File updated returns for 2021-2022 by March 31, 2024, to avoid penalties. Know what is updated return and filing details
The Income Tax Department issued a crucial reminder on November 23, 2023, alerting taxpayers to submit Updated Income Tax Returns (ITR) pertaining to the Assessment Year 2021-2022 as soon as possible. The last date to submit the updated return for Assessment Year 2021-2022 is March 31, 2024.
Income Tax Department took to X saying, “Kind Attention Taxpayers! Last date for filing your Updated Income Tax Return for Assessment Year 2021-2022 is March 31, 2024. Don’t delay, file today!”
Who Should File an Updated ITR & How Much Tax?
This reminder for income tax only applies to those individuals who have not yet filed their original or revised tax returns. Additionally, it applies to those seeking to rectify errors in their original returns, when is income not declared correctly, the X post read. The mistakes include:
Incorrect head of income taxis selected or tax paid at wrong rate
Reduction in carried forward loss or unabsorbed depreciation is required
Reduction of MAT (Minimum Alternate Tax)/ AMT (Alternate Minimum Tax) credit is required
MAT does not apply to individuals and individuals are excluded from AMT unless their annual income cross Rs 20 lakh.
As you file updated returns, the tax on the updated return shall also be paid along with interest, fee, and additional income tax.
Till March 31, 2024, if tax payers, file updated returns for the Assessment Year 2021-2022, they should be prepared to pay an additional income tax of 50 per cent of their aggregate tax along with interest. If filing, for the subsequent year (2022-2023), the additional income tax required is 25 per cent.
Understanding Updated Returns
Taxpayers must disclose their income details to the Income Tax Department via a form called 'return of income'. Filing a return of income becomes mandatory if an individual's total income exceeds the exemption limit of Rs 3 lakh under the new tax regime.
Then they can submit revised returns, which allows taxpayers to rectify any errors or omissions in their previously filed returns. A return can be revised at any time 3 months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
After a revised return, you have the option of filing an updated return. It can also be filed if you have not filed original or revised return, the income tax website says. Updated return should be filed within 24 months of end of assessment year. But you can't file it, if it is return of loss, it reduces tax owed, or increases refund.
If you haven't filed the original return, the tax payable should be paid with interest, and late fees when you file the updated return. Interest for any default or delay in payment of advance tax should also be added. If you filed original return, then pay tax on the updated return along with interest for any default or delay in payment of advance tax minus the amount of interest paid in an earlier return.
The updated return shall be accompanied by the proof of tax payment, i.e., normal tax (if any), additional tax, interest and fee. Otherwise, it will be treated as a defective return.