Income Tax :Big News! The government has amended the rules related to Income Tax, it is very important for you to know these changes.

The government has made amendments in some of the proposals of Budget 2022 in the Lok Sabha. Mainly this amendment is related to income tax. 

Regarding cryptocurrencies, the government has also clarified that the profit or loss in one crypto cannot be set off from the profit and loss of another crypto.

The government has introduced some amendments to the Budget 2022 in the Lok Sabha. After these amendments related to income tax, now the income tax payer will be able to update the loss return as well.

At the same time, the Income Tax Department has also got additional time to complete the assessment for the assessment year 2020-21. Earlier the assessment was to be completed by 31 March 2022, the deadline for which has now been extended to 30 September 2022.

The budget was presented on February 1, 2022. After the responses from the general public and experts, the government usuallyBudgetAmends the proposals and they are introduced in the Lok Sabha. Experts say that the budget amendment, presented on Thursday, is very important for the general public due to its related to income tax.

Loss return can be updated

The provision of updated returns was introduced in Budget 2022. This is for those income tax payers who have missed some income declaration. An updated return can be filed within 2 years from the end of an assessment year.

For example, if you miss to declare some income for the financial year 2021-22, it gets translated into the assessment year 2022-23. According to the new provisions, you can file updated returns till the financial year 2024-25.

After the amendment introduced in the Lok Sabha on Thursday, now this facility has also been started for loss returns. A loss return is one where net loss is declared and no tax is payable. Updated return is the return which is filed by you within two years of any assessment year.

In the updated return, you include the income that you forgot to include in the ITR earlier and you have to pay both tax and penalty on it. Bengaluru-based chartered accountant Prakash Hegde told Live Mint that the amended Finance Bill allows individuals who filed loss returns to be allowed to file updated returns.