The Income Tax Department has reported a significant surge in taxpayers proactively correcting their filings. For the current Assessment Year 2025-26, more than 15 lakh individuals have already submitted revised income tax returns. This data, released on Tuesday, highlights a growing trend of taxpayers seeking to amend their original declarations.
Revised vs. Updated Returns: Key Numbers and Deadlines
Alongside the revised returns, the department disclosed that over 21 lakh taxpayers have opted to file updated income tax returns during the present fiscal year. This corrective action has led to the collection of an additional Rs 2,500 crore in tax revenue. The window for filing a revised return for AY 2025-26 is still open, but taxpayers must act swiftly. The final date to submit a revised return is December 31 of this year.
From January 1 onwards, the option to file a revised return will no longer be available for this assessment year. Instead, individuals wishing to make changes will need to navigate the process of filing an updated Income Tax Return (ITR). This distinction is crucial for taxpayers to understand to avoid last-minute confusion and potential penalties.
I-T Department's New Advisory Campaign on Deductions
In a parallel move to ensure compliance and accuracy, the Income Tax Department has initiated a targeted campaign. This drive focuses on taxpayers who may have claimed deductions incorrectly. Specifically, the department is sending out personalised advisories to identified individuals who have claimed deductions related to donations made to unrecognised political parties or charitable institutions.
This campaign aims to educate taxpayers and prompt them to review their claims before the department initiates stricter scrutiny. It serves as a preventive measure, helping citizens correct inadvertent errors and align their filings with the official rules.
Implications for Indian Taxpayers
The high numbers for both revised and updated returns indicate a robust digital ecosystem and increased taxpayer awareness regarding the importance of accurate filings. The substantial tax collection of Rs 2,500 crore from updated returns underscores the revenue impact of these correction mechanisms.
Taxpayers are advised to mark the December 31 deadline clearly if they need to revise their AY 2025-26 return. For any corrections needed after this date, the updated ITR process will be the only available route, which may have different conditions and implications. Staying informed about these procedures and responding promptly to any advisories from the I-T department can help ensure a smooth and compliant tax filing experience.
