many times can a revised return be filed?

A return can be revised any number of times before the expiry of one year from the end of the assessment year or before the assessment by the department is completed, whichever event takes place earlier.

Can I file a Revised Return after the original ITR is processed?

Yes, you can file a revised ITR before the due date, even when your original ITR is processed and tax refund is issued (in case you were eligible for a tax refund).

How to deal with income tax department notice?

It is very common to receive a notice from the Income Tax Department. These notices create a sense of panic amongst assessees. But to say the least, a lot of such notices are sent in the normal course of processing tax returns. It might be for routine inquiry or a request for clarification. So there is absolutely no need to panic in the first place.

Steps to deal with Income Tax Notice

  1. Don’t ignore the notice

    A lot of these notices can be attended by sincere communication. If you ignore it, you might end up paying penalty along with your income tax payments.

  2. Check the notice for your basic details

    Check PAN name, assessment year, assessing officer and income tax ward details. Make sure that the notice is intended for you only.

  3. Preserve the notice

     Whether received physically or via email preserve it. Because the notice contains the date of order and/or communication for further communication with the IT Department.

  4. Identify the reason for the notice

    In most of the cases, you would be able to identify the reason just by casually reading it. These reasons could be a mismatch in TDS or defect in return etc.

  5. Check the validity of the notice

    There are certain time limits prescribed by the IT department, subject to which any notice can be issued by the department. Check a section mentioned in the notice in pursuance of which the notice has been issued. For example, a notice under section 143(3) for scrutiny assessment has to be served within six months of the end of the financial year in which the return was filed. So, if the notice is served later than this period, it will be considered invalid.

  6. Provide Supporting

    The department would ask you to provide the supporting to support your defense. So the best way to respond to notice is with the help of supporting documents.

  7. In time response

    Even if you are unable to gather all the supporting documents, you should write the same to the office.

  8. Take professional help

    In case of serious matters involving scrutiny assessment, income concealment, etc take professional help from a Chartered Accountant.

Income Tax Notice Plan for Individuals
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Income Tax Notice Plan for Individuals
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Common reasons for Notice and their resolution

 

Section Reason for Notice Probable resolution
139(9)

For filing a defective return

Identify the defect mentioned in “Annexure A” and submit a return in response to the notice of defective return u/s 139(9)

142

For not filing the income tax return or for the scrutiny of a documents & accounts in support of the return filed.

File the return within the time limit mentioned in the notice.

Submit a proper response if you are not required to file a return.

Present before assessing officer with books of accounts and supporting documents if demanded by Assessing Officer.

143(1)

For adjustment or additional tax demand if an error or incorrect information is detected in the return. 

Pay outstanding tax dues if any.

Correct the errors and file rectification return u/s 154 if required.

143(2)

For scrutiny assessment after a detailed inquiry by assessing officer.

Your case has been selected for scrutiny and you should provide all the relevant information, pieces of evidence as demanded by IT authorities.

148

For reassessment, if the officer believes some income has escaped assessment.

Provide all the relevant information, evidence as demanded by IT authorities.

156

For dues (tax, interest, penalty, fine or any other sum) payable by the assessee)

 

 

Submit a response to a notice from e-filing account.

Pay tax if you agree.

Provide a reason if you don’t agree with the demand.

245

For adjustment of a refund with any demand due

Your refund has already been adjusted against outstanding tax demand so no further action required.

FAQs

What is section 131(1A), and what are reasons to get notice u/s 131(1A)?

Assessing Officer is of the opinion that tax payer are concealing the income or likely to conceal income then tax payer will receive notice u/s 131(1A). This notice is basically intimation that AO is initiating an enquiry or investigate into the matter. The AO should expect the attendance of tax payer and books of accounts, statement of all bank accounts, details of all properties acquired during the financial year.

What is scrutiny assessment u/s 143(3)?

This is a detailed assessment and is referred to as scrutiny assessment. The scrutiny is carried out to confirm the correctness and genuineness of various claims, deductions, etc., made by the taxpayer in the return.

How do I respond to an income tax notice?

Login to your account on the e-filing website by entering your credentials: User ID (PAN), password, and captcha code.
Click on the ‘e-file’ tab and select ‘Response to outstanding Tax Demand’ option.