The Indian income tax regulation permit people to file their return for the previous year, three months later than the end of the relevant AY or before the conclusion of the assessment, whichever comes first. So, someone who hadn’t submitted their income tax return by July 31, 2022, for the fiscal year 2021–2022 (AY 2022-23) had the option to file their belated tax return by December 31, 2022. But what happens if someone also misses this deadline?
In these circumstances, one has the choice to submit an updated tax return (ITR U). This option was made available in the Budget 2022 and is accessible for up to 24 months following the conclusion of the applicable assessment year by paying an additional tax of 25–50% on interest-bearing tax.
Regardless of whether a person filed an original, belated, or revised ITR or altogether missed filing the form in a specific financial year, an updated ITR (ITR-U) can only be submitted if a taxpayer has new income to report. However, there are some circumstances in which a person cannot file an updated ITR. A person can, among other things, file an ITR-U if they missed the deadline to do so or modify their ITR if they neglected to disclose income earlier. ITR-U cannot be used to declare a loss, get an income tax refund, or do other things like that.
If ITR-U for FY 2021-22 (AY 2022-23) is filed within the first relevant assessment year, which is between April 1, 2023, and March 31, 2024, a person will also be responsible for paying 25% more tax on the tax due. ITR-Us must pay an additional 50% of the tax payable if they are submitted between April 1, 2024, and March 31, 2025.
According to a new regulation put forth by 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 an individual has submitted a revised or belated ITR in December, they must confirm it in January before the deadline. ITRs must be verified within 30 days, or they end up becoming invalid.
Read all the Latest Business News here