ITR for FY25: What to do if you have filed the wrong ITR form?

Kolkata: If your income exceeds the basic exemption limit you have to mandatorily file income tax return, or ITR. ITR has to be filed in prescribed forms. There are seven types of forms for different categories of taxpayers and the Income Tax Department enjoins that a taxpayer should file ITR only in the form appropriate for him or her. These seven forms are called ITR-1 to ITR-7. They are based on the nature and type of the income of the taxpayer -- individual or HUF, partnership firm or company, simple salary income or capital gains etc.

Filing the wrong ITR form for FY 2024-25 can not only delay refunds but also attract notices from the Income tax Department. here we outline a few steps that one has to follow if one has submitted an incorrect ITR.

The first thing to note is that the return of a taxpayer who files an incorrect ITR will be considered invalid. A wrong ITR form will lead to a situation where the taxpayer will not find the income heads and status of the assessee matching the incomes of the assessee.

Can I rectify my previously filed ITR using the rectification request service? To this question, the Income Tax Department says, "If you notice a mistake in your submitted ITR, and it has not processed by CPC, you can submit a revised return. You can use the rectification request service on the e-Filing portal only against an order/notice u/s 143(1) from CPC."

One of the common mistakes taxpayers are prone to making is submitting ITR 1 when the individual has made capital gains from shares and/or mutual funds, or assets located abroad or has professional/consultancy income. In such cases form ITR-1 will be invalid. Usually in such an instance the IT department will issue a 15-day notice to rectify the submission. If the taxpayer doesn't take any corrective measure after getting the notice, the return will be considered as not filed, which, in turn, will invite non-payment of refund and charging of penalty.

If the ITR is not processed, the a taxpayer can submit a revised return under Section 139(5) of the Income Tax Act using the appropriate form. The process is not complicated -- the taxpayer has to enter the e-filing portal and click on ‘Revised Return’. He/she has to type in the original ITR details and rectify the mistake after choosing the appropriate form. The new return, too, has to be e-verified via Aadhaar OTP, digital signature or net banking.

There is another scenario that might crop up. If the inappropriate return is already processed, one could try to rectify minor errors by raising a rectification request. This is allowed under Section 154 of the IT Act. One has to log into the e-filing portal and select the ‘Rectification’ tab. One can get it vetted by a CA or an income tax lawyer. Tax professionals say that one has to keep the calendar in mind. Rectified and revised returns must be submitted before the assessment year ends which is March 31, 2026 for submitting returns pertaining to FY25, or before the original return is processed, whichever is earlier.