Wrong ITR Form? Taxpayers Get 15 Days to Fix Defective Return

Each ITR form is built for a specific taxpayer category. Salaried individuals, people with capital gains, business owners and those with foreign assets each have their own form. The income tax department says the correct form is crucial to smooth and timely processing.

The fix for a wrong form is a revised return. For assessment year 2026-27, a revised return can be filed until March 31, 2027, or before the department completes the assessment, whichever comes first. The revised return is filed online through the income tax portal by selecting the option to revise the previous ITR and updating the form and details.

Missing that window does not remove all options. A taxpayer can file an updated return, known as ITR-U, within 48 months of the relevant assessment year. That option requires paying additional tax and interest, and it helps reduce future litigation exposure, according to the tax department's website.

Ritika Nayyar, a partner at Singhania & Co., said there may not be a direct penalty for choosing the wrong ITR form if the mistake is genuine and corrected within the prescribed timeline. She added that an incorrect filing which underreports income or claims excess deductions can still bring interest and penalties. Inaccurate disclosures, she said, can prompt scrutiny proceedings under the income tax law. Delayed correction can also affect refunds and the ability to carry forward losses.