ITR submitting: Can taxpayers appropriate revenue tax return filed in earlier fiscals?

ITR submitting: Due date for non-audited revenue tax return (ITR) submitting has gone and people who didn’t file their ITR by the given due date, they should file their return by final date of ITR submitting i.e. thirty first December 2022. While submitting this yr’s ITR, some taxpayers might come throughout some monetary data that ought to have been part of their earlier ITRs. For such taxpayers, the central authorities launched Income Tax Return – Updated (ITR-U), which permits a taxpayer to adjust to their tax tasks with out entering into hassles of the regulation. Finance Minister Nirmala Sitharaman made an announcement on this regard whereas presenting the union finances in February 2022.

Speaking on ITR-U, Aarti Raote, Partner at Deloitte India mentioned, “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.”

“You can file ITR-U for FY 2019-20 by 31st March 2023 and so on for subsequent assessment years. Only one ITR-U can be filed for each assessment year. The government is giving the facility through ITR-U to voluntarily disclose any income which was unaccounted for and come clean after paying an additional 25 per cent / 50 per cent tax of the amount of income missed to be reported. According to the reports, taxpayers have started using the facility and about 1 lakh ITR-U have been filed by now,” mentioned Archit Gupta, Founder & CEO at Clear.

While talking on ITR-U, CBDT Chairman Nitin Gupta informed PTI that scheme was introduced by the Union authorities for the advantage of taxpayers in order that they’ll adjust to their tax tasks with out entering into hassles of the regulation.

“We have got around 1 lakh returns… (under the ITR-U). The taxpayer may have paid additional tax or they may be a new filer. Around ₹28 crore worth tax collection has been done under this scheme so far,” Nitin Gupta of CBDT mentioned including, “This is a provision for taxpayers to come forward and pay taxes rather than face the consequences of penalty or any other legal action under the income tax law.”

Taxpayers submitting ITR-U type, which may be filed inside 2 years of the top of the related evaluation yr, must give causes for updating the revenue — return beforehand not filed or revenue not reported accurately or incorrect heads of revenue chosen or discount of carried ahead loss.

“Taxpayers have started using the facility and about 1 lakh ITR-U have been filed by now. The Income-tax department has collected around ₹28 crore in taxes through the updated returns,” mentioned Archit Gupta of Clear.

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