If you come under the tax net, then it is good to file Income Tax Return in time. It 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 the return again. The Income Tax Department (CBDT) has notified the updated return i.e. ITR-U.
What Happens in Updated Return (ITR-U)?
Finance Minister Nirmala Sitharaman announced the updated returns 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. It has been implemented from the financial year 2019-20. If a taxpayer has not filed original return, belated return or amended return, he can also file ITR-U.
When is there a chance to file an updated return?
Taxpayers have a chance to file updated returns by March 31, 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 March 31, 2024.
Reason for updated return also to be given
If a taxpayer wants to file an updated return, then he has to give the reason for it. Eight types of reasons are mentioned here. In these reasons, options like non-filing of returns, not giving correct information of income have been given. In addition, the taxpayer has to select the appropriate form for himself in the various forms of income tax return.
Additional tax will have to be paid up to 50%
Penalty will have to be paid on filing the updated return. If ITR-U is filed within 12 months from the end of the assessment year, then 25% additional tax will be levied. If the updated return is filed after 12 months and within 24 months, then 50 per cent additional tax will be levied. This return cannot be filed unless you have some additional tax liability.