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, the payment of tax will be necessary. 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 an updated return only once in each assessment year.
Reasons for filing
Shailesh Kumar, Partner, Nangia & Co. LLP said that things have been kept ‘abbreviated’ in this form to facilitate easy filling of required information by the taxpayer. “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 separate 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
Taxes Sandeep Sehgal, Global Partner – Tax, AKM, a tax and advisory company, 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.