Big news has come on Income Tax. If you ignore this rule, then you may have to pay 50 percent extra tax along with interest.
Big News: For the financial year 2022-23 (assessment year 2023-24), taxpayers will have to file their updated income tax return (ITR-U) before 31 March 2025. If he files on time, then high penalty and additional tax can be avoided.
What is updated ITR?
Income Tax Return – U is a form. Through this, taxpayers can make changes in the previously filed income tax return. Also, permission is given to re-fill the missed income. It was introduced in 2022 and taxpayers can file it within two years of the relevant assessment year. If a person has not filed the original or late return, then he can also file an updated return through ITR-U.
Extra tax will increase on delay in tax filing
The Income Tax Department has urged taxpayers to file ITR-U on time. This includes a separate tax of 25 percent and interest before March 31, 2025. At the same time, after March 31, 2025, 50% extra tax and interest will be charged.
New rule applicable from April 2025
The government is planning to extend the time limit for filing ITR-U from two years to four years. This will give taxpayers more time to declare undeclared income, but the penalty will also be higher. So far, more than 90 lakh updated ITRs have been filed in the last four years, filling the government treasury with Rs 9,118 crore.
