All types of taxpayers i.e. Individuals, HUFs, Firms, Companies etc. are eligible to file updated Income Tax Return.
New Delhi: For the financial year 2023-24, more than 6.77 crore taxpayers have filed income tax return till the last date of 31 July. Taxpayers have been given the facility to file updated Income Tax Return (ITR) by the government from Budget 2022. It is also called ITR-U.
What is updated return?
The Central Board of Direct Taxes ie CBDT has given the facility to income tax payers that if any details have been missed after filing ITR on time, then they get the facility to file updated ITR to correct it. Updated ITR protects taxpayers from possible notices, penalties and action from the Income Tax Department that they may have to face due to incomplete details.
Who can file updated return?
Updated ITR can be filed by every taxpayer, whether he has filed ITR earlier or not. Under income tax rules, updated ITR can be filed within 24 months from the end of the assessment year. However, its tax has to be paid extra. It is to be noted that an updated return cannot be filed to claim refund of tax paid.
Deadline to file ITR-U
According to income tax rules, updated returns can be filed for the financial year 2020-21 (AY 2021-22) by 31 March 2024. Whereas, ITR-U can be filed by 31 March 2025 for the financial year 2021-22 (AY 2022-23).
For example, if a taxpayer has filed ITR for FY 2021-22 and it has come to his notice that some income has not been reported in the original ITR, the updated return can be filed by March 31, 2025. Similarly, for the financial year 2022-23, individual taxpayers are eligible to file updated ITR by 31 March 2026.
These options have to be selected to file updated ITR
It may be noted that all types of taxpayers i.e. Individuals, HUFs, Firms/LLPs, Companies, AOPs, BOIs etc. are eligible to file updated returns. However, they have to specify the reason for updating ITR and choose any of the applicable options given below.
- ITR has not been filed earlier.
- Correct income information was not given.
- Wrong option of income was selected.
- Reduction in tax credit under section 115JB/115JC.
- Incorrect rate of tax.
- Other
