This financial year is going to end in a few days, along with which many deadlines are also ending. This time of the financial year becomes important from the income tax point of view. One of the deadlines that are ending with the financial year on March 31 is the deadline for filing ITR-U i.e. Updated Income Tax Return.
What is Updated Income Tax Return?
The Income Tax Department gives taxpayers an opportunity to correct their mistakes. For this purpose, provision of ITR-U has been made. If you have given any wrong information in the old income tax return or have forgotten to show any income, then you can correct it by filing an updated return. Even if you have not filed a return before, you can file a new return through updated return.
You get the opportunity to file ITR-U for 2 years
Last date to file updated return. The date is 31st March. Using the updated return, taxpayers can revise the return up to 2 years from the relevant assessment year. That is, the deadline ending on March 31, 2024, is to file updated income tax return for the financial year 2020-21 or assessment year 2021-22.
Penalty can be up to 200%< /h3>
The facility to file updated income tax returns has started from April 1, 2022. This is a great opportunity for those taxpayers who have missed any information in the old ITR or who have not been able to file the return even after being required to file it as per the income tax rules. The consequences of missing this last opportunity can be very heavy, because if caught by the Income Tax Department, a penalty of up to 200 percent of the payable tax is imposed. h3>
Taxpayers also have to pay a good amount for filing updated returns. Additional tax equal to 25 per cent of the tax liability and interest has to be paid by filing updated returns within 12 months of the end of the relevant assessment year. Whereas if updated return is filed after 12 months and before 2 years, 50 percent additional tax has to be paid. Taxpayers filing updated returns for FY 2020-21 or Assessment Year 2021-22 can rectify the mistake or file a new ITR after paying 50% extra tax by March 31, 2024. Also read: This multibagger penny stock rose 2600% in 4 years
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