Revised Income Tax Return: For the fiscal years 2019–20 and 2020–21, the Income Tax Department has enabled taxpayers to submit updated returns. It is essential to file your income tax return on time if you are subject to taxes. It keeps you out of a lot of trouble. There is excellent news for you if you haven’t submitted your returns for the fiscal years 2019–20 and 2020–21 for any reason. Such taxpayers may resubmit the return. The new return, known as ITR-U, has been announced by the Income Tax Department (CBDT).
How Does an Updated Return (ITR-U) Work?
The amended returns under section 139(8A) of the Income Tax Act were made public by Finance Minister Nirmala Sitharaman in the Finance Act 2022. This allows for the filing of an amended return (ITR-U) for any financial year within the following 24 months. It is now in effect as of the 2019–20 fiscal year. A taxpayer may also submit an ITR-U if he has not yet submitted an initial return, a belated return, or an amended return.
Reason for updated return must be provided as well.
A taxpayer must explain why he is filing an updated return if he wants to do so. These reasons fall into eight categories. Due to these factors, choices including not submitting tax returns and providing inaccurate information about income have been made available. In addition, the taxpayer must decide which of the many income tax return types is best for him.
Up to 50% of the additional tax is going to be paid.
The fine must be paid when the revised return is filed. A 25% extra tax will be charged if ITR-U is lodged within 12 months of the assessment year’s end. A 50% additional tax will be assessed if the amended return is filed after 12 months but before 24 months have passed. You cannot file this return unless you owe certain additional taxes.