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Updated returns, also known as form ITR-U, is a new flexibility introduced by the government in the Union Budget 2022.
The last date to file ITR was January 15.
The extended deadline for filing Income Tax Returns (ITR) has passed. Despite the Central Board of Direct Taxes (CBDT) extending the due date for filing belated/revised ITR to January 15, many might have missed the chance. If you are also among them, fret not. Taxpayers can still file ‘updated returns,’ but it will come with penalties and restrictions.
Taxpayers who have missed the original (July 31, 2024), belated (December 31, 2024), and the extended (January 15, 2025) deadlines can still file ‘updated returns’ for the assessment year 2024-25 (financial year 2023-24) by March 31, 2027. If you failed to file your ITR for the assessment year 2022-23 (financial year 2021-22) or wish to rectify errors, submit updated returns by March 31.
Notably, updated returns, also known as form ITR-U, is a relatively new flexibility that was introduced by the government in the Union Budget 2022. This form can be filed only within two years from the end of the relevant assessment year. As per Section 139(8A), individuals are allowed to file an updated return even if they person has already filed the original, belated, or revised return for the relevant assessment year. This decision allows taxpayers to rectify errors or include additional details that were missed in the original ITRs, thus avoiding penalties or litigation.
Note that you cannot file an updated return to reduce the tax liability in the original return or to claim refunds. Similarly, if any search, survey, or assessment is underway, you cannot file updated returns.
Here are the quick steps to file an ITR for FY 2023-24:
Step 1: Go to the official Income Tax e-filing website at www.incometax.gov.in.
Step 2: Enter your user ID and password to log in to your account.
Step 3: Look for ‘ITR Form U’ on the homepage to file an updated return.
Step 4: Enter all the relevant details as asked, including the reason behind filing an updated return.
Step 5: Preview the form thoroughly and hit the submit button.
Missing the ITR filing deadline can lead to various consequences, including penalties, interest accrual on outstanding taxes, and potential scrutiny from the tax authorities. Mainstay Tax Advisors Partner Kuldip Kumar said, “Besides paying the tax due and interest, if any, you will have to cough up a penalty of 25-50 per cent on the tax and interest due, if any,” Money Control reported.
The penal rate would be 25 per cent of the aggregate tax and interest payable if the updated return is filed within 12 months from the end of the assessment year. However, if it is filed within 24 months from the end of the assessment year, the penalty is much higher at 50 per cent.
