Let us know how a common taxpayer will benefit from this initiative of the government. If you also have to file your updated return, then how will you be able to do it. We are trying to answer all your questions.

What is Updated ITR (ITR-U)?

Updated ITR (ITR-U) is a form that allows taxpayers to update their income tax returns. They can file their returns using this form if they have missed filing the original or belated returns or need to correct errors in previously filed returns. However, taxpayers cannot use ITR-U to claim refunds, reduce tax liability or set off losses.

Who can file ITR-U?

Any taxpayer who has made any mistake or omitted income details in any of the following returns can file an updated return.

When to file ITR-U?

Taxpayers will have to pay additional tax while filing ITR-U. The rate depends on how late the updated return is filed.

• File ITR-U within the additional tax due
• 25% of tax + interest within 12 months from the end of the relevant Assessment Year (AY)
• 24 months from the end of the respective AY 50% of tax + interest
• 60% of tax + interest 36 months from the end of the respective AY
• 48 months from the end of the respective AY 70% of tax + interest

Who cannot file ITR-U?

• Updated return has already been filed.
• Filing of nil return or loss return.
• Want to increase the refund amount.
• Updated returns result in lower tax liability.
• Search or survey has been initiated under section 132, 133A, or 132A.
• Tax assessment/reassessment is pending or completed.
• No additional tax is due (adjusted with TDS/loss).

How to file updated returns? 

• Download the ITR-U form from the Income Tax Department website.
• Login to the e-filing portal and select “Update Return (ITR-U)”.
• Enter the required details including additional income and tax payable.
• Calculate and pay additional tax before submission.
• Submit the form and verify the return using Aadhaar OTP, Net Banking or DSC.

The post How to file updated income tax return after the budget, know the complete process here first appeared on Rightsofemployees.com.

That’s why people have to settle many financial tasks before 31st March. This includes work ranging from Income Tax Return to Investment. Therefore, before the end of the month of March, you should complete these four tasks related to finance as soon as possible.

PAN-Aadhaar Link

The last date to link PAN card with Aadhaar is 31 March 2023. After this date, such PAN cards will be deactivated, which will not be linked to Aadhaar. The Income Tax Department has clearly said that if someone does not link his PAN and Aadhaar by March 31, 2023, his PAN card will become inoperative.

Every time the date for linking PAN with Aadhaar was extended, but the Income Tax Department is not in the mood to extend the deadline this time. The Central Board of Direct Taxes (CBDT) has fixed a late fine of Rs 1000 for linking PAN with Aadhaar after June 30.

Updated ITR

The last date for filing updated income tax return for FY 2019-20 or Assessment Year 2020-21 is March 31, 2023. If any taxpayer feels that the discrepancy mentioned in the e-verification is correct, then he can send a reply to the Income Tax Department for the same. Along with this, taxpayers can also file updated returns.

Investment in savings scheme

The current financial year is about to end in a few days. So if you are a taxpayer, complete the work of investing in savings schemes to save tax. Under Section 80C of Income Tax, a rebate of up to Rs 1.50 lakh is available on investment. You can avail tax deduction by investing in Sukanya Samriddhi Yojana, Senior Citizen Saving Scheme, Public Provident Fund and National Pension Scheme. Apart from this, you can also invest in tax saving fixed deposit scheme.

On the other hand, if you have already invested in these schemes, then the last date for annual deposit is also March 31, 2023. In savings schemes, the amount has to be deposited once a year. Therefore, the fixed amount should be deposited before the end of the financial year.

LIC policy with high premium

If you want to avail tax deduction on LIC policy with high premium, then it has to be subscribed before 31st March. After March 31, 2023, there will be no exemption on this. According to the new income tax rules applicable from April 1, 2023, income from life insurance policies above the annual premium of Rs 5 lakh will be taxable. But, if you buy an insurance policy with an annual premium of more than Rs 5 lakh before March 31, 2023, it will not come under the new income tax rule.

The post PPF, NPS, SSY Accounts Alert! Do these 5 important works till March 31, otherwise you will be fined! first appeared on Rightsofemployees.com.