ITR: The Income Tax Department has issued a new form for filing updated IT returns. In this, the taxpayer has to tell the actual reason for filing as well as the income offered for tax.
New Form ITR-U will be available for taxpayers to file updated Income Tax Return (ITR) for 2019-20 and 2020-21.
ITR-U can be filed within two years from the end of assessment year
ITR-U can be filed within two years from the end of the relevant assessment year. Taxpayers filing this will have to provide the reason for updating their income. They have to explain why the return was not filed earlier or why the correct income information was not given.
The Union Budget, 2022-23 has allowed taxpayers to ‘update’ ITR within two years of filing it. However, before this permission will be required to pay the tax. The purpose of this step is to give an opportunity to rectify the mistake or missing information in the ITR. A taxpayer will be allowed to file an updated return only once in each assessment year.
Must state the reason for filing
Shailesh Kumar, Partner, Nangia & Co. LLP said that the things have been kept ‘concise’ in this form to facilitate the taxpayer to fill the required information easily. “Besides this, care has also been taken that only the details of the income which is being claimed for tax needs to be given. In this, there will be no need to provide details of income in different heads like in the regular ITR form. The reason for filing the updated income tax return will also have to be mentioned in the form itself.
Additional amount to be deposited
Tax and advisory company AKM’s Global Partner-Tax Sandeep Sehgal said that taxpayers who wish to file this form for 2019-20 will have to pay an additional 50 per cent of such tax and interest along with outstanding tax and interest. Will happen.
At the same time, the taxpayer who wants to file this form for 2020-21 will have to pay an additional amount of 25% of the outstanding tax and interest.
