Taxpayers Can File Only One Updated Return In An Assessment Year: Government

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Taxpayers can file only one updated return in an assessment year

New Delhi:

A taxpayer would be permitted to file only one updated return for an assessment year, chairman of the central board of direct taxes (CBDT), J B Mohapatra said on Wednesday.

Speaking at an industry event, Mr Mohapatra said the intent of this provision is to help people who have genuinely missed out on filing his or her returns.

Such taxpayers “can file only one updated return for one assessment year”, he said.

To correct any discrepancy or omissions, the budget 2022-23 has permitted taxpayers to update their income tax returns (ITRs) within two years of filing, subject to payment of taxes.

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 assessment year.

However, if a prosecution proceeding is initiated by issuing notice for a particular assessment year, 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.

Currently, if the income tax department finds out that some income has been missed out by the assessee, it goes through a lengthy process of adjudication, and the new proposal would repose trust in the taxpayer.

Author: desi123 is an online news portal that aims to provide the latest trendy news for Asians living in Asia and around the World.

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