The Income Tax Department had extended the deadline for filing ITR till January 15, 2025, but have you still missed this deadline? If you have missed this deadline, you do not need to worry. You may still get a chance to file an ‘updated return’.
This facility is available till 31 March 2027 for the financial year 2023-24 (assessment year 2024-25). However, there are certain conditions and penalties associated with filing returns under this facility.
‘Updated Returns’ is a new feature, which was introduced in the Budget 2022. Under this, taxpayers get an opportunity to correct the mistakes made in their original, belated or revised returns or add the missing information. This facility is given under Section 139(8A) of the Income Tax Act.
This means that if you have not filed your return by July 31, 2024 or you want to file a revised return, you can file the return till now. If you are not able to file your return by the extended deadline of January 15, 2025, you still have the option to file your return by March 31, 2027.
At the same time, if you had not filed the return for the financial year 2021-22 (assessment year 2022-23) or there was any mistake in it, then you can file the updated return till 31 March 2025.
To file ‘updated return’ you have to fill a form called ITR-U. In this form, you have to explain why you have filed an updated return, such as missing the deadline, incorrect selection of income, or filling incorrect data in the original return, etc.
Although this option of filing ‘updated return’ provides relief to taxpayers, there are certain conditions and penalties attached to it.
Penalty: On filing ‘updated return’, you will have to pay a penalty of 25-50 per cent in addition to your due tax and interest.
If you file the return within 12 months of the end of the relevant assessment year, the penalty will be 25%. If you file the return within 24 months, the penalty will increase to 50%.
restrictions: You cannot use the ‘Updated Return’ to reduce your tax liability or conceal any income. For example, if you try to set-off your loss against a profit, this will not be allowed.
Additionally, if your return is already under scrutiny or you have received a notice, you cannot avail this option.
‘Updated Returns’ is a good opportunity for taxpayers, especially those who did not file returns on time. By filing this you can avoid legal problems and penalties. However, before availing this facility, you should get complete information about its terms and penalties.
So, if you have missed the deadline, take advantage of this option to file your return as soon as possible.