Finance Minister has proposed a new provision in Budget 2022-23, to correct any discrepancy or omissions it permits taxpayers to file an updated return on payment of additional tax. This updated return can be filed within two years from the end of the relevant assessment year (AY), subject to payment of taxes.
However, in this regard, CBDT Chairman J B Mohapatra has said at a CII event that a taxpayer would be permitted to file only one updated return for an AY. He added that the intent of this provision is to help people who have genuinely missed out on filing his/her returns, such taxpayers “can file only one updated return for one AY”, as per a PTI report.
Further, an additional 25 per cent on the due tax and interest would have to be paid if the updated ITR is filed within 12 months, while the rate will go up to 50 per cent if it is filed after 12 months, but before 24 months from end of relevant AY.
While, if a prosecution proceeding is initiated by issuing notice for a particular AY, taxpayers cannot avail updated return benefit in that particular year. Also, if a taxpayer files an updated return and do not pay the additional taxes then the return would be tendered invalid.
Knowledge Source :
Around 6.2 Crore Income Tax Returns and 21 Lakh Tax Audit Reports Filed till 10th Feb, 2022.