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).

Review Income Tax Notice
Take help of an expert to review income tax notice and submit response on income tax e-filing portal
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Review Income Tax Notice
Take help of an expert to review income tax notice and submit response on income tax e-filing portal
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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.