Updated income tax return: The Income Tax Department has given an opportunity to the taxpayers to file updated returns for the financial years 2019-20 and 2020-21. Updated returns have been announced in Budget 2022.
If you come under the tax net, then it is good to file Income Tax Return in time. This saves you from many problems. If you have not filed returns for the financial years 2019-20 and 2020-21 due to any reason, then there is good news for you. Such taxpayers can file their return again. The Income Tax Department (CBDT) has notified the updated return i.e. ITR-U. Keeping in mind the troubles of the taxpayers, Finance Minister Nirmala Sitharaman announced the updated return while presenting the Budget 2020.
What happens in Updated Return (ITR-U)?
Finance Minister Nirmala Sitharaman announced the updated return under section 139(8A) of the Income Tax Act in the Finance Act 2022. Under this, an updated return (ITR-U) can be filed for any financial year within the next 24 months from the end of the assessment year. It has been implemented from the financial year 2019-20. If a taxpayer has not filed original return, belated return or revised return, he can also file ITR-U.
When is the chance to file the updated return?
As per the rules, the assessment year for the financial year 2019-20 ends on March 31, 2021. There is a chance for them to file updated returns by 31 March 2023. Similarly, the assessment year deadline for the financial year 2020-21 ended on March 31, 2022. Such taxpayers have a chance to file updated returns by 31 March 2024.
The reason for the updated return will also have to be given.
If a taxpayer wants to file an updated return, then he has to give the reason for it. Here eight types of reasons are mentioned. In these reasons, options like non-filing of returns, not giving proper information of income have been given. Apart from this, the taxpayer has to select the appropriate form for himself in different forms of income tax return.
Additional tax to be paid up to 50%
Penalty will have to be deposited on filing the updated return. If ITR-U is filed within 12 months of the end of the assessment year, an additional tax of 25% will be levied. If the updated return is filed after 12 months and within 24 months, then 50% additional tax will be levied. This return cannot be filed unless there is some additional tax liability on you.
