Filed the wrong ITR form? Here's how to fix it to avoid penalty

India Today

24-07-2025

Filing your Income Tax Return (ITR) often feels like ticking off a major task on your to-do list, until you realise you've picked the wrong form. Don't worry, you're not alone. With multiple income streams and varied deductions, it's surprisingly easy to select the incorrect ITR. The good news? You usually have time, and ways to fix it.Many taxpayers only spot mistakes after hitting 'Submit'. Filing the wrong form can snowball into bigger headaches later, from refund delays to unexpected penalties. But tax experts say you do have ways to set things right, provided you act quickly.advertisementIndiaToday.in spoke to CA (Dr) Suresh Surana and Pankaj Aneja, Partner Taxation, ASA & Associates LLP, to understand what to do if you've filed the wrong ITR.YES, YOU CAN REVISE YOUR ITRThe first step is to check if you can file a revised return. Surana explains, 'A taxpayer can revise their ITR if an error or omission is found after submission. This is allowed under Section 139(5) of the Income-tax Act. A revised return can be filed at any time 3 months prior to the end of the relevant assessment year or the completion of the assessment by the income tax authorities, whichever is earlier.'
Simply put, if you filed your original return on time, just log in to the Income Tax e-Filing portal, select the 'Revised Return' option, enter the acknowledgement number of your original ITR, choose the correct form for your income situation, make the necessary changes, and don't forget to e-verify it.Pankaj Aneja adds, 'The revised return fully replaces the original return and must be filed by December 31 of the relevant assessment year (or any extended timeline). Multiple revisions are permitted within the allowable timeframe.'WHAT IF YOU MISS THE REVISION DEADLINE?Panic usually sets in if you spot the error after the window for revising your return closes. But all is not lost. There are still options, but with a few conditions.Surana points out, "If the mistake is found after the revision window closes, you can file a rectification under Section 154. This provision enables the correction of mistakes that are factual and do not require extensive verification or fresh investigation. Another option is the Updated Return under Section 139(8A). This lets you correct mistakes within 48 months from the end of the relevant assessment year, but you'll need to pay additional tax."Aneja explains, 'Once the revision deadline is over (i.e., post December 31 of the assessment year or after the assessment is complete), the usual revision isn't possible. However, you can file an "Updated Return" under Section 139(8A) with payment of additional tax.''A updated return can be filed one time with no further revision permitted thereafter,' he added.advertisementAneja also shared the timeline and additional tax rates for filing an Updated Return:
Credit: Pankaj Aneja, Partner Taxation, ASA & Associates LLP
However, you cannot use this option in every case. For instance, you can't file an Updated Return to declare a loss, reduce your tax bill, or claim a bigger refund. Also, if the tax department has already started or completed a search, survey, or assessment under different sections of the Income Tax Act, you cannot use this option, Aneja clarified.WILL CORRECTING YOUR ITR INVITE TROUBLE?One common worry is whether fixing your ITR will attract scrutiny. The short answer, not always.Aneja says, 'There's no rule that simply revising your ITR automatically flags you for scrutiny. But if you make frequent or major changes, it can catch the attention of the tax department's AI systems.''Substantial revisions or multiple corrections could signal carelessness or an attempt to hide income, which might raise a red flag. If your revised return still doesn't match the information in Form 26AS, AIS, or TIS, expect a notice or scrutiny,' he cautions.advertisementWRONG ITR FORM CAN DELAY YOUR REFUNDFiling the wrong form can cost you time and money. Surana explains, 'If the form used does not correspond to the taxpayer's actual sources of income or claimable deductions, the return may be classified as defective under Section 139(9) of the IT Act. In such cases, the return may either be rejected or require rectification within a stipulated time.'Using the right ITR form is important because each one is designed for certain types of income. For example, you can't use ITR-1 if you have foreign income. If you have capital gains, you may need ITR-2 or ITR-3. Getting it right the first time saves time, money, and unnecessary stress. For instance, if you have foreign income, you can't use ITR-1. If you have capital gains, you may need ITR-2 or ITR-3.DON'T WAIT, FIX IT EARLYIf you've filed the wrong form, don't wait for the tax department to flag it. The sooner you fix it, the better your chances of avoiding late fees, interest, or missed refunds.With the right form and careful filing, your tax return can be hassle-free, and you won't have to lose sleep over a simple mistake.advertisementSo double-check your form before you file. And if you do slip up, remember, you still have time to set it right.- Ends