Individuals and taxpayers have the opportunity to file updated income tax returns, known as ITR-U or updated ITR.
This option is available to rectify any errors present in previously filed tax returns, such as discrepancies in income reporting.
ITR-U can also be utilized by those individuals who missed the original due date for filing their income tax returns.
It’s important to note that if the Income Tax Department detects any errors, penalties can amount to as much as 300% of the tax evasion.
Who Can File ITR-U or Updated ITR?
ITR-U or Updated ITR can be filed by individuals who have filed their Basic ITR by the due date, individuals who have filed their ITR late, or individuals who initially missed the filing deadline altogether.
When is the Deadline for Filing ITR-U or Updated ITR?
The deadline for filing ITR-U or Updated ITR is 24 months from the end of the Assessment Year (AY).
For instance, ITR-U for the current financial year 2023-24 (AY 2024-25) or updated ITR can be filed for the financial year 2020-21 (AY 2021-22) and financial year 2021-22 (AY 2022-23).
Penalties for ITR-U
Failure to report income can result in a penalty of 25% of the tax owed, plus interest on the unreported income.
This penalty must be paid within 12 months of the end of the assessment year. Additionally, if ITR-U is filed in the assessment year following the original filing, the penalty increases by 50%.
Where to File ITR-U
ITR-U can be submitted at eportal.incometax.gov.in.
However, it’s essential to note that ITR-U may not be applicable in certain cases, including filing Nil and Loss returns, claiming or increasing refunds, reducing tax liability from previously filed returns, and instances where ITR-U is not required.