Filing the wrong ITR could be a costly mistake, as it can attract notices and penalties from the Income Tax Department.
Nidhi | Jul 24, 2025 |
Selected Wrong ITR? Know How to Correct it to Avoid Penalty
Many taxpayers get confused about which ITR they should file based on their income and the sources of Income. Due to uncertainty, they end up filing the wrong ITR. Filing the wrong ITR could be a costly mistake, as it can attract notices and penalties from the Income Tax Department. But the good news is that you can always correct your mistake of filing the wrong ITR within the specified time period.
If the mistake or omission is found after submitting your ITR, then taxpayers can revise their ITR as allowed under Section 139(5) of the Income-tax Act. Taxpayers are allowed to file a revised return any time three months before the end of the relevant assessment year or the completion of assessment by the Income Tax Authority, whichever occurs first.
To revise your return, all you need to do is log in to the e-filing portal of Income Tax and click on the “Revised Return” option and submit the acknowledgement number of your original ITR. After this, select the correct ITR form and make necessary changes, and e-verify it. You can revise your ITR multiple times before December 31 of the relevant assessment year unless extended.
If you realise there is a mistake in your tax return after the revision deadline has passed, do not worry, you still have a few ways to fix it, but with some conditions.
According to tax experts, one way is to file an Updated Return under Section 139(8A). This gives you up to 48 months (4 years) from the end of the relevant assessment year to correct your return. But keep in mind that this involves paying extra tax. Note that an updated return can be filed only once. You will not be able to revise it again later. Additionally, this option will not work if you are filing an ITR to report a loss, claim a huge refund, or reduce your tax bill. Apart from this, you cannot use this option if the tax authority has initiated or completed an investigation, survey or assessment under the Income Tax Act.
Another option is to file a rectification request under Section 154. This is allowed only for clear and simple errors that do not need deep investigation or verification.
Although there is no such rule that says that the revision of your ITR attracts Scrutiny, but if you keep on making changes on a regular basis or make big changes, it can attract the attention of the Income Tax Department, which uses AI tools to track such revisions, as making regular changes can seem like a taxpayer is trying to hide income.
If you realise your mistake of filing the wrong ITR, correct it as soon as possible to avoid scrutiny by the Income Tax Department.
There are different ITRs, such as ITR-1, ITR-2, ITR-3, ITR-4, etc., for different sources of Income. One must choose them according to their income sources. Taxpayers should make sure that they choose the correct ITR form to save money and time. Filing a wrong ITR can result in treating it as a defective ITR under Section 139(9) of the Income Tax Act. Experts explain that if the form you use does not match your actual income sources or deductions, your ITR could also be rejected.
If you are still uncertain, it is best to consult a tax expert who can help you choose the right ITR based on the sources of your Income.
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