Income Tax Alert: File Your ITR-U By March 31 Or Face Up To 200% Penalty – News18

Taxpayers are mandated to submit an up to date Income Tax Return (ITR-U) by the tip of March 2024 for the fiscal yr 2021 (Assessment Year 2021–22). ITR-U is a method of correcting errors in beforehand submitted ITRs, similar to revenue beneath or misreported.

Once the relevant evaluation yr has ended, the Income Tax Act means that you can revise your ITR beneath Section 139(8A). An individual could also be topic to fines of as much as 200% of the tax due in the event that they fail to right the errors and the taxing authority finds out.

Founder of Delhi-based CA agency Ravi Rajan & Co., S Ravi, defined to the Economic Times that with impact from A.Y. 2017–18, a brand new part 270A has been carried out that stipulates a penalty of both 50% or 200% of the tax owed if a person hides revenue and doesn’t disclose it.

However, the utmost penalty beneath Section 271 of the Income Tax Act, 1961 could be as much as 300% of the quantity payable until A.Y. 2016–17, S Ravi added.

When is the deadline for submitting an up to date return?

After the related evaluation yr ends, taxpayers have 24 months to file a revised return (topic to sure pointers). If taxpayers missed the deadline for FY20-21, they’ve till March 31 to file.

Who must file an ITR-U?

Taxpayers who both filed their ITR (on time, late or perhaps a revised return) or didn’t file their ITR for that evaluation yr can file their return doc along with an up to date return.

It needs to be famous that the ITR-U can’t be used to acquire a refund of tax paid.

Does submitting an ITR-U require paying extra taxes?

ITR-U can’t be submitted with out paying extra tax, relying on the situations.

The further tax shall equal 50% of the whole tax and curiosity due by an individual upon submitting the revised return.

However, if the up to date ITR-U is submitted after the deadline for submitting a revised or belated return has handed however earlier than the 12-month interval that ends with the tip of the related A.Y. has handed, 25% of the whole quantity of tax and due curiosity.

Who is ineligible to file an ITR-U?

• In case an up to date return has already been submitted.
• For submitting a loss or nil return.
• To get or enhance the quantity of the return.
• If submitting a revised return reduces your tax obligation.
• A search course of beneath Section 132 has been launched towards you.
• A survey is carried out per Section 133A.
• If belongings, information, or books are seized or demanded by the Income Tax authorities beneath part 132A.
• If an evaluation, reassessment, revision or re-computation is pending or has been accomplished.
• You can not file an up to date ITR if there isn’t a new tax outgo (that’s if the tax legal responsibility adjusts with TDS credit score or losses and also you don’t have any additional tax legal responsibility).