Mar 12, 2024 03:00 PM IST
Updated ITR: The updated return can be filed within 24 months from the end of the relevant assessment year. Details here
The deadline for submitting an updated income tax return (ITR) for the financial year 2020-21 is on March 31. The provision allows taxpayers who missed filing their return for the said financial year or failed to report any income to file an updated ITR. The updated return can be filed within 24 months from the end of the relevant assessment year as per Finance ministry. Therefore, if taxpayers have missed filing ITR for FY2020-21, they can do so till March 31.
Read more: Advance tax liability: You need to pay advance income tax by this date to avoid penalties
Is there a penalty or fee? There is no financial imposition on individuals wishing to furnish an updated return but they have to pay an additional tax as per Section 140B of the Income Tax Act.
Hindustan Times – your fastest source for breaking news! Read now.
When are additional taxes applicable? If the ITR-U is filed within 12 months of the end of the assessment year, a 25% additional tax on the tax dues is applicable. If it is filed within 24 months, the additional tax increases to 50%.
Read more: Income tax refunds: Taxpayers to get pending refunds for FY2020-21 by April 30. Check your email
How to file an updated return? To file an updated return, taxpayers have to use ITR forms notified for the respective assessment year. This has to be done along with the newly-introduced form ITR-U.
How to calculate tax payable? Computation of tax payable for an updated return includes total income tax liability, tax payable, interest, late filing fees, and additional tax. Then by subtracting TDS/TCS/advance tax/tax relief from the total income tax liability, you can calculate net tax liability.
Read more: Delhi woman gets 6 months jail for failing to file Income Tax Returns on ₹2 crore income
What if you fail to file ITR? In this case you will not be able to carry forward losses of the current assessment year and could face penalties ranging from a minimum of 50% to a maximum of 200% of the assessed tax. Individuals may also be subject to prosecution.
Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it’s all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
- ABOUT THE AUTHOR
Follow the latest breaking news and developments from India and around the world with Hindustan Times’ newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we’ve got you covered.
