Taxpayers have a timeframe of 24 months from the end of the relevant assessment year to file ITR-U. For instance, for the Financial Year 2020-21 ( Assessment Year 2021-22 ), the deadline to submit ITR-U is March 31, 2024.
Filing the income tax returns is a critical aspect of financial responsibility for taxpayers. However, sometimes errors or omissions may occur in the initial filing, leading to under-reporting or misreporting of income. In such cases, taxpayers can rectify these mistakes by filing an updated income tax return, known as ITR-U.
ITR-U, or updated income tax return, provides taxpayers with the opportunity to correct errors or discrepancies in their previously filed income tax returns. These errors may include under-reporting of income, misreporting of financial information, or failure to file a return by the due date.
ITR-U Deadline
Taxpayers have a timeframe of 24 months from the end of the relevant assessment year to file ITR-U. For instance, for the Financial Year 2020-21 ( Assessment Year 2021-22 ), the deadline to submit ITR-U is March 31, 2024. It’s essential to adhere to this deadline to avoid penalties and legal consequences.
Filing ITR-U may require taxpayers to pay additional taxes, depending on their individual circumstances. The additional tax amount typically equals 50% of the aggregate of tax and interest payable upon filing the updated return.
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However, if the return is filed after the due date but within 12 months from the end of the relevant assessment year, the additional tax payable reduces to 25% of the aggregate of tax and interest payable.
Filing ITR-U is crucial for taxpayers who have inadvertently concealed or misreported income in their initial filings. Instead of risking penalties and legal ramifications, proactively rectifying errors through ITR-U can help taxpayers maintain compliance with tax laws and avoid financial liabilities.
In conclusion, taxpayers must understand the significance of filing updated income tax returns ( ITR-U ) to rectify any errors or omissions in their initial filings. Adhering to deadlines and accurately reporting financial information can contribute to a hassle-free tax filing experience and ensure compliance with tax regulations.
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