Error in Filling Income Tax returns? | New ITR-U allows it to amend within 2 years | MAG

 

There are many things to remember while filing income tax returns, and even the slightest mistake can result in penalties. 

In Budget 2022, the IT department introduced the ITR-U form for filing updated Income tax returns. This form permits taxpayers to make changes to their ITRs within two years from the end of the applicable assessment year, assisting taxpayers who made mistakes or omissions.

Who can File ITR-U Form?

👉 Not filed previous ITR

👉 Incorrectly Reported Earnings

👉 Unsuitable choice for head of income

👉 Lessening the loss that was carried forward

👉 Lower unabsorbed depreciation

👉 Tax credit reduction under sections 115JB or 115JC

👉 Incorrect tax rate, others

What's the Catch?

This form not only bring the best use of enormous data by IT department thus will leads towards additional revenue, but also it will make it simpler for the taxpayer to comply in a situation devoid of law suits.

If the amended ITR is not filed within 12 months, an additional 25% of the tax and interest due must be paid. If the application is submitted between 12 and 24 months after the application assessment year has ended, the rate rises to 50%. If a taxpayer files a revised return but doesn't pay the extra taxes, the return is considered invalid.

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