Income Tax News: Attention Taxpayers! Last Date Alert for ITR Submission, Heavy Penalty for Non-Compliance – Check

Income Tax News: The Income Tax Department issued a crucial announcement just a day before the end of the current financial year. In a tweet, the department urged all taxpayers to file their updated Income Tax Returns (ITR) promptly. Here’s what you need to know about this important update.

Last Date and Eligible Years for Updated ITR

The deadline to file updated ITR for the assessment year 2021-22 is 31st March 2024. Additionally, taxpayers have the opportunity to file updated ITR for assessment years 2022-23 and 2023-24. By doing so, taxpayers can avoid potential higher tax liabilities in the future.

Introduction of Updated Returns

Introduced in the Budget 2022 under section 139(8), updated returns offer taxpayers the chance to rectify any discrepancies or updates in their previously filed returns within a specified timeframe. This provision aims to provide taxpayers with the opportunity to ensure accurate reporting of their income and tax liabilities.

Conditions for Filing Updated Returns

While the option of filing updated returns provides flexibility to taxpayers, there are certain conditions to be aware of:

1. Tax Liability Consideration: If the tax liability in the updated return is lower than that of the original return, filing an updated return is not permitted.
2. Refund Limitations: Similarly, if the refund claimed in the updated return exceeds that of the original return, taxpayers cannot file it.
3. Original Return Filing: Taxpayers who have not filed the original return and wish to file an updated return solely for claiming a tax refund are not eligible to do so.
4. One-Time Submission: Once an updated return has been filed for a particular assessment year, filing it again for the same year is not allowed.
5. Legal Proceedings: Taxpayers under investigation, survey, or with confiscated assets cannot file updated returns until the proceedings are resolved.

How to File Updated Returns

Taxpayers opting to file updated returns must select the ITR-U form on the tax filing portal. They should provide details of any refund claims, update additional income, and verify the return after completion.