Income tax return: ITR-U enables a taxpayer to comply with their tax responsibilities without getting into hassles of the law
ITR filing: Due date for non-audited income tax return (ITR) filing has gone and those who failed to file their ITR by the given due date, they need to file their return by last date of ITR filing i.e. 31st December 2022. While filing this year’s ITR, some taxpayers may come across some financial information that should have been a part of their previous ITRs. For such taxpayers, the central government introduced Income Tax Return – Updated (ITR-U), which enables a taxpayer to comply with their tax responsibilities without getting into hassles of the law. Finance Minister Nirmala Sitharaman made an announcement in this regard while presenting the union budget in February 2022.
Speaking on ITR-U, Aarti Raote, Partner at Deloitte India said, “ITR-U is the tax return form in which tax payers can file tax returns for assessment year two years prior to the current assessment year i.e. tax payer can file an updated return for AY: 2020-21 in FY: 2022-23 to offer to tax additional income. Thus an updated income tax return gives a chance to the tax payer for coming clean to the authorities if they have missed filing a tax return in the earlier year or have missed reporting some income. One would need to pay additional income-tax of 25 per cent of if the return is filed within 1 year and gets enhanced to 50 per cent.”