FM proposes permitting taxpayers to file an updated ITR on payment of additional tax
Finance Minister Nirmala Sitharaman while presenting the Budget 2022 has proposed a new provision permitting 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.
“New system of filing revised ITR has been introduced, allowing a window of 2 years, if additional tax is paid. This will help taxpayers voluntary declare any missed income and reduce litigation,” says Shailesh Kumar, Partner
Section 139 of the Act is related to the provisions for filing of Income Tax Return by taxpayers and the last date to file ITR is 31st day of July of the assessment year, unless extended by the government.
Belated ITR: Alternatively, sub-section (4) of section 139 of the Act facilitates filing of a belated return after the expiry of due date, if such return is furnished before 3 months prior to the end of the relevant assessment year or before the completion of assessment, whichever is earlier.
Revised ITR: Similarly, sub-section (5) of section 139 of the Act provides the taxpayer an opportunity to revise the return filed under sub-section (1) or sub-section (4) in case of any omission or wrong statement, after due date, which is to be filed 3 months before the end of the assessment year or before the completion of assessment, whichever is earlier.