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    How to report missed income in ITR now

    How to report missed income in ITR now

    How to report missed income in ITR now
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    By Anshul   IST (Published)

    Mini

    Section 139(8A) of income tax, which came into effect from April 1, 2022, allows taxpayers to to file an updated return.

    The current income tax laws allow an assessee to correct an error made while filing a return. So, if you have missed reporting certain income in your Income Tax Return (ITR) for financial year 2021-22, you can report it in the next two years by filing an updated return.
    Section 139(8A) of income tax, which came into effect from April 1, 2022, allows taxpayers to to file an updated return.
    "The Finance Act, 2022 has introduced the concept of updated return to allow a longer duration for an assessee to file the return of income. An updated return can be filed within 24 months (2 years) from the end of the relevant assessment year (subject to certain conditions). An updated return can be filed even after the expiry of time limits specified for the filing of a belated return or revised return of income," said Naveen Wadhwa, Deputy General Manager at Taxmann.
    So, is there any penalty while filing updated returns?
    A penalty or fee is not levied if you wish to furnish an updated return. However, you will be required to pay an additional tax in accordance with Section 140B of the income tax act. The additional tax is equal to 25 percent of the aggregate of tax and interest payable where such return is furnished after the expiry of the due date of filing of belated or revised return but before completion of a period of 12 months from the end of the relevant assessment year.
    Where the updated return is furnished after the expiry of 12 months from the end of the relevant assessment year but before completion of the period of 24 months from the end of the relevant assessment year, the additional tax payable is 50 percent of the aggregate of tax and interest payable.
    Further, a fee under Section 234F is charged if such person didn’t furnish a return of income for that assessment year for which he is furnishing an updated return.
    Is there any specific form for filing updated return?
    Yes, the Income Tax Department has issued a separate form, ITR-U, for filing an updated return.
    So, you will be required to furnish an updated return in those ITR forms which were notified for the respective assessment year for which an updated return is to be furnished along with ITR-U.
    Can all taxpayers file updated return?
    All taxpayers are eligible to file an updated return. However, such a return cannot be filed in the following circumstances:
    (a) If an updated return is a return of a loss;
    (b) In case an updated return results in lower tax liability;
    (c) In case an updated return results in or increasing the refund;
    (d) In case of a search initiated against the assessee;
    (e) Where books of account or assets etc. are requisitioned in case of the assessee;
    (f) In case a survey is conducted against the assessee;
    (g) Where documents or assets are seized or requisitioned in case of any other person belonging to the assessee;
    (h) In case an updated return has already been filed;
    (i) In case assessment is pending or completed;
    (j) In case of a person or class of persons as notified by the CBDT
    When someone files their return but later realizes that they have missed some information or not disclosed something completely, they can file a revised return. On the other hand, updated return can be used only to disclose an extra income that taxpayers may have missed reporting earlier.
    Meanwhile, taxpayers who missed filing their ITRs by the deadline can still file belated returns.
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