Income Tax Deadline: Today is the last day to file updated return for fiscal 2021. Check details here
income tax return for financial year 2020-21 and realised that there were a few mistakes or omissions in that then today is the last date to file an updated return to incorporate the changes. Notably, the provision of filing an updated income tax return (ITR-U) was announced in Budget 2022 by Finance Minister Nirmala Sitharaman when she said that an updated return gives a one-time window to taxpayers to correct any discrepancy or omissions within two years of filing. Although for assessment year 2021-22 (i.e., financial year 2020-21), the last date to file an updated return is today i.e., March 31, 2024, whereas the taxpayers can also file an updated return for the subsequent assessment years of 2022-23 and 2023-24 also.
It is worth mentioning that in order to file an updated income tax return, one has to pay additional tax and interest. Let’s suppose the updated return pertains to assessment year 2021-22, the additional tax would be 50 percent of aggregate of tax and interest. ALSO READ: Rushing to invest in tax-saving instruments? Here's why it may not be a good idea And in case the updated return is being filed for any of the years 2022-23 or 2023-24, the additional tax component would be 25 percent of aggregate tax and interest.
The updated return is filed under section 139(8A) of the Income Tax Act. There could be a number of reasons to file an updated income tax return. These are some of the key reasons: A.
When taxpayer failed to declare income correctly that led to lower income than actual. D. If taxpayer chose the wrong head of income or income tax was, instead, paid under the wrong slab.
E. If there is requirement to reduce the carried forward loss or unabsorbed depreciation. F.
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