Difference between Rectification u/s. 154 & Revised Return u/s. 139(5)

Taxpayers are mostly confused about the fact when to revise return or when to file rectification. All the taxpayers have an option to revise the return or file rectification, if any mistake or omission is discovered in the original return.

Both, the revise return or rectification can be filed online only if the original return was filed online. We have explained here basic facts and issues relating to revise return and rectification, of which every individual should be aware of.

Revise Return

When
Revise return can be filed before completion of assessment or within 1 year from the end of the respective assessment year whichever is earlier. But, the revise return can be filed only if the original return was filed within due date.
Moreover, return can be revised even after receipt of intimation u/s. 143(1) as Intimation u/s 143(1) is not deemed to be completion of assessment.

Omissions which can be corrected by filing revise return
If after furnishing the original return, any omission or any wrong statement is discovered which was done totally unintentional then one may file a revised return.
However, the revision is not allowed if one has made a false return knowing it to be false. Deliberate omission and false or concealment or fraudulent statements fall outside the purview of the provision of revise return.

Rectification u/s 154

When

Rectification can be filed after processing of return or after receiving Intimation u/s 143(1). Rectification of mistake u/s.154 is made for rectifying mistakes apparent from the record.

Mistakes which can be rectified u/s 154
Mistakes which can be rectified is one which is patent, which is obvious and whose discovery is not dependent or argument or elaboration. Like an error of fact, a clerical or arithmetical mistake, error in determining written down value or mistake arising as a result of subsequent retrospective amendment of law.

Mistakes which cannot be rectified u/s 154
Where controversy can be resolved only by way of a complicated process of investigation, recourse cannot be taken to section 154. Moreover, even if an assessee has unintentionally made mistakes in income figures or claims in original return, one cannot rectify it u/s 154.
It is because, if there is any revision in income figures or new claims then the rectification request would be rejected or rectification would be delayed as IT department has clearly stated that rectification facility is only for correcting mistakes apparent from record.

Few Illustrations – When to Revise and when to file rectification

• If mistakenly Gross Salary is shown including exempt allowances – Rectification can be filed after correcting the same.
• Tax payment is not allowed by the IT department – This may be due to mismatch of BSR code or Challan number or date of deposit which lead to rejection of tax payment and in this case, Rectification can be filed after correcting the details.
• Overlooked the TDS amount – If an assessee has mistakenly overlooked the TDS amount then the total TDS amount can be claimed by filing revise return.
• Revision of Income figures or other new claims – In this case if the omission was done unintentionally then return can be revised.

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