Form Notified For Filing Updated Income Tax Returns

The Income Tax department has notified a new form for filing updated I-T returns (ITRs) in which taxpayers will have to give the exact reason for filing it along with the amount of income to be offered to tax..The new form (ITR-U) will be available to taxpayers for filing updated income tax returns for 2019-20 and 2020-21 fiscals. Taxpayers filing ITR-U, which can be filed within two years of the end of the relevant assessment year, will have to give reasons for updating the income tax return previously not filed or income not reported correctly or wrong heads of income chosen or reduction of carried forward loss..The reasons given in the form also include reduction of unabsorbed depreciation or reduction of tax credit u/s 115JB/115JC or wrong rate of tax or any other reasons given by the taxpayers..The Budget 2022-23 has permitted taxpayers to update their ITRs within two years of filing, subject to payment of taxes, a move aimed at helping correct any discrepancy or omissions..A taxpayer would be permitted to file only one updated return per assessment year..Nangia & Co LLP Partner Shailesh Kumar said the layout of the form has been kept very precise to help the assessee input the relevant information easily. ."Further, it may be noticed that only amount of income to be offered to tax is to be specified under the prescribed income heads. No break-up of income or any details information is required to be submitted, unlike the regular ITR forms and the exact reason for filing the updated return is to be submitted in the form itself," Mr Kumar said. ."To provide an opportunity to correct such errors, I am proposing a new provision permitting taxpayers to file an updated return on payment of additional tax. This updated return can be filed within two years from the end of the relevant assessment year," Finance Minister Nirmala Sitharaman had said in her 2022-23 Budget speech..An additional 25 per cent on the due tax and interest would have to be paid if the updated ITR is filed within 12 months, while the rate will go up to 50 per cent if it is filed after 12 months, but before 24 months from the end of relevant Assessment Year. .However, if a prosecution proceeding is initiated by issuing notice for a particular Assessment Year, taxpayers cannot avail updated return benefits in that particular year. Also, if a taxpayer files an updated return and does not pay the additional taxes then the return would be tendered invalid.

Form Notified For Filing Updated Income Tax Returns

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