New Delhi. Income tax payers will be able to update their Income Tax Return (ITR) only once in an assessment year. Central Board of Direct Taxes (CBDT) Chairman JB Mohapatra said on Wednesday that the purpose of this provision is to give an opportunity to those people who have omitted any information in ITR or have filled any wrong information or who Couldn’t do it for some reasonable reason.
Speaking at the Confederation of Indian Industry (CII) program, Mohapatra said the Budget 2022-23 has allowed taxpayers who have made some mistake or details in filing ITR within two years of filing it. is dropped. Taxpayers will be able to update their ITR by paying tax.
Will build trust in taxpayers
At present, there is a rule that if a taxpayer fails to file ITR, then he cannot file the return of his own free will. On receipt of notice or after getting permission from the Income Tax Department, after answering the questions of the department, there is an exemption to file the return. There is a long and complicated rule of filing returns. The new rule gives freedom from this and instills confidence in the taxpayer.
Will have to pay additional tax
Mohapatra said that if the updated ITR is filed within 12 months, then an additional amount of 25 percent will have to be paid on the outstanding tax and interest. If a taxpayer files his updated return after 12 months, the payment amount will increase to 50 per cent. But, it has to be filed within 24 months of the relevant assessment year.
They will not get the benefit of the facility
The CBDT chairman said that this facility will not be available to all taxpayers. If prosecution proceedings have been initiated by issuing notice to a taxpayer for any assessment year, then he will not get the benefit of updating ITR. Also, if a taxpayer files an updated return but does not pay the additional tax, his return will become invalid.
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