Have you received a Section 142(1) notice and realised there was a mistake in your original tax return? It happens more often than you think. Maybe you forgot to report some income, claimed the wrong deduction, or submitted the wrong figures. The good news is, you can fix it.
Filing a revised return is your chance to correct those errors before the tax department moves further with the assessment. Whether you missed a crypto transaction or miscalculated your total income, revising your return under Section 139(5) helps you stay compliant and avoid penalties. In this article, we will walk you through when and how to file a revised return after receiving a notice under Section 142(1).
When Can You File a Revised Return?
A revised return is useful when your original filing has errors or missing details. After receiving a Section 142(1) notice, you may correct these issues by filing a revised return.
In Case of Discrepancies or Mismatched Information
If the income figures in your original return do not match the data available to the tax department, such as Form 26AS or AIS, you can file a revised return. Discrepancies often occur due to overlooked TDS entries or interest income. Filing a corrected version allows you to fix these mismatches and align your return with the official records.
If You Forgot to Report an Income Source
You can file a revised return if you forgot to report income from sources like savings account interest, rental property, or crypto trading. These omissions are common and often flagged through AIS data. By reporting the missing income in your revised return, you reduce the risk of penalties and ensure your return reflects your actual earnings.
- There’s no way to trace the counterparty’s PAN.
- 1% TDS under Section 194S cannot be deducted in practice.
Incorrect Deductions or Exemptions Claimed
If you claimed deductions under the wrong sections or declared incorrect amounts, it’s best to revise your return. This includes errors in health insurance premiums, education loan interest, or investments under Section 80C. Filing a revised return ensures that only eligible deductions are claimed and helps avoid rejection or penalty during assessment.
Legal Provision for Revised Returns: Section 139(5)
Section 139(5) of the Income-tax Act allows taxpayers to file a revised return if they discover any errors or omissions in their original return. This provision applies even after a Section 142(1) notice is issued, as long as the assessment is not yet completed. It gives taxpayers a legal route to correct mistakes before facing any penalty or prosecution.
Revised returns filed under this section replace the original submission. However, the revision must be done within the prescribed deadline, which is typically before the end of the relevant assessment year or before the completion of assessment, whichever is earlier. By using this provision, taxpayers can ensure that their updated return becomes the official version used for evaluation by the Assessing Officer.
Read More: How To File Revised Return?- Section 139(5)
Step-by-Step Guide to Filing a Revised Return After Notice
Filing a revised return after receiving a Section 142(1) notice involves updating your details on the Income Tax e-Filing portal. Follow these steps carefully to ensure your corrections are submitted properly.
Step 1: Log in to the e-Filing Portal
Start by visiting the official income tax portal. Use your PAN as the user ID, along with your password and captcha code, to access your account. If you’ve forgotten your login details, reset them before proceeding. Make sure you’re logged in under the correct PAN associated with the notice.
Step 2: Select the Right Assessment Year
After logging in, navigate to the e-File section and select “Income Tax Return.” Choose the relevant assessment year for which the notice was issued. Selecting the wrong year can result in rejection of your revised return or confusion during the review process. Always verify this detail before moving ahead.
Step 3: Choose 'Revised Return' as Filing Type
Within the ITR form, you’ll be asked to specify whether this is an original or revised return. Select “Revised Return” from the dropdown options. This step ensures your new submission overrides the original and is recognised as a correction. Filing it as a new return instead of a revision can cause duplicate entries and further notices.
Step 4: Make the Required Corrections
After logging in, navigate to the e-File section and select “Income Tax Return.” Choose the relevant assessment year for which the notice was issued. Selecting the wrong year can result in rejection of your revised return or confusion during the review process. Always verify this detail before moving ahead.
Step 5: Submit and E-Verify
Once your corrections are complete, submit the return on the portal. You must then complete the e-verification process. You can do this using Aadhaar OTP, net banking, or other approved methods. E-verification is essential to validate your revised return. A return that is not verified is treated as not filed.
Step 6: Save Acknowledgement and Track Status
After submission and verification, download the acknowledgement (ITR-V) and save it for your records. You can also track the status of your revised return on the dashboard. This helps ensure that the department has received and is processing your updated information.
Revising Returns Through the e-Proceedings Section
If you are already responding to a Section 142(1) notice through the e-Proceedings portal, the system may prompt you to file a revised return as part of your reply. Here’s how the process works:
Step 1: Access the e-Proceedings Section
Log in to the Income Tax portal and go to the ‘Pending Actions’ tab. Select ‘e-Proceedings’ from the menu. This section will display all notices issued, including your Section 142(1) notice. Click on the relevant case to begin your response.
Step 2: Review the Notice Details
Read the entire notice carefully. It may include options such as “Fully Agree,” “Partially Agree,” or “Disagree.” If the system detects errors in your original return, it may recommend filing a revised return through a hyperlink.
Step 3: Look for ‘Please File a Revised Return’ Link
If you click “Partially Agree” to acknowledge mistakes, a prompt may appear with a link titled ‘Please file a Revised Return’. This link redirects you to the revised return filing section within the same portal.
Step 4: Follow the Standard Filing Process
Once redirected, complete the revised return by following the same steps explained in the earlier section, selecting the right year, choosing ‘Revised Return’, correcting errors, and submitting.
Step 5: Submit Both Response and Return
After you submit the revised return, go back to the e-Proceedings tab and complete your written response. Upload any other required documents and click ‘Submit Response’ to close the loop.
Things to Keep in Mind Before Filing a Revised Return
Before submitting your revised return, it’s important to double-check a few essential points. These checks will help you avoid repeat errors and ensure your return is accepted without issues.
Cross-Check Your Form 26AS and AIS
Always verify your income details against Form 26AS and AIS before filing a revised return. These documents reflect the data available to the Income Tax Department, including TDS, high-value transactions, and third-party reports. Matching your revised ITR with these records reduces the chances of mismatches and follow-up notices. Any inconsistency between your return and these statements should be addressed before submission.
Reconcile All Bank Transactions
Go through your bank statements to ensure that all income sources, salary, rent, interest, or freelance earnings, are properly reflected in your return. Make sure deposits are explained and linked to corresponding income heads. Unexplained or inconsistent entries often trigger further scrutiny, especially when flagged through AIS. Accurate reconciliation helps maintain transparency and trust in your records.
Ensure Accurate Crypto Reporting
If you have invested in or traded cryptocurrencies, ensure that every trade, transfer, and swap is included in your revised return. Use your exchange transaction history to calculate gains and losses correctly. Missing out on virtual digital asset transactions may result in your Schedule VDA being considered incomplete or inaccurate, which can be declared as undisclosed income leading to assessment delays or penalties.
Attach All Supporting Documents
Your revised return should be backed by clear, well-organised supporting documents. This includes TDS certificates, interest certificates, deduction proofs, and investment documents. Even though not all documents are submitted with the return, they may be requested during assessment. Having them ready improves your chances of a smooth processing experience.
Check the Deadline in the Notice
Pay close attention to the submission deadline mentioned in your Section 142(1) notice. Filing the revised return after the deadline may invalidate your response and increase the risk of penalties under Section 271(1)(b) or even a best judgement assessment under Section 144. Prioritise timely filing to avoid further complications.
What Happens After You Submit a Revised Return?
Once you submit and verify your revised return, the Income Tax Department reviews it along with your response to the Section 142(1) notice. If the revised return addresses all discrepancies and matches official records like Form 26AS or AIS, the Assessing Officer may accept the corrections and close the case without further action.
However, if issues remain unresolved or new discrepancies arise during review, the department may proceed with further examination. This could involve issuing a notice under Section 143(2) for detailed scrutiny or requesting additional documents through the e-Proceedings portal.
Filing a revised return does not automatically guarantee closure, but it significantly lowers the chance of penalties or legal action, especially if filed within the notice deadline.
How Can KoinX Help You File an Accurate Revised Return?
Filing a revised return becomes more complex when your tax records involve crypto transactions. From calculating gains to preparing Schedule VDA, every detail matters. KoinX helps simplify this process by providing accurate reports, real-time integrations, and expert support, so you can respond to notices confidently and stay compliant.
Consolidated Crypto Tax Reports
KoinX automatically pulls transaction data from all your connected exchanges and wallets, then generates a consolidated tax report. This report reflects all realised gains or losses, saving you the trouble of manual entry. With accurate cost and sale values, your capital gains calculations become error-free, helping you file a clean and correct revised return.
Easy Integration With Exchanges and Wallets
KoinX integrates with 800+ major exchanges, blockchains and wallets. This allows you to import your entire transaction history automatically, without the need for manual uploads or spreadsheets. Real-time syncing helps ensure your data is always up to date when preparing your revised return, saving you time and reducing errors.
Precise Schedule VDA Generation
Schedule VDA is required for reporting crypto trades in your ITR. KoinX generates this schedule in a format approved by the Income Tax Department. It includes transaction-wise details of your buys, sells, and transfers, ensuring that every trade is reported accurately. This helps prevent assessment delays caused by incomplete or inconsistent crypto disclosures.
Auto Classification of Transactions
Every crypto transaction is different, buy, sell, swap, airdrop, staking reward, or transfer. KoinX automatically classifies these transactions based on their type, which ensures that each one is taxed correctly. This feature reduces the chances of misreporting or accidental omission, especially when filing a revised return after receiving a tax notice.
Assistance With Revising ITR via the Portal
KoinX not only prepares your reports but also guides you through the process of revising your ITR on the portal. It ensures that your corrected figures match your tax documents and meet the department’s filing standards. This support is especially useful for individuals who are new to the revised return process.
Make crypto tax compliance stress-free with KoinX. Get started today and file your revised return with confidence.
Conclusion
If you receive a Section 142(1) notice and realise your return has errors, filing a revised return is the right step. It shows you are willing to correct mistakes and cooperate with the Income Tax Department. Revising your return on time helps avoid penalties, reassessments, and unnecessary scrutiny.
Whether you missed reporting income or crypto trades, tools like KoinX make it easier to file accurately and confidently. Act early, review carefully, and respond with clarity. Join KoinX today to stay fully compliant.
Frequently Asked Questions
Can I File a Revised Return More Than Once?
Yes, you can file multiple revised returns within the permitted timeline, as long as the assessment is not completed. However, each revised return should fully replace the previous one and must be verified. It’s best to avoid repeated revisions by thoroughly reviewing your data before submission.
What If I Miss the Deadline for Filing a Revised Return?
If you miss the deadline, you cannot revise your return under Section 139(5). In such cases, your original return remains valid, and the Assessing Officer may proceed with assessment based on the available data. You may also face penalties if discrepancies are not corrected in time.
Do I Need to Attach Documents While Filing a Revised Return?
You do not need to attach documents while filing the revised return, but you must keep all supporting records ready. These may be requested during assessment or scrutiny. Submitting inaccurate or unsupported information could result in penalties or rejection of your claims.
Will the Revised Return Automatically Resolve the Notice?
Not always. If your revised return fully addresses the concerns raised in the notice, the department may accept it and close the case. However, if doubts remain, further action or a follow-up notice may still occur. It’s important to respond clearly and provide accurate corrections.
