One-time Opportunity to submit ITR for FY 2019-20 & FY 2020-21

Discover the one-time opportunity to submit your Income Tax Return (ITR) for FY 2019-20 & FY 2020-21 now. Learn about the ITR-U form and updated deadlines.

Taxpayers who missed the deadlines to file their ITR for FY 2019-20 and FY 2020-21 can do so now.

Do you want to know how??

Then read the entire article.

In the Union Budget 2022, the government introduced the ITR U form for updating income tax returns. The ITR-U form is a rescue for those who have not filed their ITR or made inaccurate and false entries while filing their income tax return.

the income tax department has notified Form ITR-U for filing the ‘Updated’ income tax return available in Section 139(8A) for any person who has furnished/not furnished ITR.

What will be due date to file an Updated ITR? 

1. FY 2019-20 (AY 2020-21): An Updated return needs to be filed on or before 31/03/2023.

2. FY 2020-21 (AY 2021-22): An Updated return can be filed on or before 31/03/2024.

So, taxpayers filing returns for: 

• FY 2019-20 will need to pay the tax due and interest along with an additional 50 per cent of such tax and interest.
• FY 2020-21 will need to pay the tax due and interest along with an additional 25 per cent of the tax and interest.

In ITR-U, the taxpayer needs to specify only the amount of additional income, under the prescribed income heads, on which tax is required to be paid. No detailed income break-up must be submitted, as in the case of filing regular ITR form.

Taxpayer must specify any 7 reasons for filing return in ITR-U from below:

• Return previously not filed;
• Income not reported correctly;
• Wrong head of income;
• Incorrect rate of tax;
• Reduction of carried forward losses or unabsorbed depreciation;
• Reduction of Minimum Alternate Tax;

Taxpayers cannot file updated return in cases of following:

• No additional tax outgo;
• Lowers the tax amount;
• refund or increase in the refund amount;
• Search or survey or prosecution proceedings are initiated;
• Assessment/reassessment/revision/re-computation is pending.

The Tax Department is biased as it allows filing of ITRs of past years only in case of Tax liability & not in case of refund or filing for compliance, which many taxpayers require as income proof, etc.

You can only file if there is any tax payable!

I hope you know how to read between the lines…😉