The dawn of a new financial year on April 1, 2024, also brings a host of deadlines to our doorstep. Of these, filing an updated ITR (Income Tax Return) is a critical task that taxpayers have just one day left to complete. Through a social media announcement on Twitter (now X), the Income Tax Department has issued a stern reminder: 'Don't delay, file today.'
Income Tax Department Sounds the Alarm
The Income Tax Department has chosen today, March 31, the final day of the fiscal year 2023-24, to sound the alarm through a post. It advises taxpayers not to miss the opportunity to file their Updated ITR. 'Attention all taxpayers! The last date to file your Updated ITR for Assessment Year 2021-22 is March 31, 2024. Don't let this chance slip away,' reads the shared post from the department.
The ultimate date to submit your Updated ITR is March 31, 2024. Taking advantage of this, taxpayers can revise their return dating back two years from the relevant assessment year. In other words, the March 31 deadline pertains to the filing of updated income tax returns for the fiscal year 2020-21 or assessment year 2021-22.
Urgent Tasks for Taxpayers
The central government initiated the facility to file Updated ITR during the 2022 budget, starting April 1, 2022. This offers taxpayers the option to file their updated return within a specified deadline. This facility accommodates those who may have inadvertently omitted information in their previous ITR or have not filed despite it being mandatory under income tax laws.
Fines for Not Filing
However, filing an Updated ITR also incurs a late fee. Taxpayers must pay an additional tax amounting to 25% of the liability and interest if the return is filed within 12 months post the end of the respective assessment year. Filing between 12 months and before two years will result in a 50% additional tax. Failure to seize this last chance could lead to increased penalties, as being caught by the Income Tax Department later on could mean paying up to 200% of the payable tax in fines.
How to File Your Updated ITR
On the Income Tax filing portal, taxpayers must select the ITR-U form. Those claiming a refund must provide complete details, update any additional income, and then verify the return post-submission.
Note that if you have already filed an original, belated, or revised ITR for any past assessment year, or haven't filed a return for any, you're eligible to submit an updated return. However, there are instances where you cannot file an updated return, such as if your tax liability is lower than what was reported in the original return, or if the updated return results in a larger refund compared to the original.
