Filing of RTI: can taxpayers correct the tax return filed in previous years?

RTI deposit: The due date for filing the Unaudited Income Tax Return (ITR) has passed and those who have not filed their ITR by the due date indicated, they must file their return before the last filing date of the ITR, i.e. December 31, 2022. When filing this year’s ITR, some taxpayers may find financial information that should have been part of their previous ITRs. For these taxpayers, the central government has introduced the Income Tax Return-Update (ITR-U), which allows a taxpayer to comply with their tax responsibilities without having to worry about the law. Finance Minister Nirmala Sitharaman made an announcement in this regard during the presentation of the Union Budget in February 2022.

Speaking on ITR-U, Aarti Raote, Partner at Deloitte India, said: “ITR-U is the tax return form in which taxpayers can file tax returns for tax year two. years before the current tax year, i.e. the taxpayer can file an update return for AY:2020-21 in fiscal year:2022-23 to propose to impose a additional income Thus, an updated tax return gives the taxpayer a chance to tell the truth to the authorities if he missed filing a tax return in the previous year or if you failed to report certain income. An additional tax of 25% would have to be paid if the declaration is filed within one year and is increased to 50%.

“You can file an ITR-U for the 2019-20 financial year before March 31, 2023 and so on for subsequent assessment years. Only one ITR-U can be filed for each assessment year. The government gives the ability by ITR-U to voluntarily disclose any unrecognized and nettized income after paying an additional tax of 25% / 50% of the amount of income missing to report.According to reports, taxpayers have started using the installation and approximately 1 lakh ITR-U have been filed to date,” said Archit Gupta, Founder and CEO of Clear.

During a speech on ITR-U, CBDT Chairman Nitin Gupta told PTI that the scheme was put in place by the Union government for the benefit of taxpayers so that they can comply with their tax responsibilities without having to worry about the law.

“We have around 1 lakh of returns… (under ITR-U). The taxpayer may have paid additional tax or it may be a new filer. Around So far, tax collection worth 28 crore has been done under this scheme,” Nitin Gupta of CBDT said, adding, “This is a provision for taxpayers to come forward and pay taxes rather than face the consequences of a penalty or other legal action under income tax law.”

Taxpayers filing Form ITR-U, which can be filed within 2 years of the end of the relevant tax year, will be required to give reasons for the income update – previously unfiled return or unreported income correctly or wrongly selected revenue leaders or deferred loss reduction.

“Taxpayers have started using the facility and about 1 lakh ITR-U have been deposited so far. The Income Tax Department has collected about 28 crore in taxes thanks to updated declarations,” said Archit Gupta of Clear.

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