In the Union Budget 2022, the Central Government has introduced the new scheme which permits all tax-payers to file an “Updated Return” within 24 months from the end of the relevant assessment year.
The new provision allows the tax-payers to update or file their Income Tax returns on payment of additional tax. It is issued in the object of providing an opportunity for voluntary compliance by tax-payers who have missed filing their Income Tax return for the FY 2019-20 and 2020-21.
The tax-payers who have NOT filed their Income Tax return earlier, can now file an updated return in FORM ITR-U for the Financial Year 2019-20 (Assessment Year 2020-21) and for Financial Year 2020-21 (Assessment Year 2021-22) on or before 31.3.2023
The tax-payer has to pay an additional 50 percent of aggregate of tax payable and interest thereon due for the FY 2019-20 and additional 25 percent of aggregate of tax payable and interest thereon due for the FY 2020-21.
The tax-payer cannot file an updated return where there is no additional outflow of tax, that is, NIL return cannot be filed, return with refund of tax cannot be filed.
For detailed information reference may be made to the provisions of the Income Tax Act, 1961, the Income-Tax Rules, 1962, relevant circulars and/or notifications.
—N.D. Shreenivaas, Bhavani Associates, Mysuru