Income Tax Returns: Due Date For Filing Updated ITR Is Nearing; Which Taxpayers Need To File?

The due date to file an updated Income Tax Return (ITR-U) for 2021-22 is declared as 31st March 2024. The Income Tax Department of India has tweeted to alert the taxpayers regarding the approaching date. The alert is for the taxpayers who have not filed original returns or revised returns and for those who need to update or make changes in their previously filed ITR.

The updated return can be filled by an individual even after 24 months of the end of the assessment year. As per the Income Tax Section 139(8A), Section 140B(3), and Rule 12AC, about 25% additional income tax has to be paid if the updated ITR is filed for the previous year and 50% additional tax if the updated income tax is filed for the previous-to-previous financial year. In the financial year 2023-24, the taxpayer can file an updated income tax return for FY 2021-22 and FY 2022-23.

To encourage voluntary tax compliance, the Income Tax Department has initiated the updated income tax return, through which taxpayers can file their returns themselves with more time.

Below is the list of Taxpayers who need to file an updated ITR for FY 2023-24.

a)Regardless of the taxpayer filing the return for the first time, an updated return can be filed if the taxpayer didn't pay for the previous year or might have selected the incorrect Income Head/Section.

b)If the tax is paid for the wrong date or the individual forgets to attach income earnings through interest, stock dividends, sale of property or shares, bullion sale or any other valuable articles for the previous two years, they need to file an updated ITR.

c)When reduction is carried forward loss or an unabsorbed depreciation from the previous year to ensure the correct loss amount is carried forward to offset future income.

d)When Minimum Alternate Tax (MAT) is credited or Alternative Minimum Tax (AMT) is credited, then the individual needs to file the updated ITR.

There would be interest and fee applicable for furnishing the updated return when an individual has not filed income tax for the relevant assessment year, along with an additional income tax to be paid before filing an ITR.

The taxpayer will be required to fill the ITR forms like Schedule Part A 139(8A) and Schedule Part B ATI, entering appropriate details such as Name, Address, PAN Number, Aadhaar Number, time of filing, reasons for filing the updated ITR, and also relief under Section 89 which was not claimed in the earlier return, with selecting the affected assessment years.