Income Tax Return Revision Time Limit: Can you revise ITR for AY 2022-23 now?

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Income Tax Return revision time limit and rules 2023: As the Income Tax Return (ITR) filing for AY 2023-24 has started, many taxpayers are wondering whether they can revise the returns filed in AY 2022-23 now. Here’s a quick look at whether it is possible.

According to experts at Taxmann, Section 139(5) of the Income Tax Act 1961 allows a taxpayer to file a revised return of income if he discovers any omission or error in the original return.

However, the revised return can be filed three months before the relevant assessment year end or before the completion of the assessment, whichever is earlier. This means you cannot file a revised return for AY 2022-23 now. But there is another provision in the Income Tax law through which taxpayers can file Updated returns after paying additional taxes.

Also Read: Income Tax Return processing AY 2023-24: When will you get refunds?

New option: ITR-U

The concept of updated return was introduced through The Finance Act 2022. It allows a allow a longer duration for an assessee to file the return of income.

“An updated return can be filed within 24 months from the end of the relevant assessment year (subject to certain conditions). An updated return can be filed even after the expiry of time limits specified for the filing of a belated return or revised return of income,” experts say.

Therefore, in the financial year 2023-24, a person can file an updated return for the assessment years 2021-
22 and 2022-23.

No penalty but additional tax

For filing an updated return (ITR-U), no penalty or fee is levied upon the taxpayer. However, s/he will have to pay an additional tax in accordance with Section 140B.

Taxmann experts say, “The additional tax shall be equal to 25% of the aggregate of tax and interest payable by a person on the filing of the updated return, where such return is furnished after the expiry of the due date of filing of belated or revised return but before completion of a period of 12 months from the end of the relevant assessment year.”

“Where the updated return is furnished after the expiry of 12 months from the end of the relevant assessment year but before completion of the period of 24 months from the end of the relevant assessment year, the additional tax payable shall be 50% of the aggregate of tax and interest payable,” they add.

Also Read: How to file Income Tax Return online: Complete Guide to e-file ITR by self for salaried

A fee under Section 234F can be charged if such a person did not furnish a return of income for that Assessment Year for which he is furnishing an updated return.

The due date to file ITR for AY 2023-24 is July 31, 2023 for taxpayers whose accounts don’t need to be audited.


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