Finance Minister Nirmala Sitharaman has not announced any changes to income tax rates when presenting the Union Budget for 2022. However, the Finance Minister has provided some relief to people who file their tax returns. Adjusted Income Tax (ITR). FM announced that the revised tax filing window will remain open for two years from the year of bonding in the event of a lower tax return.
"To provide an opportunity to correct such errors, I am proposing a new provision allowing taxpayers to file an updated return on payment of the additional tax. This updated return may be filed within two years after the end of the applicable assessment year," Sittraman said in the budget speech.
How much do you have to pay for filing an updated income tax return (ITR)?
"An amount equal to 25 percent or 50 percent is proposed to be paid as additional tax on taxes and interest payable on additional furnished income," the budget memo said.
By declaring this additional income, the taxpayer will be required to pay additional tax. “This offer is not cheap. Those who wish to clean must pay an additional amount expressed as a percentage of taxes and interest payable at the time of filing the ITR if the updated ITR is filed within 12 months (25%) or after 12 months but within 24 months ( fifty%). ). ), said tax expert Balwant Jane.
He added that the introduction of the Annual Report Information System (AIS) instilled a sense of fear in the minds of taxpayers who evaded paying taxes altogether. “Given that the government does not have the bandwidth required to track and pursue taxpayers who have not fully declared their income or have not filed their ITR where the fiscal impact is not very significant, I came up with a new idea to offer to taxpayers the opportunity to clear on their own but at a certain additional cost By uploading an updated ITR by paying the tax within two years of the end of the assessment year before the income tax departments find out."
While all taxpayers have a way to review their tax returns within a limited period of five months from the due date to file tax returns, an updated return can now be filed within two years from the due date. of the corresponding evaluation year. An updated return cannot be filed to report an additional loss or decrease in the tax liability. The tax must be paid prior to filing the updated tax return and evidence of this limit must be attached when filing the updated tax return.
Pursuant to the Budget Memorandum, a new provision is introduced in Section 139 of the I-T Act to file an updated income statement by any person, whether or not they have filed a return for the applicable assessment year.
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