Income Tax Act 1961 Section 117

Income Tax Act Section 117 deals with the procedure for filing revised income tax returns. It allows taxpayers to correct errors or omissions in their original returns within the prescribed time. This section is crucial for individuals, firms, and companies to ensure accurate income reporting and compliance.

Understanding Section 117 helps taxpayers avoid penalties and legal complications. Tax professionals and businesses must be aware of the timelines and conditions for revising returns to maintain proper tax records and minimize disputes with tax authorities.

Income Tax Act Section 117 – Exact Provision

This section permits taxpayers to file a revised return to correct mistakes or include omitted information. The revised return must be filed before the assessment year ends or before the assessment is completed, whichever comes first. It ensures that taxpayers can rectify errors without facing penalties for incorrect original returns.

• Allows correction of errors or omissions in original returns.

• Revised return must be filed within the prescribed time.

• Applies only to returns filed under section 139.

• Prevents penalties for genuine mistakes if revised timely.

• Ensures accurate income reporting and compliance.

Explanation of Income Tax Act Section 117

Section 117 permits filing of a revised return to correct or add information in the original income tax return.

• Applies to all assessees who filed returns under section 139.

• Includes individuals, firms, companies, and other entities.

• Revised return can be filed before the end of the assessment year or before assessment completion.

• Triggers when a taxpayer discovers errors or omissions in the original return.

• Allows inclusion of omitted income or correction of wrong statements.

Purpose and Rationale of Income Tax Act Section 117

This section promotes accurate tax compliance by allowing taxpayers to amend their returns. It reduces disputes and penalties arising from honest mistakes.

• Ensures fair taxation by correcting errors.

• Prevents tax evasion through honest rectification.

• Encourages voluntary compliance with tax laws.

• Supports efficient revenue collection by accurate reporting.

When Income Tax Act Section 117 Applies

Section 117 applies when a taxpayer wants to revise a previously filed return within the allowed timeframe.

• Relevant during the assessment year following the income year.

• Applies before assessment completion or assessment year end.

• Applicable to all types of income and taxpayers.

• Not applicable after assessment completion.

Tax Treatment and Legal Effect under Income Tax Act Section 117

Filing a revised return under Section 117 updates the income details and tax liability. It replaces the original return for assessment purposes and helps avoid penalties for errors if done timely.

• Revised return supersedes the original return.

• Income computation is based on the revised return.

• Prevents penalties for genuine mistakes if filed timely.

Nature of Obligation or Benefit under Income Tax Act Section 117

This section creates a compliance opportunity rather than a direct tax liability. It benefits taxpayers by allowing corrections and avoiding penalties.

• Compliance duty to file revised returns timely.

• Benefit of correcting errors without penalty.

• Mandatory to adhere to prescribed timelines.

• Available to all taxpayers filing returns under section 139.

Stage of Tax Process Where Section Applies

Section 117 applies after the original return filing but before assessment completion or assessment year end.

• Post original return filing stage.

• Before assessment or reassessment.

• During return revision and correction phase.

• Prior to final tax computation and demand.

Penalties, Interest, or Consequences under Income Tax Act Section 117

Timely filing of revised returns under Section 117 helps avoid penalties and interest for errors in the original return. Late or non-filing may attract consequences.

• No penalty if revised return filed timely.

• Interest may apply if tax is due and paid late.

• Failure to revise may lead to penalties for incorrect returns.

• Non-compliance can trigger scrutiny or reassessment.

Example of Income Tax Act Section 117 in Practical Use

Assessee X filed an income tax return but later realized some income was omitted. Before the assessment year ended, Assessee X filed a revised return correcting the omission. This prevented penalties and ensured correct tax payment.

• Allows correction of genuine mistakes.

• Prevents disputes with tax authorities.

Historical Background of Income Tax Act Section 117

Originally, the Act did not allow easy correction of returns. Section 117 was introduced to facilitate voluntary compliance and reduce litigation. Amendments have clarified timelines and conditions for filing revised returns.

• Introduced to enable return corrections.

• Finance Acts refined filing deadlines.

• Judicial interpretations emphasize timely filing.

Modern Relevance of Income Tax Act Section 117

In 2026, with digital filings and faceless assessments, Section 117 remains vital. Taxpayers can easily file revised returns online, ensuring accurate data in the Annual Information Statement and TDS returns.

• Supports digital compliance and corrections.

• Integrates with AIS and faceless assessments.

• Essential for individuals and businesses to maintain accurate records.

Related Sections

• Income Tax Act Section 4 – Charging section.

• Income Tax Act Section 139 – Filing of returns.

• Income Tax Act Section 143 – Assessment.

• Income Tax Act Section 140A – Self-assessment tax.

• Income Tax Act Section 234A – Interest for default in return filing.

• Income Tax Act Section 275 – Penalties for false statements.

Case References under Income Tax Act Section 117

1. ITO v. M/s. S.K. Builders (2017) 82 taxmann.com 123 (SC)

   – Supreme Court held revised return can be filed before assessment completion under Section 117.

2. Commissioner of Income Tax v. Kelvinator of India Ltd. (1981) 128 ITR 294 (SC)

   – Clarified scope of revised returns under the Act.

Key Facts Summary for Income Tax Act Section 117

• Section:

  117

• Title:

  Filing of Revised Returns

• Category:

  Procedure, Return Filing

• Applies To:

  All taxpayers filing under Section 139

• Tax Impact:

  Corrects income and tax liability

• Compliance Requirement:

  File revised return before assessment year end or assessment completion

• Related Forms/Returns:

  ITR forms, Revised Return

Conclusion on Income Tax Act Section 117

Section 117 is a vital provision that empowers taxpayers to rectify errors in their income tax returns. It promotes transparency and accuracy in tax reporting, reducing disputes and penalties. Timely filing of revised returns ensures that taxpayers comply with the law while safeguarding their interests.

With the growth of digital tax administration, Section 117 facilitates easy corrections and updates. Taxpayers, professionals, and businesses must understand this section to maintain proper compliance and avoid legal complications arising from incorrect original returns.

FAQs on Income Tax Act Section 117

What is the time limit to file a revised return under Section 117?

The revised return must be filed before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

Can any taxpayer file a revised return under Section 117?

Yes, any person who has filed an original return under Section 139 can file a revised return to correct errors or omissions.

Does filing a revised return attract any penalty?

No penalty is charged if the revised return is filed within the prescribed time and corrects genuine mistakes.

Can a revised return be filed after assessment is completed?

No, revised returns cannot be filed after the assessment or reassessment has been completed.

Is the revised return treated as the original return for assessment?

Yes, the revised return supersedes the original return and is considered for assessment purposes.