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Missed 31 Dec deadline? You can replace the ITR

2 min read

The final date to file revised or belated earnings tax return (ITR) for monetary 12 months 2021-22 was 31 December 2022. If you’ve missed this deadline, then the choice is to file an up to date tax return (ITR U). This possibility was launched in Budget 2022 and is out there for as much as 24 months from the top of the related evaluation 12 months.

ITR U can solely be filed if a taxpayer has further earnings to declare, regardless of whether or not they have filed unique ITR or not. “If somebody needs to say TDS refund by submitting ITR U, that may’t be carried out because it can’t be used to file a zero tax return. A loss return can also’t be filed as reporting losses to be set off can scale back tax outgo. One can solely pay further taxes in an up to date return,” stated Sujit Bangar, founder, TaxBuddy.

This is what differentiates a revised and an up to date return. “A revised return helps you to appropriate errors within the unique ITR, which can scale back your internet taxable earnings and last tax legal responsibility. But an up to date return is filed provided that there may be further tax to be paid,” stated Jigar Mansatta, a Jamnagar-based chartered accountant.

Income reported in ITR U attracts greater tax and penalties. ITR U, filed inside 12 months, attracts 25% tax and that filed inside 24 months attracts 50% tax on the mixture of further tax and curiosity accrued on it. This is over and above the tax levied as per the common tax slab.

To clarify with an instance, say, you declared taxable earnings of ₹6 lakh within the unique ITR and accordingly paid a tax of ₹32,500 on it. You have missed reporting ₹1 lakh earnings initially, so that you file ITR U to replace whole taxable earnings to ₹7 lakh. Your tax legal responsibility will work out to ₹20,000 (as per tax slab) + 25% of 52,500 ( ₹32,500+ ₹20,000) + 1% month-to-month curiosity accrued on the extra ₹20,000 tax with impact from August 2022.

Verification deadline

ITRs filed after 31 July have to be revised inside 30 days (from the earlier 120 days) of submitting the return, as per a brand new rule launched by The Central Board of Direct Taxes (CBDT).

This means when you filed a final minute revised or belated ITR in December, you have to confirm it in January earlier than the due date. Failing to confirm ITR inside 30 days will make it invalid.

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