The Central Board of Direct Taxes (CBDT) has notified forms for updated returns for those taxpayers who missed to report correct particulars of Income for previous two assessment years.
Accordingly, a taxpayer who did not file income tax return in the past or missed to report correct income can now rectify the same by filing updated returns (ITR-U) by paying additional charge for the assessment years (AY) 2020-21 and 2021-22.
While the ITR-U allows the taxpayers to be compliant by rectifying mistakes, it does not allow taxpayers to file for refund of taxes or reduction of total income. Also taxpayers are required to specify reasons for now filing the return, which is mentioned by the ITR U including previously not filed, income not reported correctly, wrong heads of income chosen, wrong rate of tax, reduction of carried forward losses or unabsorbed depreciation, reduction of minimum alternate tax and others. https://manthanexperts.com/taxpayers-can-update-income-tax-returns-only-once-cbdt/
The Budget 2022-23 has allowed taxpayers to update their ITRs within two years of filing, subject to payment of taxes, a move aimed at helping correct any discrepancy or omissions and reduce litigation. https://manthanexperts.com/key-highlights-of-union-budget-2022-23/