My cousin was trying to file his return on 15th. He is in the non taxable slab. The website was not working well. So, he filed with whatever the prefilled data showed. He had a refund of around Rs. 500/- from tds. Yesterday he filed the revised return under section 139(5) and added his US stock data under the relevant schedules as per his brokers report and some Indian capital gain data. The refund again in this return was the same Rs. 500/- Today he received the intimation and the got the refund in his bank but when he checked he found that they have processed the original return instead of the revised one. Weren’t they supposed to process the revised return? I thought the original return is null and void once the revised return is filed. What to do in this case now?
Hello @tax007
Once a revised return is filed under Section 139(5), it supersedes the original return. However, if the original return was processed before the revised one was picked up, CPC may have processed the original by default. You just need to wait for the revised ITR to be processed. No further action is required at this stage.
Hope, this helps!
Thanks. So, in my cousins case can he sell some funds now for tax loss harvesting considering that he entered the capital gains data in the revised return? Or should he only do that after the revised return is processed and hence carry forward of losses is complete?
My friend filed last month and 2 days later revised his return because he forgot to mention an exempt income. Both his original and revised returns are not processed yet. Is this ok too?
Hello @tax007
Once you file the revised return within the prescribed time limit, your losses will be eligible for carry forward. These carried-forward losses can then be set off against profits in the subsequent financial years.