Taxpayers can only file one updated return in an assessment year
New Delhi:
Central Board of Directors for Direct Tax (CBDT) chairman JB Mohapatra said Wednesday a taxpayer will only be allowed to file one updated tax return.
Speaking at an industry event, Mr. Mohapatra said the purpose of the provision was to help people who had actually missed filing their tax returns.
Such taxpayers “can only file one updated tax return in one assessment year,” he said.
To correct any discrepancies or omissions, budget 2022-23 allowed taxpayers to update their income tax returns (ITRs) within two years of filing, subject to tax payment.
An additional 25% tax and interest will be payable if the updated ITR is filed within 12 months, while the rate will increase to 50% if filed after 12 months, but before 24 months from the end of the tax year. relevant price.
However, if a prosecution is initiated with the issuance of a notice for a particular assessment year, the taxpayer cannot take advantage of the updated reimbursement benefit in that particular year.
In addition, if a taxpayer files an updated return and fails to pay the additional taxes, the return will be considered invalid.
Currently, if the income tax department finds that some earnings have been omitted by the assessee, it will have to go through a lengthy adjudication process and the new proposal will give the payer confidence. tax.
