Income tax is a charge levied by the central government on the earnings of an individual or business in a financial year.
Read More: I-T dept asks taxpayers to file updated ITRs for AY 2021-22 by March 31
Taxes are basically a source of revenue for the government, which is utilised for developing the infrastructure of the country, offering better healthcare facilities, education and much more. While filing the tax, it is crucial to fill in the correct and relevant details. Now, for those taxpayers who had filed their income tax returns under the e-verification, there is an important update from the Income Tax Department (ITD). The last date to file the updated ITR has also been declared.
The IT Department on Monday, March 4, shared that all those taxpayers whose cases have been marked under the e-verification scheme will have to file their Updated Income Tax Return or ITR-U. It is a form that permits taxpayers to correct errors or omissions like under-reporting or wrong reporting in their previously filed ITRs within 2 years from the end of the assessment year.
Taking to X, the IT Department shared, “As part of the e-Verification Scheme-2021, the Income Tax Department (ITD) is in the process of sending a communication to taxpayers pertaining to ‘mismatch’ between the information filed in the Income Tax Return (ITR) vis-à-vis information of specified financial transactions, as available with the Department, for ITRs filed for AY 2021-22 (FY 2020-21).” It further added that this information is being communicated to taxpayers through their email accounts that are registered with ITD.
Further, it urged the taxpayers to view their Annual Information Statement (AIS) through the e-filing portal and file updated ITR-U wherever necessary. This will ensure transparency and promote voluntary tax compliance. It is important to note that eligible non-filers can also file their ITR-U. The last date for filing ITR-U for Assessment Year 2021-22 (that is for Financial Year 2020-21) is March 31, 2024. In cases where ITR have not been filed for AY 2021-22, but the department has intel about high-value financial transactions, then they will be under scrutiny.
So, who can file ITR-U or Updated ITR? Well, ITR-U can be filed by any taxpayer who has made an error or removed certain income details in their original return of income, belated return or revised return.
Read More: Tax Deducted From Salary? How To Avoid Higher Income Tax Under New Or Old Tax Regime
Taxpayers can also file ITR-U when they did not file the return or missed the deadline, chose the wrong head of income, paid tax at the wrong rate, or tried to reduce tax credit.
