The Income Tax Department of India has provided taxpayers with two distinct mechanisms to correct or file belated returns: the revised income tax return (ITR) and the updated ITR. While both offer a chance to comply with tax regulations after the original due date, their purposes, eligibility, deadlines, and consequences differ significantly. Understanding these differences is crucial to avoid penalties and ensure proper tax filing.
Revised ITR vs Updated ITR: Core Purpose and Deadlines
The fundamental distinction lies in their intent. A revised ITR is for correcting errors or omissions in an original return already filed. The deadline to file a revised return for a particular assessment year is 31 December of that assessment year or before the tax department completes its assessment, whichever comes earlier. For instance, for errors in the FY 2024-25 (AY 2025-26) return, the revised return deadline is 31 December 2025.
An updated ITR, on the other hand, is for taxpayers who completely missed filing their original and belated returns. It is designed to encourage voluntary compliance. The window for filing an updated return is much longer, extending up to 24 months (2 years) from the end of the relevant assessment year. For the financial year 2024-25 (AY 2025-26), the last date to file an updated return is 31 March 2030.
Key Differences Summarised
Based on clarifications from tax portals like ClearTax and Taxguru, here are the critical points of divergence:
- Eligibility: An updated return can be filed even if no original return was filed. A revised return requires an original return to have been filed first.
- Tax Liability Condition: An updated return can only be filed if it results in additional tax payment. Revised returns have no such restriction and can be filed to correct any mistake, even if it leads to a refund.
- Penalties for Non-Filing: Failing to file a revised return on time does not attract a specific penalty, though taxpayers may need to file a condonation of delay request for certain claims. However, failing to file an updated return when additional income is discovered can lead to a penalty of 25% to 50% of the tax liability.
- Purpose: Updated returns are for declaring additional income or tax liability that was missed earlier. Revised returns are primarily for rectifying errors in a previously filed return.
What Happens If You Miss the Revised ITR Deadline?
If a taxpayer misses the December 31 deadline for filing a revised return, the option to correct that specific return lapses. However, they are not left without recourse. In such a scenario, if they have undisclosed income or need to file a return, they can still use the updated return route within its longer timeframe, provided they have an additional tax liability to report.
It is important to note that for both types of returns, filing beyond the original due date generally means the taxpayer may have to pay interest under sections 234A, 234B, and 234C of the Income Tax Act. The department emphasizes filing within the specified timelines to avoid these additional financial burdens.
Disclaimer: This information is for educational purposes only. Taxpayers should consult a qualified tax advisor or refer to the official Income Tax Department website for personalized and up-to-date guidance before filing their returns.
