Big opportunity to rectify the mistake in Income Tax return file, the government released the updated ITR form

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ITR

Highlights

  • Taxpayers filing ITR-U have to give reasons for updating income
  • The purpose of this step is to give an opportunity to rectify the mistake or missing information in the ITR.
  • In this, there will be no need to provide details of income in different heads like in regular ITR form

Income Tax The department has notified a new form for filing updated Income Tax Return (ITR). In this, the taxpayer has to tell the exact reason for filing it along with the amount being presented for tax. The new form (RTR-U) will be available to taxpayers for filing updated income tax returns for the financial years 2019-20 and 2020-21. Taxpayers filing ITR-U will have to give reasons for updating the income. They will have to give reasons as to why the return was not filed earlier, or why the correct income information was not given.

The announcement was made in the general budget

This form can be filed within two years from the end of the relevant assessment year. The Union Budget 2022-23 has allowed taxpayers to ‘update’ ITR within two years of filing it. However, before this permission, the payment of taxes would be necessary. The purpose of this step is to give an opportunity to rectify the mistake or missing information in the ITR. A taxpayer will be allowed to file updated statement only once in each assessment year. Shailesh Kumar, Partner, Nangia & Co. LLP said that the things have been kept ‘accurate’ in this form to facilitate easy filling of relevant information by the taxpayer. Apart from this, care has also been taken that only the details of the income which is being presented for tax needs to be given, Kumar said. In this, there will be no need to provide details of income in separate heads like in the regular ITR form.

Dues tax and interest have to be paid

Taxpayers who wish to file this form for 2019-20 will have to pay an additional 50 per cent of such tax and interest along with outstanding tax and interest, said Sandeep Sehgal, global partner-tax, AKM, a tax and consultancy firm. Will happen. At the same time, taxpayers who want to file this form for 2020-21 will have to pay an additional amount of 25 percent of the outstanding tax and interest.

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