Made a mistake in filing income tax return? Here's how to discard it before verification

Taxpayers may notice errors in their Income Tax Return (ITR) after submitting it on the income tax portal. Common mistakes include incorrect income details, omitted deductions and wrong tax calculations.

While you can correct mistakes by filing a revised return, the Income Tax Department also offers a ‘Discard’ facility for taxpayers who have filed their return but are yet to complete the verification process.

This discard option allows taxpayers to remove an unverified ITR from the portal and submit a fresh return with correct details.

What is Discard Return option?

The Income Tax Department allows taxpayers to discard an original, belated or revised ITR if it has been filed but not yet verified.

Once a return is discarded, it is removed from the taxpayer’s filing record on the portal. The taxpayer can then file a fresh ITR with the correct information.

What are conditions for using Discard ITR option?

The Discard option is only available before verification. If a taxpayer has already completed e-verification, the return cannot be discarded. The department has also advised taxpayers not to use the discard option for returns in which the physical ITR-V has already been sent to the CPC.

There is no limit on how many times a taxpayer can use the discard option, as long as the return remains unverified.

This option is available for returns filed from Assessment Year 2023-24 onwards and can generally be used until the last date permitted for filing returns under Section 139(1), 139(4), or 139(5), which is currently 31 December of the relevant assessment year.

What are steps to discard an ITR?

• Visit the Income Tax e-filing portal and log in using your credentials.
• Go to e-File and select Income Tax Return.
• Visit the e-Verify ITR page.
• Click on the ‘Discard’ option and confirm the action.

Why is discarded ITR treated as not filed?

One of the most important points taxpayers should remember is that discarding an ITR completely cancels the earlier filing. The discarded return will not be considered while determining whether the taxpayer has filed a return.

For example, a taxpayer files an original return before the due date and later discards it. If he submits a fresh return after the due date, it will be treated as a belated return. This could lead to consequences such as late-filing fees and other implications for delayed filing.

How is discarding different from filing revised return?

Although both options allow taxpayers to correct mistakes, they work differently.

In a revised return under Section 139(5), the original return remains part of the taxpayer’s filing history. The taxpayer updates the information by submitting a revised ITR, while details of the earlier filing remain available on the portal.

However, when a taxpayer uses the Discard ITR option, the earlier unverified return is removed completely. The figures and details submitted in that return are no longer available on the portal, and the taxpayer must file a new return from the beginning.

Disclaimer: This is only for informational and educational purposes. Please consult a qualified tax expert for the latest tax laws and regulations.