The new form (RTR-U) will be available to taxpayers to file updated income tax returns for the financial years 2019-20 and 2020-21. Taxpayers filing ITR-U will have to give reasons for updating the income. They will have to explain the reason why the return was not filed earlier, or why the correct income information was not given.
New Delhi: The Income Tax Department has notified a new form for filing updated Income Tax Return (ITR). In this, the taxpayers will have to tell the exact reason for filing it along with how much amount is being presented for tax. The new form (RTR-U) will be available to taxpayers to file updated income tax returns for the financial years 2019-20 and 2020-21.
Reasons to be given for updating income
Taxpayers filing ITR-U will have to give reasons for updating the income. They will have to explain the reason why the return was not filed earlier, or why the correct income information was not given. This form can be filed within two years from the end of the relevant assessment year. In the Union Budget 2022-23, taxpayers have been allowed to ‘update’ ITR within two years of filing it. However, before this permission, the payment of taxes will be necessary..
What is its purpose
The purpose of this step is to give an opportunity to rectify the mistake made in the ITR or any information is missing. A taxpayer will be allowed to file updated statement only once in each assessment year. Shailesh Kumar, Partner, Nangia & Co. LLP said that the things have been kept ‘accurate’ in this form to facilitate easy filling of relevant information for the taxpayer. “Besides this, it has also been taken care that only the details of the income which is being presented 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.
Understand these rules
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, said Sandeep Sehgal, global partner-tax, AKM, a tax and consultancy firm. Will happen. At the same time, taxpayers who want to file this form for 2020-21 will have to pay an additional amount of 25 percent of the outstanding tax and interest.
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