Income Tax: What To Do If You Forget To Claim Deductions In ITR Filing?

Taxpayers can claim various deductions under multiple sections of the Income Tax Act, 1961.(File photo of Income Tax Office. Photo source: Vijay Sartape/NDTV Profit)

Filing your Income Tax Return (ITR) can be a daunting task. It's important to report all your income and proof of all tax-saving investments properly while filing the ITR. The deductions under various sections of the Income Tax Act, 1961, can significantly lower your tax liability and ensure you don't end up paying more than necessary. The process for ITR filing for FY 2024-25 has already started with the Income Tax Department notifying the forms, ITR 1 and ITR 4, this week.

The taxpayers, who don't need their accounts to be audited, can file their ITR by July 31, 2025. It's advisable to file the ITR in advance to avoid errors due to last last-minute rush. It's also important to note that you can claim multiple deductions only under the old tax regime, while the new tax regime allows limited claims on tax-saving investments.

However, in the process of entering multiple details, many taxpayers may overlook certain deductions that could reduce their total tax liability. So, what happens if you forget to claim these deductions? Well, not all is lost, and there are multiple ways to correct this oversight.

Why Are Deductions Important?

Taxpayers can claim various deductions under multiple sections of the Income Tax Act, 1961. Such deductions help taxpayers save more on total tax outgo by reducing the total taxable income in a financial year.

Various deductions, like those under sections 80C (for investments in PF, PPF, Life Insurance Premium), 80D (for premiums paid on health insurance), 80G (for donations to charity), and others, can collectively save you a significant amount on your overall income tax amount.

What Happens If You Forget To Claim Deductions?

If you forget to claim deductions in your original ITR, the immediate impact is that you will pay more tax than you should have. This oversight can result in an increased tax liability and may also lead in missing out on potential refunds.

However, the tax department allows certain provisions to rectify mistakes or omissions, even after the ITR has been filed. This can be done through a revised return, filed under Section 139(5) of the Income Tax Act, 1961. It allows taxpayers to correct any errors or omissions made in the original return. If you discover mistakes in your initial filing, including in a belated return, you have the option to file a revised return. This can be done by Dec. 31, 2025, of the relevant assessment year or before the completion of the assessment, whichever comes first.

Why Should You File A Revised Return?

There are several situations where filing a revised return becomes necessary:

Correcting Mistakes: If you identify any errors or omissions in your initial ITR, such as incorrect income reporting, missed deductions, or any other inaccuracies, filing a revised return gives you an opportunity to correct them.
Omissions, Missed Entries: If you accidentally fail to report certain income or overlook deductions and exemptions in your original filing, submitting a revised return allows you to include the missing details. This ensures that your tax assessment is based on complete and accurate information.
Tax Calculation Adjustments: If there are changes to tax laws, rules, or rates after you've filed your original ITR, you can file a revised return to adjust your tax calculation accordingly.

How To Revise An Income Tax Return?

Here's a quick guide to filing the revised return:

Visit the Income Tax e-filing website and log in with your PAN and other credentials.
After logging in, click on ‘e-File,' then select ‘Income Tax Return' and choose the assessment year for the revised return.
Select the same ITR form you used in the original filing based on your income sources.
In the ‘Filing Type' section, choose ‘Revised Return' to indicate you're updating a previous filing.
Enter the 15-digit acknowledgment number from your original ITR to link the revised return.
Update the necessary fields like income details, deductions and exemptions. Double-check all entries for accuracy.
After reviewing, submit the revised return online and verify it. You'll receive an email acknowledgment once it's processed.

While forgetting to claim deductions during the filing of your ITR could be frustrating, there are options available to correct the mistake. Filing a revised return within the prescribed timeline is the best course of action to ensure that you benefit from the deductions you are entitled to.