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If you realize after filing your Income Tax Return (ITR) that there is an error, there is no need to panic.

The Income Tax Department offers a 'Discard Return' feature for such taxpayers. This allows you to completely remove your ITR before it is verified and file a new one with the correct information.

However, this facility should be used judiciously. Once an ITR is discarded, it is treated as if it was never filed. If a new ITR is filed after the deadline, it will be considered a 'Belated Return,' and the rules associated with late filing may apply.

What is the 'Discard Return' feature?

This Income Tax Department feature applies to Original, Belated, and Revised ITRs, provided the return has not yet been verified. This option can be useful if you spot any of the following errors after filing your ITR:

• Incorrect income details
• Omission of a necessary deduction
• Error in tax calculation
• Incorrect entry of other information
• Once the ITR is discarded, the previous filing is removed from the portal, allowing you to file a new ITR.

Until when can you discard an ITR?

This facility is available only before the ITR is verified. Once e-verification is complete, the return cannot be discarded. Additionally, the Income Tax Department advises against using this feature if you have already sent the physical copy of the ITR-V to the CPC. The good news is that the 'Discard Return' feature can be used multiple times as long as the return remains unverified. This facility is available for ITRs filed from Assessment Year 2023-24 onwards and can generally be utilized up to the filing deadlines applicable under Sections 139(1), 139(4), and 139(5).

How to Discard an ITR?

If you wish to discard your ITR, follow these simple steps:

• Log in to the Income Tax e-Filing Portal.
• Go to 'e-File' and select 'Income Tax Return'.
• Open the 'e-Verify ITR' section.
• Select the relevant ITR and click on 'Discard'.
• Confirm the action.
• Once done, the old ITR will be removed, and you will be able to file a new return.

What is the difference between 'Discard' and 'Revised Return'?

Many people confuse 'Discard Return' with 'Revised Return', but they are different.

• In a 'Revised Return', the original ITR remains on record, and new information is submitted by making corrections to it.
• In a 'Discard Return', the old unverified ITR is completely removed. Subsequently, a new ITR is filed as if no return had been filed previously.
• This is why, if you filed an ITR within the deadline but later discarded it and filed a new return after the deadline, it will be treated as a 'Belated Return' rather than an 'Original Return'. Therefore, ensure you keep the filing deadline in mind before using this facility.