I e-filed my income tax return for AY 2013-14 two days ago. I had some tax payable, which I reflected in my ITR-1 under the Tax payable section. I was not very clear about the process and assumed I could pay the tax after submitting my tax return. Hence, unknowingly, I uploaded my original XML on the website, which showed tax payable as ~Rs. 40K.
Just then, I got to know that I had to pay the outstanding tax beforehand and fill in the challan number of the self-assessment tax, which I had not.
Then I made the payment and filed a revised return immediately.
However, today when I showed my documents to a financial expert, he pointed out that I had missed/overlooked declaring 1/3rd of the total FD interest earned in FY 2012-13 in my Income from other sources section. I want to file the revised return with increased Income from other sources (including the missed out 1/3rd portion of interest) and also pay tax and submit the tax challan number for the same. But I am scared of what effect filing multiple revised tax returns will have.
Concerns About Filing Multiple Revised Returns
1. Will the IT department compare the revised return with the original return and analyze why the income in the revised return increased?
2. How will they assess if the return was revised to correct a bona fide mistake and the mistake was done unintentionally and was NOT DELIBERATE?
3. Will the revised return or filing multiple revised returns be susceptible to come under scrutiny compared to if the same return was filed originally?
4. If the revised return that I file with increased income comes under scrutiny, will scrutiny be restricted to finances pertaining to this AY 2013-14, or will they trace back all previous years too?
Please help me with these answers with your expert comments and valuable experience and knowledge.
From India, Bangalore
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Just then, I got to know that I had to pay the outstanding tax beforehand and fill in the challan number of the self-assessment tax, which I had not.
Then I made the payment and filed a revised return immediately.
However, today when I showed my documents to a financial expert, he pointed out that I had missed/overlooked declaring 1/3rd of the total FD interest earned in FY 2012-13 in my Income from other sources section. I want to file the revised return with increased Income from other sources (including the missed out 1/3rd portion of interest) and also pay tax and submit the tax challan number for the same. But I am scared of what effect filing multiple revised tax returns will have.
Concerns About Filing Multiple Revised Returns
1. Will the IT department compare the revised return with the original return and analyze why the income in the revised return increased?
2. How will they assess if the return was revised to correct a bona fide mistake and the mistake was done unintentionally and was NOT DELIBERATE?
3. Will the revised return or filing multiple revised returns be susceptible to come under scrutiny compared to if the same return was filed originally?
4. If the revised return that I file with increased income comes under scrutiny, will scrutiny be restricted to finances pertaining to this AY 2013-14, or will they trace back all previous years too?
Please help me with these answers with your expert comments and valuable experience and knowledge.
From India, Bangalore
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When filing revised income tax returns, it's crucial to ensure accuracy and compliance to avoid potential issues with the IT department. Here are insights to address your concerns:
1. The IT department may compare the revised return with the original to understand the increase in income. Transparency is key; ensure all changes are genuine and well-documented.
2. To demonstrate that revisions were due to unintentional errors, maintain clear records of the mistakes and corrections made. Providing explanations for the changes can help establish that they were not deliberate.
3. While revised returns may attract scrutiny, especially if multiple revisions are filed, the focus should be on rectifying errors. As long as the changes are legitimate, the scrutiny should not pose significant issues.
4. If your revised return undergoes scrutiny, the examination typically pertains to the specific assessment year (AY) in question. However, it's essential to have accurate records for previous years in case of any inquiries.
To navigate this process effectively, consider seeking guidance from a tax consultant or financial advisor to ensure compliance and address any complexities that may arise.
From India, Gurugram
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541. The IT department may compare the revised return with the original to understand the increase in income. Transparency is key; ensure all changes are genuine and well-documented.
2. To demonstrate that revisions were due to unintentional errors, maintain clear records of the mistakes and corrections made. Providing explanations for the changes can help establish that they were not deliberate.
3. While revised returns may attract scrutiny, especially if multiple revisions are filed, the focus should be on rectifying errors. As long as the changes are legitimate, the scrutiny should not pose significant issues.
4. If your revised return undergoes scrutiny, the examination typically pertains to the specific assessment year (AY) in question. However, it's essential to have accurate records for previous years in case of any inquiries.
To navigate this process effectively, consider seeking guidance from a tax consultant or financial advisor to ensure compliance and address any complexities that may arise.
From India, Gurugram
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
INCOME TAX DECLARATION 2008-09.xls