With a very tight schedule, almost a month has passed since the last date for filing income tax returns this time. Many such taxpayers have reported their problem whose some income was left out from inclusion in ITR. Tax experts are telling a very simple solution to this problem.
Income tax experts and CA Sachin Srivastava says that if you have forgotten to mention any of your income in ITR, then it can be rectified by filing an updated return (ITR-U) for the next two years. The government has started this facility from this financial year and taxpayers have also started getting it from April 1, 2022. This was proposed by the Finance Ministry in the Finance Act 2022. For this, sub-section 8(A) has been added in section 139 of Income Tax.
What facilities will be available in this –
Taxpayers can rectify the mistakes and omissions in the previously filed ITR through updated returns. This work can be done even after the time of custom ITR is over.
You can avail the ITR-U facility for 2 years after the ITR assessment date has passed
.
The Income Tax Department provides separate forms for ITR-U to taxpayers.
If you have to update or make some corrections in your old ITR, then the Income Tax Department also imposes some penalty for filing ITR-U . If the ITR-U is being filed within 12 months of the date of assessment, a penalty of 25 per cent will have to be paid, but if you opt to file the ITR-U within 24 months, the penalty amount will increase to 50 per cent. The last date for filing ITR-U for the financial year 2021-22 has been kept as March 31, 2025.
When
taxpayers try to reduce their tax liability through updated returns, then this facility will not be given. However, through this, the tax and penalty associated with the disclosure of additional income will be levied on your part. Apart from this, you cannot use this form even if the department has started the assessment proceedings against you or has started the survey.
This facility will be available only once
. Even though the Income Tax Department gives you two years to file the updated ITR, the taxpayer can avail it only once. If you have filed the updated ITR, then the ITR-U of the respective financial year cannot be filled again. The government has started this facility from this year after the incidents of income missing in ITR by many taxpayers.
