• Notification Date: 29-03-2024
• Notification No: N/A

2 Times Penalty to be charged if ITR-U not Filed within March 31

Taxpayers have a timeframe of 24 months from the end of the relevant assessment year to file ITR-U. For instance, for the Financial Year 2020-21 (Assessment Year 2021-22), the deadline to submit ITR-U is March 31, 2024. Filing the income tax returns is a critical aspect of financial responsibility for taxpayers. However, sometimes errors or omissions may occur in the initial filing, leading to under-reporting or misreporting of income. In such cases, taxpayers can rectify these mistakes by filing an updated income tax return, known as ITR-U. 

ITR-U, or updated income tax return, provides taxpayers with the opportunity to correct errors or discrepancies in their previously filed income tax returns. These errors may include under-reporting of income, misreporting of financial information, or failure to file a return by the due date.  

ITR-U Deadline Taxpayers have a timeframe of 24 months from the end of the relevant assessment year to file ITR-U. For instance, for the Financial Year 2020-21 (Assessment Year 2021-22), the deadline to submit ITR-U is March 31, 2024. It’s essential to adhere to this deadline to avoid penalties and legal consequences. Filing ITR-U may require taxpayers to pay additional taxes, depending on their individual circumstances. The additional tax amount typically equals 50% of the aggregate of tax and interest payable upon filing the updated return. 

However, if the return is filed after the due date but within 12 months from the end of the relevant assessment year, the additional tax payable reduces to 25% of the aggregate of tax and interest payable. 

Filing ITR-U is crucial for taxpayers who have inadvertently concealed or misreported income in their initial filings. Instead of risking penalties and legal ramifications, proactively rectifying errors through ITR-U can help taxpayers maintain compliance with tax laws and avoid financial liabilities.  

Hence, taxpayers must understand the significance of filing updated income tax returns (ITR-U) to rectify any errors or omissions in their initial filings. Adhering to deadlines and accurately reporting financial information can contribute to a hassle-free tax filing experience and ensure compliance with tax regulations.