Authenticate Notice Issued by ITD

The Authenticate Notice/Order issued by Income Tax Department service is available to both registered and unregistered users of the e-Filing portal as a pre-login service to verify the authenticity of a notice, order, summons, letter or any correspondence issued by Income Tax Authorities.

Process to Authenticate Notice/Order Issued by ITD

  1. Visit the e-Filing portal

    Go to the e-Filing portal and scroll down and click on Authenticate Notice / Order issued by ITD.

  2. Select from the options provided to authenticate the notice/order

    Following are the options provided:
    PAN, Document type, Assessment Year, Date of Issue and Mobile Number
    – Document Identification Number and Mobile Number

  3. Selecting the first option

    Select PAN, Document type, Assessment Year, Date of Issue and Mobile Number.

  4. Enter the required details

    Next, enter the details in the PAN, select the document type and assessment year, enter mobile number and date of issuance and click on continue.

  5. Enter OTP

    Enter the OTP received after the completion of step 2.

  6. Validation of OTP

    Once the OTP is validated, the document number of the notice issued along with the date of issue of the notice will be displayed.
    * In case  no notice was issued by ITD, it will display a message – No record found for the given criteria

  7. Selecting the Second Option

    Select Document Identification Number and Mobile Number.

  8. Enter the required details

    Next, enter the document identification number and mobile number and click on continue.

  9. Enter OTP

    Finally, enter the OTP received after the completion of step 2.

  10. Success Message

    You will receive the following message after the completion of the procedure.

FAQs

Why do I need to authenticate notice/order issued to me by Income Tax Authorities?

Every communication by ITD issued on or after 1st October, 2019 shall bear a unique Document Identification Number (DIN). In order to satisfy yourself that the notice/order or any communication received by you is genuine and issued by Income Tax Authority, you can authenticate any notice/order or any communication using this service.

What if the ITD notice/order does not bear a DIN?

In such case, the notice/order/letter received by you would be treated as invalid and shall be non est in law or deemed to be as if it has never been issued. You do not need to take any action or respond to such communication.

Do I need to enter the same mobile number as registered on the e-Filing portal to authenticate my notice?

No, it is not mandatory to enter the mobile number registered on the e-filing portal to authenticate the notice/letter or any communication issued by Income Tax Department. You may choose to receive OTP on any mobile number which is accessible to you by entering it in the ‘mobile number’ field.

Demand Notice under section 156 of Income Tax Act, 1961

What is the Outstanding Tax Demand Notice Taxpayers receive u/s 156?

The assessee may receive a outstanding tax demand notice under section 156 of Income Tax Act. This notice specifies the amount payable if the assessing officer raises any demand for tax, interest, penalty, fine, or any other sum as per the provision of Income Tax Act, 1961. Notice for sum payable u/s 143(1), 200A (1), 206CB (1), etc., shall be deemed to be Demand Notice u/s 156. Assessee has to pay the amount specified in the notice within 30 days of receipt of the notice. The only prerequisite to submit a response to such a notice is to be registered as a taxpayer on the e-Filing portal. A Registered user can submit a response from the portal itself.

Response to Outstanding Tax Demand Notice under section 156 of Income Tax Act

For submitting the response there are three options available with a taxpayer as below:

  • Demand is correct
  • Demand is partially correct
  • Disagree with demand

How to Respond to Outstanding Tax Demand Notice?

  1. Login to Income Tax Portal

    Login to the e-Filing portal using your user ID and password.

  2. Response to Outstanding Demand

    Click Pending Actions > Response to Outstanding Demand to view a list of your outstanding demands from the dashboard.

  3. Pay Now

  4. Submit Response

    On the Response to Outstanding Amount page, click Submit Response to submit a response to an outstanding demand. 

  5. Option 1 – Submit response if Demand is correct and you have not paid already

    On the Response to Outstanding Amount page, select the Demand is Correct option and the disclaimer Once you submit the response as Demand is correct, then you cannot Disagree with Demand later on. Moreover, On the same page, select Not paid yet option and click Pay Now

  6. Successful Payment

    On successful payment, a success message is displayed along with a Transaction ID.

  7. Option 2 – Submit response if Demand is correct and you have paid already

    On Response to Outstanding Amount page, select the Demand is Correct option and the disclaimer Once you submit the response as Demand is correct, the you cannot Disagree with Demand later on.

  8. Enter Required Details

    Select Yes, Already paid and Challan has CIN. Click Add Challan Details.

  9. Add Challan Details

    To add the challan details, select Type of Payment (minor head), enter Challan Amount, BSR Code, Serial Number and select Date of Payment. Click Attachment to upload the copy of the challan (PDF) and click Save.

  10. Submit the Response

    After entering the Challan details, click Submit to submit the response and the details of challan entered. On successful validation, a success message is displayed along with a Transaction ID. Please keep a note of the Transaction ID for future reference.

  11. Option 3 – Submit response if you Disagree with the demand (Either in full or in Part)

    On Response to Outstanding Amount page, select Disagree with the demand (Either in full or in Part) option. Click Add Reasons. 

  12. Select Reason for Disagreement

    To select the reason(s) for your disagreement, select from the options and click Apply. (You can select one or more options)

  13. Enter Details

    After selecting the appropriate reasons for your disagreement, select each reason you listed on the Response to Outstanding Amount page and enter the appropriate details for each reason.

  14. Pay if you Partially Disagree

    After submission of details for all the reasons listed, click Pay Now to pay the remaining outstanding amount available in the payment summary (if you partially disagree). After payment, you will be taken to the Response to Outstanding Amount page, click Submit to submit your response.

  15. Confirm Submission

    Click Confirm to confirm your submission. On successful submission, a success message is displayed along with a Transaction ID. Please keep a note of the Transaction ID for future reference.

Time limit to respond

As per Section 220, amount shall be paid within a period of 30 days from the date of service of notice. However, in some cases, time period of 30 days may be reduced by the assessing officer with prior approval of joint commissioner.

An assessee can also make an application to the AO to extend the time for payment or allow payment by installment, provided application should be made before expiry of thirty days.

Check Responded Submitted Response of Outstanding Tax Demand

  • Login to the e-Filing portal
  • Click on Services > Response to Outstanding Demand from the dashboard
  • On the Response to Outstanding Demand page, enter the PAN of the assessee and click on the option to search
  • From the list of responses submitted by the assessee whose PAN you entered, click View on the particular notice to view the response submitted by the assessee

Consequences of delay

  • Interest u/s 220(2) – Interest at a rate of one percent per month or part of the month will be payable after the expiry of 30 days. Such interest shall be payable by the assessee even if the AO has approved the application for an extension of the time period.
  • Penalty u/s 221 – AO can impose a penalty up to the amount of demand in the demand notice. Provided, a reasonable opportunity of being heard is given to the assessee. If the assessee proves that the default was for good and sufficient reasons, no penalty shall be levied.

FAQs

What will happen if I disagree with a tax demand notice?

If the assessee disagrees with the tax demand notice then he can challenge the same to the next higher authority.

Where can I find my demand notice online?

You can log in to the Income Tax Site and then select the option “Respond to Outstanding Tax Demand” in the e-File tab, and you can check the tax demand notice.

What is the meaning of assessee in default?

If the assessee does not pay the amount specified in the demand notice within 30 days of service of notice then the assessee becomes assessee in default.

Why do I need to submit response to an outstanding demand?

The Income Tax Department may find some Outstanding Tax demand against your PAN. In order to confirm if the stated demand is correct, an opportunity is given to you to respond. If you do not respond to it, the demand will be confirmed and will be adjusted against your refund (if any) or show as demand payable against your PAN ( in case, no refund is due).

What if I do not have the copy of the challan to be attached? Where can I find it?

You can reprint / regenerate your challan from your respective bank account using Net Banking or visiting the bank branch.

Notice Under Section 148 of the Income Tax Act, 1961

Section 148 stands for the reassessment of income escaping assessment. The Assessing Officer could pick income tax return for reassessment by sending a notice under section 148 subject to some pre-defined criteria for income Escaping Assessment.

Issuance of Notice under Section 148

There are various reasons as well as terms and conditions under section 148 for the issue of Notice as follows:-

Before issuing any notice u/s 148 the assessing officer must have reason to believe that any income chargeable to tax has escaped assessment along with the strong evidence. Without any proof, the officer can’t produce a notice based on mere suspicion.

There must be a direct nexus between the material coming to the notice of the assessing officer and the belief of AO that there has been escapement of income.

The material for formation of belief must be relevant and not vague based on any superficial reasoning and understanding.

The assessing officer must record reasons in writing before issuing notice under section 148. Merely a change of opinion cannot constitute a reason to believe. 

Mere a reason recorded that there is concealment of income without any specific evidence or material will not constitute a valid reason as it is vauge.

The Assessment officer cannot issue a notice based on the facts and information gained by reading the documents and information that assessee has already submitted during the course of the assessment.

The Assessing Officer can only issue a notice if and only if he/she has been presented with the new information and not by reading it by himself/herself.

If any fact or information arises, which has been disclosed previously relevant to the assessment in question, the assessing officer can immediately issue a notice under Section 147/148, even if the information has come to notice in a later period.

Who can issue a notice under Section 148

As per section 148 of the Income Tax Act 1961, the following persons can issue a notice to the assessee who has escaped assessment or reassessment of taxable income under the following conditions:-

  • Assessing Officer who ranks below the rank of Assistant Commissioner or Deputy Commissioner cannot issue a notice under Section 148. AO can issue notice only if Joint Commissioner is satisfied, on reasons recorded by such AO, that it’s a fit case for issuing such notice.
  • AO cannot issue notice to associate assessee following the expiration of a four-year period from the conclusion of the assessment year in question. Unless the Chief Commissioner is satisfied that the explanations given by the Assessing Officer are valid enough for the sending of a notice to the assessee.

Time limit to issue a notice under Section 148

As per section 149 of the Income Tax Act, If the income escaped doesn’t exceed INR 1 lakh the notice under section 148 can be issued within a period of 4 years from the end of the relevant AY (assessment year).

If the income escaped is more than INR 1 lakh the notice under the said section can be issued within a period of 6 years from the end of relevant AY subject to provisions contained in section 151.

If the income escaping assessment relates to assets located outside India the notice under section 148 can be issued within a period of 16 years from the end of the relevant AY.

Further, if an assessment has been completed under section 143(3) or 147 no further action can be taken under section 147 after the expiry of 4 years from the end of relevant AY unless income chargeable to tax has escaped assessment for such AY due to failure on assessee’s part to file the return under section 139 or 142 or 148 or fully and truly disclosing all the material facts required for the assessment for that AY.

Replying to notice under Section 148

In case assessee receives the notice under section 148, he should follow the below-mentioned pointers:

Firstly, check the notice for reasons to believe which are recorded by the assessing officer for issuing the notice under section 148. If the notice doesn’t include the reasons, then the assessee can request the assessing officer to send a copy of the recorded reasons.

In case the assessee is satisfied with the reasons recorded by the assessing officer, he/she should file the return at the earliest. If the return is already filed, he/she send the copy to the assessing officer.

In case the assessee files the income tax return in response to notice issued under section 148, it is necessary to ensure that the assessee files it carefully by declaring all the incomes and expenses to avoid unnecessary penalties.

Assessee can challenge the validity of notice before the assessing officer or higher authorities if notice isn’t served validly or reasons provided for opening assessment under section 147 aren’t proper. However, in case the decision doesn’t go in favour of the assessee, then the assessing officer could proceed with the reassessment.

FAQs

What assessee needs to do after receiving notice under section 148?

The assessee needs to produce the details of his/her income tax returns within 30 days duration that has been specified by the assessing officer in the notice given.

Who can issue a Notice under Section 148?

Assessing Officer currently who does not ranks below the rank of Assistant Commissioner or Deputy Commissioner can issue a notice under Section 148.

What happens if the assessing officer does not files his IT return after receiving notice u/s 148

The assessee shall be liable to pay interest under Section 243(3) for late filing of Income Tax return or for not filing of Income Tax return,

Notice under section 143(2) of Income Tax Act, 1961

Notice under Section 143(2) of the Income Tax Act is the second chance to assessee after Income Tax Department find major or minor discrepancies in the tax return. The discrepancy can be in the form of under-reporting the income or over-reporting of the losses. On receipt of a notice, an individual must timely respond to the tax department along with the supporting proof to defend themselves.

Reasons for issuance of notice u/s 143(2)

Income Tax Department issues notice u/s 143(2) when Income Tax Return is selected for scrutiny assessment or detailed assessment u/s 143(3).

Scrutiny assessment or detailed assessment u/s 143(3) means scrutiny carried out to confirm the correctness and genuineness of various claims, deductions, etc made in Income Tax Return. The basic purpose of this scrutiny assessment is to ensure that assessee has filed the return with the correct income and paid the tax accordingly.

Time limit for issuance of notice u/s 143(2)

AO can issue notice u/s 143(2) for scrutiny assessment only up to a period of six months from the end of the financial year in which the assessee filed his return.

For example, Ms. X filed her return on 25.07.2020 for the financial year 2019-20. In such a case, the notice u/s 143(2) AO can issue notice to Ms. X only up to 30.09.2021 being the end of six months period from the FY 2020-21 in which the said return was filed.

Types of notices u/s 143(2) of Income Tax Act

There can be 3 types of following notices under Section 143(2): 

Limited Scrutiny: This is a Computer-Assisted Scrutiny Selection (CASS) where cases are selected based on set parameters. The scrutiny will be limited to the particular area of return mentioned in the notice. An example of this scrutiny can be a mismatch in tax credits, inaccurate information, etc.

Complete Scrutiny: A complete scrutiny is carried out on the return filed along with all supporting documents. Cases are flagged based on CASS. Scope of scrutiny is not limited in these types of notices. However, the assessing officer cannot verify documents beyond the particular assessment year. 

Manual Scrutiny: Cases are selected for complete scrutiny based on the criteria defined by the Central Board of Direct Taxes; the criteria may vary every year.

How does this works?

AO can issue notice u/s 143(2) within 6 months from the end of FY in which the assessee filed his return, to carry out scrutiny of income tax return u/s 143(3).

The assessee or his tax representative will have to appear before the AO to place arguments and pieces of evidence as required by the assessing officer. Alternatively, the assessee can submit an online response to notice u/s 143(2) by uploading evidence and your arguments.

After looking over to all the evidence, AO will pass an assessment order determining total tax payable or refund to the assessee after taking into account produced evidence.

Time limit for issuance of the final assessment order u/s 143(3)

Time Limits are as below as per section 153

* For Assessment year 2017-18 or before 21 months from the end of the assessment year
* For Assessment year 2018-19 18 months from the end of the assessment year
* For Assessment year 2019-20 and onwards 12 months from the end of the assessment year

Consequences of not complying with the notice issued u/s 143(2)

If the assessee receives a notice from the Income Tax Department, and there is any default, he/she may be liable for the following:

  • Penalty u/s 271(1)(b) amounting to Rs. 10,000 and even prosecution if found guilty. However, for the A.Y commencing on or after the 1st day of April 2017 the penalty shall be levied in Sec 272A(1).
  • AO can do the best judgment assessment u/s 144 for the assessee.

FAQs

Is it possible to receive notice u/s 143(2) if I have not filed my return?

No it is possible to receive notice u/s 143(2) if I have not filed return. You might receive a notice u/s 142(1) asking for filing the return.

How will I receive this notice u/s 143(2)?

Generally, you will receive this notice via email in a PDF format on your email ID. You will also receive this notice at your postal address.

What is the final order u/s 143(3)?

If AO issues notice u/s 143(2) for production of evidence and after taking into account such pieces of evidence and hearing the arguments, the AO will make an assessment of total income or loss and also determine any sum payable by assessee or due to assessee by passing the order u/s 143(3).

Notice under section 142(1) of Income Tax Act, 1961

Notice under section 142(1) of the Income Tax Act, 1961 is to call for further details and documents from the assessee after filing the return. This notice can also be sent to require him to file his return where he has not yet furnished it. This notice is issued when information is missing from the taxpayer’s end.

Purpose of Notice under section 142(1) of Income Tax Act

Notice u/s 142(1) can be issued by the Income Tax Department for the following reasons:

1. To ask the assessee to file the Income Tax Return: If the assessee has not filed a return within the specified period of time or before the end of the relevant assessment year, then the assessee might receive notice u/s 142(1) asking to file the return.

2. Producing specific accounts and documents: If the assessee has already filed an income tax return, the Assessing Officer (AO) may ask assessee to produce such specific accounts and documents as required by him by way of Notice u/s 142(1). For example, assessee might need to produce your purchase books, sales books, or proofs of any deductions, etc.

3. Any other information, notes, or workings as desired by the AO: Assessing Officer may require the assessee to furnish in writing and in the prescribed manner the information, notes, or workings on specific points as required by him which may or may not form the part of books of accounts. For example, A statement of assets and liabilities.

Penalty for non-compliance of Notice under section 142(1)

Failure in compliance with the Section 142(1) Tax Notice may result in Best Judgment Assessment by assessing officer u/s 144. Further, the penalty includes:

  • Imposition of penalty of Rs 10,000 for each failure u/s 271(1)(b) or;
  • Prosecution under section 276D may extend up to 1 year with or without fine.
  • A warrant may also be issued u/s 132 for conducting the search.

FAQs

What do I do when I receive a 142(1) notice from the income tax department?

When notice is for filing of return, an assessee should file his return within the time period in the notice and if documents and details asked to produce and then give the same to A.O. within the specified period.

What can I expect after the submission of my ITR u/s 142(1)?

Your return will be sent for processing. If everything looks good to AO, No further action is required. Also, there are changes of notice under section 143(2) for scrutiny assessment if any information is doubtful to AO as per the documents and information submitted by you.

How to respond to this notice?

You need to respond to notice in the manner which is mentioned by AO

Notice for Non-filing of Income Tax Return: Submit Response on E-Compliance Portal

If you miss the due date for filing an income tax return, you will receive a notice from the IT Department. The Due Date to file Original Income Tax Return under Sec 139(1) is 31st July from the end of the financial year if tax audit is not applicable. However, the due date is 30th September from the end of the financial year if the tax audit is applicable. Additionally, the Due Date to file a Belated Return under Sec 139(4) or Revised Return under Sec 139(5) is 31st March i.e. one year from the end of the financial year. If the ITR has not been filed within the Due Date, then the Income Tax Department would send out emails and SMS to the Non-Filers. For FY 2018-19 (AY 2019-20), ITD sent SMS to multiple taxpayers for not filing ITR.

For example, here is a snapshot of SMS sent to taxpayers for not filing Income Tax Return:

Under the Non-Filers Monitoring System (NMS), the Income Tax Department captures information relating to the financial transactions of the taxpayers through the information reported under AIR (Annual Information Return), CIB (Central Information Branch) data or TDS/TCS Returns. Hence, on the basis of this information, the ITD issues notice to the non-filers of ITR with potential tax liability.

Still need to file your ITR?
Don't worry, our experts can you help you do this.
[Rated 4.8 stars by customers like you]
Still need to file your ITR?
Don't worry, our experts can you help you do this.
[Rated 4.8 stars by customers like you]

Annual Information Return (AIR)

Annual Information Return is a return submitted by specified entities to the income tax department. This is to report the ‘high valued transactions’ of Individuals and HUFs. For example:

  • AIR-001: Cash deposits of Rs. 10,00,000 or more in a year in a savings bank account
  • AIR-002: Credit Card Bills of Rs. 2,00,000 or more
  • AIR-003: Mutual Fund Investment of Rs. 2,00,000 or more
  • AIR-004: Investment in Bonds or Debenture of Rs. 5,00,000 or more
  • AIR-005: Investment in shares of Rs. 1,00,000 or more
  • AIR-006: Purchase of Immovable Property valued at Rs. 30,00,000 or more
  • AIR-007: Investment in RBI Bond of Rs. 5,00,000 or more

Therefore, in the case of taxpayers who have not filed their Income Tax Return and have significant financial transactions reflecting on the e-Compliance Portal, the ITD has taken the following actions:

  1. Sent SMS for Non-Filing of Income Tax Return
  2. Raised query to confirm the information on e-Compliance Portal

Action to be taken for Income Tax Non-Filing Notice

Taxpayer who has received a notice for non-filing of the Income tax return through an SMS should take the following actions:

  1. File Income Tax Return or Submit Response

    a. Login to your account on incometaxindiaefiling.gov.in
    b. Go to Compliance > Compliance Portal
    c. Click on e-Campaign
    d. Under e-Campaign – Non-Filing of Return, click on Financial Year
    e. Under e-Campaign – Response on Filing of Income Tax Return, click on Financial Year
    f. Select Response from the dropdown, select Reason and Mode of filing.
    g. Enter Date, Acknowledgement Number and Remarks
    Click on Submit.

  2. Next, you will need to confirm the information provided.

    a. Login to your account on incometaxindiaefiling.gov.in
    b. Go to Compliance > Compliance Portal
    c. Click on e-Campaign
    d. Under e-Campaign – Non-Filing of Return, click on Financial Year
    e. Under e-Campaign – Information Confirmation, click on Financial Year
    f. Click on the tab, select the transaction and choose the correct option to validate the information.

FAQs

What is the due date for filing Late/Belated ITR?

The Due Date to file a Belated Return under Sec 139(4) or Revised Return under Sec 139(5) is 31st March i.e. one year from the end of the financial year.

Which Form do I need to submit for AIR notice?

AIR can be furnished through Form 61A (Part B) in a digitized form in a CD/Floppy. While Form 61A (Part A) in a paper format duly signed.

What is STT?

Securities Transaction Tax (STT) is a type of financial transaction tax that is similar to Tax Collected at Source (TCS). Therefore, STT is a direct tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India. 

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).

Review Income Tax Notice
Take help of an expert to review income tax notice and submit response on income tax e-filing portal
[Rated 4.8 stars by customers like you]
Review Income Tax Notice
Take help of an expert to review income tax notice and submit response on income tax e-filing portal
[Rated 4.8 stars by customers like you]

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).

Review Income Tax Notice
Take help of an expert to review income tax notice and submit response on income tax e-filing portal
[Rated 4.8 stars by customers like you]
Review Income Tax Notice
Take help of an expert to review income tax notice and submit response on income tax e-filing portal
[Rated 4.8 stars by customers like you]

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
[Rated 4.8 stars by customers like you]
Review Income Tax Notice
Take help of an expert to review income tax notice and submit response on income tax e-filing portal
[Rated 4.8 stars by customers like you]

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
CA Assisted Income Tax Return filing for individuals having salary, Rental income from one house property & income from other sources.
[Rated 4.8 stars by customers like you]
ITR for Salaried Individuals
CA Assisted Income Tax Return filing for individuals having salary, Rental income from one house property & income from other sources.
[Rated 4.8 stars by customers like you]

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).