New ITR submitting: How a lot do you must pay for submitting up to date earnings tax return

Finance Minister Nirmala Sitharaman has not introduced any change within the earnings tax slab charges whereas presenting Union Budget 2022. However, the Finance Minister has given some respite to folks submitting their revised Income Tax Return (ITR). FM has introduced that the revised tax submitting window will stay open for 2 years from the 12 months of evaluation in case of much less submitting of tax.

“To provide an opportunity to correct such errors, I am proposing a new provision permitting taxpayers to file an updated return on payment of additional tax. This updated return can be filed within two years from the end of the relevant assessment year,” Sitharaman stated in her Budget speech.

How a lot do you must pay for submitting an up to date earnings tax return (ITR)?

“It is proposed that an amount equal to 25 per cent or 50 per cent as additional tax on the tax and interest due on the additional income furnished would be required to be paid,” stated the Budget memorandum.

When reporting such further earnings, the taxpayer can be required to pay further tax. “This supply doesn’t come low-cost. Those who want to come clear must pay an additional quantity expressed in share phrases of tax and curiosity payable on the time of furnishing the ITR if the up to date ITR is furnished inside 12 months (25%) or after 12 months however inside 24 months (50%),”stated tax knowledgeable Balwant Jain.

He added that the introduction of Annual Information Return (AIS) has instilled a way of concern within the thoughts of taxpayers who’ve been evading paying full tax. “Since the federal government doesn’t have the requisite bandwidth to trace and chase the taxpayers who haven’t totally declared their earnings or haven’t filed their ITR the place the tax influence isn’t very vital, it has come out with a novel concept to supply the taxpayer the prospect to come back clear on their very own however with sure further price by importing an up to date ITR by paying the tax inside two years from the top of the evaluation 12 months earlier than the earnings tax departments discover it out,” he stated.

While all taxpayers have the avenue of revising their tax returns in a restricted window of 5 months from the due date of submitting of tax returns, now the up to date return will be filed inside a interval of two years from the top of the related evaluation 12 months. The up to date return can’t be filed to report further loss or lower within the tax legal responsibility. The tax is required to be paid earlier than the submitting of the up to date tax return and the proof to that extent is required to be hooked up whereas submitting the up to date return.

As per the Budget memorandum, a brand new provision in part 139 of the I-T Act is being launched for submitting an up to date return of earnings by any particular person, whether or not he has filed a return beforehand for the related evaluation 12 months, or not.

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