The government has decided on the last date to file an updated ITR or ITR-U for the financial year 2019-20, which is 31 March 2023. Introduced under the Finance Act of 2022 the concept of filing an ITR-U or updated income tax return allows an assessed to take longer time than normal to file their return. Moreover, if a taxpayer has failed to disclose any type of income source or figure then they still have the chance to mention them on ITR-U. “In the Union Budget 2022, the government introduced the ITR U form for updating income tax returns. The ITR-U form is a rescue for those who have not filed their ITR or made inaccurate and false entries while filing their income tax returns. For instance, for FY 2019-20 (AY 2020-21), an updated return can be filed by 31 March 2023,” said Abhishek Soni, CEO and Co-Founder of Tax2win, as quoted by Livemint.
What is ITR-U?
ITR-U or an Updated Income Tax Return is filed by a taxpayer to omit, modify or correct any type of mistake that occurred in the originally filed ITR. Moreover, they are allowed to mention any source of income that they have filed to disclose before. A taxpayer is allowed to file ITR-U till 2 years from the end of the relevant assessment year. Also, an individual can file only one updated ITR for each assessment year.
How Much Time Does a Person Have to File ITR-U?
- The last date to file ITR-U for any person automatically becomes 31st March of the 2nd year starting from the end date of the relevant assessment year.
Who is Eligible to File ITR-U?
- Every individual who has committed a mistake or forgot to mention details in the original, belated or revised income tax return is eligible to file ITR-U for 2 years from the end of the relevant AY.
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So, How Much Additional Tax Do You Need to Pay for ITR Filing?
- “The total tax liability a taxpayer must pay will be Tax payable + 50% of additional tax + interest + Late filing Fees ( if applicable),” mentioned by Livemint.