Allowing taxpayers to submit returns up till August 31, provides relief to those have not filed it yet, especially employees who did not receive their Form 16 in the designated time frame. They now have time to claim the right refunds. More importantly, the extension is a boon to individuals who might have claimed wrong deductions or made mistakes during their filing. Now, under Section 139(5) of the Income Tax Act, these individuals have a chance to revise their returns by rectifying or omitting incorrect facts.

As India embraces digitisation, the IT systems have become more vigilant than ever before. If the taxpayer doesn't rectify errors within a given period, the returns would be deemed null and void for the year. In fact, while assessing returns, Computer Aided Scrutiny Selection (CASS) will select the returns for scrutiny, in case of any under reporting of tax returns. The tax department will send a notice to the taxpayer, making it mandatory to furnish an in-depth break-up of details filled in the return. If the taxpayer has knowingly claimed deductions and is not able to provide supporting documents, then under section 270A, misreported income can lead to the penalty of 200 percent of the evaded tax amount.

Therefore, it is imperative to undertake revisions as early as possible, to avoid heavy fines or penalties.

Filing a revised return is no different from filing the original return. Tax payers simply need to choose revised return (Part-A-General Information) under section 139(5) and provide information (15-digit acknowledgement no. and date of filing of the original return) to identify the original return submission. The tax payer can then revise accordingly. Once completed it's necessary to send the ITR report to central processing centre (CPC) in IT Bengaluru office or e-verification can be done.

• They can also avoid simple interest at 1 percent for the month of August (under section 234A) on tax liability

India has primarily been a tax evasive country that relies on human assistance to fulfil their tax requirements. This is gradually changing with digital adoption and, the subsequent behavioural changes that arise with it. As the government takes steps to make the tax processes smoother for individuals, it's the duty of every taxpayer to file returns on time and work together with the government to make India a better nation.

SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com