Last updated: January 10, 2023, 11:29 AM IST
In these circumstances, one has the choice to file an updated tax return (ITR U).
In these circumstances, one has the choice to file an updated tax return (ITR U).
The Indian Income Tax Act allows people to file their return for the previous year three months after the end of the relevant AY or before the close of assessment, whichever comes first. So someone who did not file their income tax return before July 31, 2022 for the fiscal year 2021-2022 (AY 2022-23) had the option to file their late tax return before December 31, 2022. But what happens if someone misses this deadline too?
In these circumstances, one has the choice to file an updated tax return (ITR U). This option has been made available in the 2022 Budget and is accessible up to 24 months after the end of the applicable assessment year against payment of an additional assessment of 25-50% on the interest-bearing tax.
Regardless of whether an individual filed an original, late, or revised ITR or missed the form altogether in a specific fiscal year, an updated ITR (ITR-U) can only be filed if a taxpayer needs to report new income. However, there are some circumstances where an individual cannot submit an updated ITR. Among other things, a person can file an ITR-U if they missed the deadline or change their ITR if they failed to disclose their income earlier. ITR-U cannot be used to declare a loss, get an income tax refund or do other similar things.
If ITR-U for FY 2021-22 (AY 2022-23) is filed within the first relevant tax year, which is between April 1, 2023 and March 31, 2024, an individual will also be responsible for paying 25% more tax on the indebted taxes. ITR-Us must pay an additional 50% of the tax due if filed between April 1, 2024 and March 31, 2025.
Under a new regulation from the Central Board of Direct Taxes (CBDT), ITRs filed after July 31 must be updated within 30 days, as opposed to the prior 120 days of filing the return. If a person submitted a revised or late ITR in December, they must confirm it before the deadline in January. ITRs must be verified within 30 days or they will become invalid.
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