• Notification Date: 10.02.2022
  • Notification No: N/A

Taxpayers are allowed to Update ITRs Once in an Assessment Year

According to the statement of a government official on Wednesday, a taxpayer is entitled to file the Income Tax Returns only once in an assessment year. CBDT Chairman J B Mohapatra has stated that the new provision has been introduced with the purpose of helping those individuals who have failed to file their ITR files within the due time for genuine reasons. Mohapatra added that these taxpayers are allowed to submit one updated ITR file in a year. Budget 2022-23 has allowed the taxpayers to update their ITRs within a couple of years after filing the same. This would help in rectifying the discrepancies and disputes in the files.

If the updated ITR file is submitted within 12 months, an additional 25% of interest and due tax will be applicable. If the file is submitted after 12 months, but within the 24-months deadline period, an additional 50% of interest will be charged against the taxpayer. The taxpayers cannot enjoy the updated return file benefits if the prosecution issues a notice period for filing the return files in an Assessment Year. If the taxpayers do not pay the additional tax on the late filing of the ITRs, then their files would be considered invalid.

If the assessee misses out on some income of the taxpayer, a lengthy process is followed by the officials of the Income-tax department for adjudication and the trust is reposed on the taxpayer in that case.