The consequences of skipping Income Tax Return (ITR) filing can be dire, but there’s still a chance to dodge prosecution and hefty fines. Here’s what you need to know before the deadline hits.
Taxpayers are under the wire with a strict 24-month window from the end of the relevant assessment year to file ITR-U. For example, for the Financial Year 2020-21 (Assessment Year 2021-22), the final call to submit ITR-U is March 31, 2024.
Filing income tax returns is a fundamental part of financial responsibility. Yet, slip-ups happen, leading to underreporting or misreporting of income. Luckily, there’s a solution in the form of an updated income tax return, aka ITR-U.
ITR-U allows taxpayers to rectify errors or discrepancies in their initial filings. These could range from underreported income to missed deadlines.
Time is of the essence with ITR-U. Missing the deadline means facing penalties and legal repercussions.
Filing ITR-U might mean shelling out additional taxes, depending on individual circumstances. The amount could hit up to 50% of the total tax and interest due upon filing the updated return.
However, filing within 12 months from the end of the assessment year brings relief, reducing the additional tax to 25%.
For taxpayers who’ve made mistakes in their initial filings, filing ITR-U is a crucial step to avoid penalties and legal trouble. It’s a proactive approach to maintaining compliance and dodging financial liabilities.
In summary, understanding the importance of filing updated income tax returns (ITR-U) is key. Meeting deadlines and ensuring accurate reporting pave the way for a smooth tax filing experience while staying on the right side of tax laws.
