HomeWhat's TrendingMissed Deductions? Tamil Nadu Allows Updated Tax Returns for Past 2 Years

Missed Deductions? Tamil Nadu Allows Updated Tax Returns for Past 2 Years

The Income Tax Department of Tamil Nadu and Puducherry recently announced a significant opportunity for taxpayers. They can now make amendments to their tax returns for the past two financial years. This means if you made any errors or omissions in your tax filings for the years 2021-22, 2022-23, and 2023-24, you have until March 31 to correct them.

This move comes after the tax department noticed some concerning trends while examining cases where taxpayers were due for high refunds. It was found that certain individuals were claiming abnormally large deductions under various Sections such as 80G (for donations to funds and charitable institutions), 80E (for interest on education loans), and 80GGC (for contributions to political parties).

‘In certain cases, taxpayers were claiming deductions that amounted to more than 80% of their total income, which seemed highly unlikely. Additionally, many of these individuals couldn’t provide sufficient evidence to validate the deductions they were claiming,’ explained a spokesperson from the department.

To address this issue and allow taxpayers to rectify their filings, the Income Tax Department has introduced a provision. Even if the due dates for filing regular or belated returns have passed, individuals can still submit updated returns as per Section 139(8A) of the Income-tax Act,1961.

This extension offers a lifeline to those who may have inadvertently made mistakes on their tax returns. It’s a chance to ensure accuracy and compliance with tax regulations, avoiding potential penalties or audits in the future.

So, if you’re a taxpayer in Tamil Nadu or Puducherry and you’ve realized you made a mistake on your tax returns for the past two years, don’t panic. Take advantage of this opportunity provided by the Income Tax Department to set things right before the March 31 deadline.

Remember, it’s essential to ensure your tax filings are accurate and supported by legitimate evidence. If you’re unsure about how to proceed or need assistance navigating the process, consider seeking professional advice from tax experts or legal professionals.

‘This is a taxpayer-friendly move,’ says a Vakilsearch tax law expert. ‘If you suspect errors or missed deductions, file an updated return before March 31st. But ensure you have proper documentation to avoid scrutiny. Don’t miss this chance to rectify income tax return errors for the past two years!  For assistance with filing updated returns or any tax-related queries, contact Vakilsearch.

Akash G Varadaraj