Wrong ITR Form Filed? Fix It for AY 2025-26

Filed the Wrong ITR Form? Here’s How to Fix It for AY 2025-26

The Income Tax Department has now enabled e-filing for ITR-2 and ITR-3 forms, completing the availability of all major ITR forms (1-4) for the Financial Year 2024-25 (Assessment Year 2025-26). Taxpayers also have more time to file their returns, as the deadline for FY2024-25 has been extended to September 15, 2025.

One of the most frequent errors taxpayers make is choosing an incorrect ITR form. This can lead to unwanted notices from the tax department or even penalties. Therefore, it’s crucial to exercise caution when selecting the appropriate ITR form based on your income and eligibility.

Steps to Correct an Incorrect ITR Form

Step 1: Identify the Right ITR Form

Your first action should be to determine the correct ITR form for your specific income profile. Here’s a general guide:

• ITR-1 (Sahaj): Ideal for salaried individuals with income up to Rs 50 lakh, owning one house property, and no business income or capital gains.
• ITR-2: For individuals with income from multiple properties, capital gains, or foreign assets, but without business income.
• ITR-3: Designed for individuals with income from a business or profession.
• ITR-4: Applicable for those opting for presumptive business or professional income under Sections 44AD, 44ADA, or 44AE.

Tip: The Income Tax e-filing portal offers a helpful tool, “Help me decide which ITR Form to file,” which can guide you to the correct form based on your income and status.

Step 2: File a Revised Return (Under Section 139(5))

If you’ve submitted the wrong ITR form and your original return has not yet been processed, you can file a Revised Return.

• When to File: You can file a revised return without penalty by the ITR filing deadline of September 15, 2025, for AY 2025-26. The absolute last date to file a revised return (or a belated return) for AY 2025-26 is December 31, 2025. There’s no restriction on how many times you can revise your return within this timeframe.
• Important Considerations: This option is only available if your original return has not been processed by the tax department. Additionally, ensure your initial return was filed on time and duly verified, as unverified returns cannot be revised.
• How to File:
  1. Log in to the e-filing portal (incometax.gov.in).
  2. Navigate to “e-File” > “Income Tax Returns” > “File Income Tax Return.”
  3. Under the filing type, select “Revised u/s 139(5).”
  4. Provide the acknowledgment number and the original filing date of the return you wish to revise.
  5. Select the correct ITR form, update all necessary information, and then submit.
  6. Remember to e-verify your revised return within 30 days using methods like Aadhaar OTP, net banking, or digital signature. Alternatively, you can mail the signed ITR-V to the Centralised Processing Centre (CPC) in Bengaluru within the same 30-day period.

Step 3: File an Updated Return (Under Section 139(8A))

If the deadline for filing a revised return (December 31, 2025) has passed, you still have an avenue to correct your ITR by filing an Updated Return (ITR-U).

• When to File: An ITR-U can be filed within 48 months from the end of the relevant financial year. For FY 2024-25, this means you have until March 31, 2029, to file an ITR-U.
• Key Point: While ITR-U allows for corrections, it may involve paying additional tax or penalties if you are correcting underreported income. It’s highly recommended to consult a tax professional to assess the full implications before proceeding with an ITR-U.