In order to correct any errors in their prior filings, taxpayers nationwide are being requested to file their latest Income Tax Return Form ITR-U for the Assessment Year 2021–22 (Financial Year 2020–21). Experts, cited by ET, caution that fees and fines for missing this deadline could reach 200% of the taxes avoided.
Understanding Form ITR-U
For taxpayers aiming to rectify any under- or misreported income from their initial filings, or from failing to file a return by the deadline, the ITR-U serves as an indispensable instrument. It provides individuals with the opportunity to address any discrepancies and ensure compliance with tax laws.
Deadline for Filing Form ITR-U
Following the conclusion of the applicable assessment year, taxpayers have 24 months to file an amended income tax return. The deadline for accepting ITR-U for the Financial Year 2020–21 (AY 2021–22) is 31 March 2024. This must be completed by the Taxpayers with the deadline in order to avoid penalty and legal repercussions.
Additional Tax Payment
Taxpayers may be required to pay more tax when filing an ITR-U; this additional tax usually consists of 50% of the total amount of tax and interest payable. The additional tax payable, however, drops to 25% if the return is filed after the deadline but within a year after the conclusion of the applicable assessment year. While offering some leeway for late files, this clause seeks to promote prompt compliance with tax laws.
Importance of Filing Form ITR-U
If a person has accidentally withheld or misreported income on their first files, they must file an amended income tax return (ITR-U). Through ITR-U, people can proactively correct errors and reduce the possibility of fines and legal repercussions. It encourages financial reporting openness and shows a dedication to following tax regulations.
Our specialists stress how crucial it is for taxpayers to promptly file their most recent Income Tax Return (ITR-U) for the Assessment Year 2021–2022, especially considering the approaching deadline. The possible fines and penalties, which might equal 200 % of the taxes evaded, are noted by ET and highlight how urgent it is for taxpayers to correct any errors in their earlier filings.
In order to ensure compliance with tax regulations and reduce legal risks, taxpayers must resolve underreported or misreported income using the ITR-U. As 31 March 2024, approaches for the filing of ITR-U for the Financial Year 2020–2021—a deadline that taxpayers must not miss, they risk financial penalties and legal ramifications.
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