In Budget 2022, exemption has been given to update ITR for two years, but in addition to interest on outstanding tax, additional amount will have to be paid.
Income Tax Return: There is big news for those filing income tax returns. Taxpayers will be allowed to update their Income Tax Return (ITR) only once in an assessment year. Central Board of Direct Taxes (CBDT) Chairman J B Mohapatra gave this information on Wednesday. Addressing an event organized by the Confederation of Indian Industry (CII), Mohapatra said that the purpose of this provision is to give an opportunity to those people who have not been able to do so due to any valid reason. “Such taxpayers will be able to update their income tax return only once in an assessment year,” Mohapatra said.
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This extra charge will be levied on the outstanding tax
In Budget 2022-23, taxpayers have been allowed to update ITR within two years from the date of filing, which has made some mistake or omitted some details in the return. Any mistake can be rectified within two years. If the updated ITR is filed within 12 months, an additional 25% will have to be paid on the outstanding tax and interest. If it is filed after 12 months, the payment will increase to 50 percent. But it has to be filed within 24 months of the relevant assessment year.
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Returns will become invalid for non-payment of additional taxes
However, for any assessment year, if prosecution proceedings have been initiated by issuing a notice, the taxpayer will not get the benefit of this facility. Also, if a taxpayer files an updated return and does not pay additional taxes, the return will become invalid.
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