Types of Return in Income Tax
Filing taxes doesn't have to be confusing or stressful, especially when you know there are different types of returns to help you stay on track. Whether you are filing for the first time, fixing a mistake, or catching up after missing a deadline, there’s a return for every situation. There’s the original return for timely filing, the belated return if you missed the deadline, the revised return to correct errors, and even an updated return if you need to make changes later on. In this article, we will help you understand more about the aforementioned returns and their differences.
Table of content
What are the Different Types of Return in Income Tax?
In the context of income tax, there are several types of returns that taxpayers can file based on the circumstances and timing of their filing. The Original Return is the first return filed by a taxpayer within the due date specified by the Income Tax Act. It reflects the taxpayer’s accurate financial details for the year. If a taxpayer misses the deadline for filing the original return, they can submit a Belated Return. This return is filed after the due date but before the end of the assessment year, although it may attract penalties and interest for late submission.
There may be instances where errors or omissions are discovered after the original or belated return has been filed. In such cases, the taxpayer has the option to file a Revised Return. This return allows taxpayers to rectify mistakes and must be filed before the completion of the relevant assessment year or before the assessment is completed, whichever is earlier.
Additionally, if the taxpayer needs to make further corrections after the deadline for revised returns has passed or if unreported income is discovered, they may file an Updated Return. The updated return can be filed within two years from the end of the relevant assessment year and is meant for those who need to report additional income not disclosed in earlier filings. Each of these types of returns allows taxpayers flexibility in compliance, ensuring that any inaccuracies can be addressed, even after the initial submission.
Who is Liable to File an Income Tax Return (ITR)?
Under the Old Regime:
Individuals below 60 years of age: Required to file an Income Tax Return (ITR) if their total income exceeds INR 2.5 lakhs.
Individuals aged 60 years and above (Senior Citizens): Required to file an ITR if their total income exceeds INR 3 lakhs.
Individuals aged 80 years and above (Super Senior Citizens): Required to file an ITR if their total income exceeds INR 5 lakhs.
Under the New Regime (for FY 2023-24):
The basic exemption limit for individuals is INR 2.5 lakhs.
However, as per Budget 2023, the exemption limit has been increased to INR 3 lakhs for all individuals under the new regime.
Businesses or Firms: All businesses, including firms, are required to file an ITR irrespective of whether they have made a profit or incurred losses during the financial year.
Types of Return: A Detailed Explanation
Original Return
An original return refers to the first tax return a taxpayer files within the due date for a given financial year. Filing an original return on time is crucial to avoid inconveniences like penalties, interest, or audits.
The original return includes all the taxpayer's income sources, such as wages, salaries, business income, dividends, interest, rental income, and other taxable income. Deductions and credits, such as medical expenses or mortgage interest, are applied to reduce taxable income, determining the taxpayer’s final tax liability. Filing this return accurately establishes the taxpayer's official tax record for the year.
Original tax returns can be filed online or through paper and are valid if filed on time and with complete information. If errors are discovered later, they must be corrected by filing an amended or revised return.
From FY 2023-24, the default tax regime for individuals, Hindu Undivided Families (HUFs), and other eligible entities is the new tax regime. However, taxpayers may still opt to be taxed under the old regime, which allows more deductions and exemptions, though at higher tax rates.
Revised Return
A revised return is filed to correct errors or omissions in an originally filed return. Under Section 139(5) of the Income Tax Act, a taxpayer can revise their return if they discover mistakes after the initial filing, such as omitted income or incorrect deductions. The deadline for filing a revised return is typically three months before the end of the assessment year, i.e., by December 31 of the assessment year.
Once a revised return is filed, the original return is considered withdrawn. However, the revised return is allowed only for genuine, unintentional errors. If the tax authorities find fraudulent or deliberate errors, penalties may be imposed, and a revised return may be rejected.
Points to Remember When Filing a Revised Return
The same form can be used for both the original and revised returns.
No penalty is imposed for genuine mistakes.
Interest under Sections 234B and 234C may need to be recalculated.
If a revised return is filed after an audit or investigation and fraud is detected, penalties may be imposed.
Example Scenarios
Rajesh's Case:
Rajesh is a salaried employee who filed his income tax return on April 15, 2024, well within the due date. However, after submitting the return, he realized that he had underreported his salary income from a secondary job that he had briefly taken on during the year. This mistake resulted in his taxable income being reported lower than it should have been, leading to a reduced tax liability.
Upon discovering the error, Rajesh decided to correct it by filing a revised return on May 10, 2024. In the revised return, he accurately reported his total salary income, including the amount from his second job. This revision updated his taxable income, resulting in a higher tax liability. Rajesh paid the difference in taxes along with any applicable interest.
Since the revised return was filed under Section 139(5) and before the deadline for revised returns, the revised return replaces the original one. Rajesh's revised return is considered valid, and the original return is deemed withdrawn. This helps him avoid any potential scrutiny or penalties from the tax authorities due to underreporting income in his original return.
Priya's Case:
Priya owns a property from which she earns rental income. She filed her income tax return on April 15, 2024, but inadvertently forgot to report the rental income from this property. As a result, her taxable income was significantly understated, which could have led to an audit or penalty if left uncorrected.
Upon realizing her mistake in early May, Priya decided to rectify the omission by filing a revised return on May 10, 2024. In her revised return, she included the previously omitted rental income and recalculated her total tax liability accordingly. The additional tax on the rental income, along with applicable interest, was paid promptly.
Since Priya filed the revised return within the allowed time frame under Section 139(5), the revised return supersedes her original one. The revised return is now considered the valid return for the assessment year, and the original return is withdrawn. By promptly correcting the omission, Priya avoids penalties or potential scrutiny from tax authorities for underreporting income.
Suresh's Case:
Suresh, a self-employed individual, filed his income tax return on time for the financial year 2023-24. In his original return, filed on April 10, 2024, he claimed a deduction for medical expenses incurred during the year. However, after filing the return, Suresh realized that he had mistakenly claimed medical expenses exceeding the permissible limit under the Income Tax Act.
To correct this overstatement, Suresh filed a revised return on June 30, 2024, where he adjusted the medical expenses to the correct amount that is allowable under the law. This change affected his taxable income and consequently his total tax liability, which increased. Suresh paid the additional taxes and any applicable interest after recalculating his liabilities.
By filing the revised return under Section 139(5) and correcting the deduction error, Suresh ensured that he complied with tax regulations. The revised return replaces the original one, making it the valid return for the assessment year. Filing a revised return timely also helps Suresh avoid penalties or interest for underreporting his tax liability in the original return. Furthermore, by correcting the claim before any tax authority intervention, Suresh mitigates the risk of being subject to an audit or scrutiny.
Belated Return
A belated return is filed after the due date for filing the original return, as allowed under Section 139(4) of the Income Tax Act. The deadline for filing a belated return is typically three months before the end of the assessment year. Filing a belated return attracts penalties and interest on unpaid tax amounts.
If a belated return is filed after the July 31 deadline, the taxpayer faces a penalty of INR 5,000. For individuals with incomes below INR 5 lakh, the penalty is reduced to INR 1,000. While penalties apply, it's always better to file a belated return than not to file at all, as continued delays can increase penalties. Additionally, certain exemptions under the old tax regime are not available when filing belated returns.
Updated Return
An updated return, introduced under Section 139(8A), allows taxpayers to update their filed returns within two years of the relevant assessment year. This return is meant to declare additional income that may have been missed in the original or belated return.
You can file an updated return if:
You missed the original or belated return deadline.
You realize that some income was not reported.
You made an error in selecting the correct income category or tax rate.
You want to adjust carried-forward losses, unabsorbed depreciation, or tax credit under Section 115JB or 115JC.
An updated return must result in additional taxes being paid, meaning it cannot be used to claim a refund or reduce the tax liability. For each assessment year, only one updated return can be filed.
Key Points for Updated Return
Currently, ITR-U forms can be filed for FY 2020-21 until March 31, 2024, and for FY 2021-22 until March 31, 2025.
How to File an Income Tax Return?
How to File an Income Tax Return
Visit the official income tax e-filing website (https://www.incometax.gov.in).
Log in by clicking on the "Login" option.
Enter your PAN in the "User ID" field and click on "Continue."
Complete the CAPTCHA or select a security option and check the box.
Enter your password and click "Continue."
Once logged in, click on the "e-File" tab > "Income Tax Returns" > "File Income Tax Return."
Select the correct assessment year for which you are filing the return and choose "Online" as the filing mode.
Choose the filing type as "Original" or "Revised" return as applicable.
Select your filing status, such as "Individual," "HUF," etc.
Choose the correct ITR form based on your income source(s) and category (e.g., ITR-1 for salaried individuals).
Indicate the reason for filing the ITR (e.g., income above the exemption limit, refund claim, etc.).
Verify pre-filled details, such as personal information (contact details, PAN, bank account, date of birth), income details, and deductions.
Review and submit the return, and finally, e-verify your ITR using any of the provided methods (Aadhaar OTP, net banking, or EVC) within the specified time limit (120 days from the filing date).
Consequences of Delay in Filing an ITR
Failure to file your ITR by the due date can have several negative consequences:
Late Filing Penalty:
If you miss the deadline (usually December 31st for late filings), a penalty of INR 5,000 will be charged if your income exceeds INR 5,00,000.
If your income is between INR 2,50,000 and INR 5,00,000, the penalty is reduced to INR 1,000.
Loss of Carry Forward of Losses:
You will not be able to carry forward certain losses (such as capital gains and business losses) to future years if you miss the filing deadline.
Interest under Section 234A:
Interest at the rate of 1% per month will be levied on the outstanding tax amount for each month of delay after the due date, applicable under Section 234A.
Impact on Refunds:
If you are eligible for a tax refund, filing late may cause a delay in receiving the refund. Additionally, you may miss out on a portion of the interest that the government pays on the refund amount if you file after the deadline.
Due Dates for Return Filing Based on Types of Return
The deadline for filing each type of return is as below:
Type of Return | Financial Year (FY) | Assessment Year (AY) | Deadline |
Original return | 2023-24 | 2024-25 | 31st July 2024 |
Revised return | 2023-24 | 2024-25 | 31st December 2024 |
Belated return | 2023-24 | 2024-25 | 31st December 2024 |
Updated return | 2023-24 | 2024-25 | 31st March 2027 |
2022-23 | 2023-24 | 31st March 2026 | |
2021-22 | 2022-23 | 31st March 2025 |
Due Dates for Return Filing Based on Types of Assessees
The deadline for ITR filing based on types of assessees is as below:
Types of Assessees | Due Date for ITR Filing |
All assessees (except companies, LLPs, firms, working partners) | 31st July of the following Assessment Year (AY) |
Companies and LLPs | 31st October of the following AY |
Companies requiring transfer pricing report | 30th November of the following AY |
Revised Return | 31st December of the following AY |
Updated Return | Within 2 years from the end of the relevant AY |
FAQs
Q1. Q1. What is the difference between an original and a revised return?
The original return is the first filing of an income tax return for a financial year. A revised return is filed to correct any mistakes or omissions in the original return.
Q2. What is the due date to file the revised income tax return?
The due date to file a revised return is 31st December of the relevant assessment year, regardless of whether there is a change in the tax liability amount.
Q3. How many times can a revised return be filed?
A revised return can be filed multiple times until the expiry of the time limit, which is the earlier of either 31st December of the relevant assessment year or the completion of the assessment.
Q4. Can a salaried individual file an income tax return after the due date?
Yes, a salaried individual can file a belated return up to 31st December of the relevant assessment year, subject to payment of a penalty under section 234F.
Q5. Can I opt for a new regime after the due date?
Yes, salaried individuals can choose the new tax regime while filing a belated or revised return, but individuals with income from business or profession cannot opt for the new regime after the due date.
Q6. Is it compulsory to file an income tax return if income is below INR 2.5 lakhs?
No, it is not mandatory to file an income tax return if the total income is below INR 2.5 lakhs, unless other conditions, such as foreign asset ownership or specified exemptions, apply.
Q7. Is it possible to file income tax returns without Form 16?
Yes, it is possible to file an income tax return without Form 16. You can use your salary slips, Form 26AS, and other financial records for the calculation and filing of your return.
Q8. Can income tax returns be filed after the due date?
Yes, income tax returns can be filed after the due date, but they will be considered belated returns and may attract penalties under section 234F.
Q9. How do you check the income tax return status?
The status of an income tax return can be checked on the official income tax e-filing portal using your PAN and password.
Q10. What is a return under section 139(4A)?
Section 139(4A) pertains to the filing of returns by charitable or religious trusts that receive income that is eligible for exemption under section 11 and 12. These trusts are required to file returns if their income exceeds the basic exemption limit before considering the exemptions.
Q11. What is the due date for income tax return filing for companies?
The due date for filing income tax returns for companies is 31st October of the relevant assessment year. If the company has international transactions that require transfer pricing reports, the due date is extended to 30th November.
Q12. What is the due date for income tax return filing for HUFs?
For Hindu Undivided Families (HUFs), the due date for filing income tax returns is 31st July of the assessment year if they do not require an audit. If the HUF is required to have its accounts audited, the due date is 31st October. For HUFs involved in international transactions, the due date is 30th November of the relevant assessment year.
Q13. What documents are required to file ITR?
Documents such as Form 16, Form 16A, Form 26AS, bank statements, interest certificates, proof of investments, and other financial documents are required to file an income tax return.
Q14. Is it necessary to attach documents with the ITR form?
No, it is not necessary to attach any supporting documents such as certificates or TDS certificates when filing the ITR. However, you must retain these documents for future reference in case the tax authorities ask for verification during assessments.
Q15. Will I have to pay additional tax while filing ITR if the salary is subject to TDS?
Yes, you may still need to pay additional tax while filing your ITR if the total tax liability exceeds the amount deducted as TDS. If the TDS is lower than the actual tax due, the balance tax must be paid while filing the return.
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