Income Tax Department: A very special information has come to light for those filing income tax returns. The Income Tax Department has fixed March 31 as the last date for filing updated returns (ITR-U). In fact, the IT department has received information about many taxpayers who have messed up the information in their returns or have not filed ITR at all. These people have been given the last chance by the department to correct their mistakes. They can correct these mistakes by filling ITR U.

Correct information about interest and dividend income was not given

According to the information received from the Income Tax Department, many taxpayers have not given correct information about interest and dividend income received from third parties in the income tax returns. Many taxpayers have not filed returns. The Income Tax Department has identified these people.

Besides, a chance has also been given to rectify the mistakes till 31st March. For this you will have to go to the e-filing portal and file an updated return. This information is being given by the department to the taxpayers by sending SMS and email.

Big transactions not disclosed in ITR

The Income Tax Department has received information about such financial transactions from various sources. This has been made available through Annual Information Statement (AIS). Taxpayers can see this easily. The Income Tax Department is trying to ensure that people pay taxes voluntarily and maintain transparency.

This mismatch has been found in some income tax returns filed in the assessment year 2021-22 (FY 2020-21). The department has come to know that there is a difference between the information given in the ITR and the financial transactions available with the IT department. Therefore, people have been given the opportunity to file updated returns.

Investigation against those who do not file ITR

Besides, investigation is also being done against those who do not file ITR after making big financial transactions. Under the e-Verification Scheme-2021, the department is sending information to these people through email. Through these, the department is requesting the taxpayers to check their AIS through the e-filing portal

https://eportal.incometax.gov.in. Also file ITR-U if required. If taxpayers are not registered on the e-filing website then they will have to register. If taxpayers are unable to correct the mismatch, they can still report the income correctly through an updated income tax return.

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You can use the option of ITR-U. In this news, we are going to tell you about this. According to section 139 (1) of the Income Tax Act, the last date for filing ITR in the year 2021-22 was 31 July 2022. For those who could not file ITR till this date, the last date was 31 December. If there was any mistake or correction in the returns, that too could be done by this date. But if you have missed the deadline of December 31, then you can file ITR-U under section 139 (8A).

What is ITR-U?

In Budget 2022, the Government of India had brought the option of ITR-U. This facility is beneficial for those taxpayers who have not been able to file their ITR or have made mistakes in previous returns. Through ITR-U, taxpayers can correct mistakes or omissions in their ITR for two years from the end of the relevant assessment year. In the assessment year 2021-22, you can file ITR-U by 31 March 2024. Similarly, for 2022-23, you can file ITR-U till 31 March 2025.

In ITR-U, you can show that income, which you could not show in your previous return. Moreover, this facility is available to anyone, whether or not he has filed original, late or revised ITR. If someone has forgotten to file ITR in any financial year, he can also use it.

Last Dates for Filing ITR-U

Assessment Year 2020-21: 31 March 2023

Assessment Year 2021-22 : 31 March 2024

Assessment Year 2022-23: 31 March 2025

Penalty for not filing ITR-U

You will also have to pay the penalty for not filing ITR-U. If you have forgotten to show any income, then you will have to pay an additional 25 percent of the tax and interest payable on it. This should be done within one year from the end of that financial year. If you are filing ITR-U after one year of the relevant assessment year and within two years, the penalty will go up to 50 percent.

Where to file ITR-U?

For this you have to go to the website of Income Tax Department.

Where you cannot use ITR-U?

Taxpayers cannot use ITR-U for filing zero return/loss return. It cannot be used to claim or extend refunds. Also, ITR-U is not allowed to be used to set off income tax liability from returns filed earlier.

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Income tax experts and CA Sachin Srivastava says that if you have forgotten to mention any of your income in ITR, then it can be rectified by filing an updated return (ITR-U) for the next two years. The government has started this facility from this financial year and taxpayers have also started getting it from April 1, 2022. This was proposed by the Finance Ministry in the Finance Act 2022. For this, sub-section 8(A) has been added in section 139 of Income Tax.

What facilities will be available in this –
Taxpayers can rectify the mistakes and omissions in the previously filed ITR through updated returns. This work can be done even after the time of custom ITR is over.
You can avail the ITR-U facility for 2 years after the ITR assessment date has passed
.
The Income Tax Department provides separate forms for ITR-U to taxpayers.

If you have to update or make some corrections in your old ITR, then the Income Tax Department also imposes some penalty for filing ITR-U . If the ITR-U is being filed within 12 months of the date of assessment, a penalty of 25 per cent will have to be paid, but if you opt to file the ITR-U within 24 months, the penalty amount will increase to 50 per cent. The last date for filing ITR-U for the financial year 2021-22 has been kept as March 31, 2025.

When
taxpayers try to reduce their tax liability through updated returns, then this facility will not be given. However, through this, the tax and penalty associated with the disclosure of additional income will be levied on your part. Apart from this, you cannot use this form even if the department has started the assessment proceedings against you or has started the survey.

This facility will be available only once
. Even though the Income Tax Department gives you two years to file the updated ITR, the taxpayer can avail it only once. If you have filed the updated ITR, then the ITR-U of the respective financial year cannot be filled again. The government has started this facility from this year after the incidents of income missing in ITR by many taxpayers.

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What happens in Updated Return (ITR-U)?

Finance Minister Nirmala Sitharaman announced the updated return under section 139(8A) of the Income Tax Act in the Finance Act 2022. Under this, an updated return (ITR-U) can be filed for any financial year within the next 24 months from the end of the assessment year. It has been implemented from the financial year 2019-20. If a taxpayer has not filed original return, belated return or revised return, he can also file ITR-U.

When is the chance to file the updated return?

As per the rules, the assessment year for the financial year 2019-20 ends on March 31, 2021. There is a chance for them to file updated returns by 31 March 2023. Similarly, the assessment year deadline for the financial year 2020-21 ended on March 31, 2022. Such taxpayers have a chance to file updated returns by 31 March 2024.

The reason for the updated return will also have to be given.

If a taxpayer wants to file an updated return, then he has to give the reason for it. Here eight types of reasons are mentioned. In these reasons, options like non-filing of returns, not giving proper information of income have been given. Apart from this, the taxpayer has to select the appropriate form for himself in different forms of income tax return.

Additional tax to be paid up to 50%

Penalty will have to be deposited on filing the updated return. If ITR-U is filed within 12 months from the end of the assessment year, an additional tax of 25% will be levied. If the updated return is filed after 12 months and within 24 months, then 50 per cent additional tax will be levied. This return cannot be filed unless there is some additional tax liability on you.

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