look news india
The Income Tax Department on Monday said that taxpayers whose cases have been selected under the e-verification scheme can file updated income tax returns (updated ITR) for assessment year 2021-22 by March 31. The Central Board of Direct Taxes (CBDT) found discrepancies between information on financial transactions recorded in some ITRs filed for assessment year 2021-22 (FY 2020-21) and the information available with the department.
In cases where returns have not been filed for assessment year 2021-22, but the department has information about high value financial transactions, they should also be scrutinized. In such a situation, the department is sending information about mismatched information to the taxpayers under the E-Verification Scheme-2021. The Income Tax Department has asked such taxpayers to file updated ITR.
What is updated return?
Updated returns under section 139(8) were introduced in Budget 2022, under which the government gave taxpayers the option to file their updated returns within a specified deadline. Its concept is to give an opportunity to the taxpayer that if he has not filed ITR, or there are some updates, he should file an updated return.
When can you file updated return?
If you have filed original, delayed or amended ITR or have not filed a return for any previous assessment year, you can file an updated return.
When can you not file an updated return?
The updated return also comes with certain conditions. You cannot file this return in some circumstances, such as-
1. If you are filing an updated return and your tax liability is less than the original return, then you will not be able to file it.
2. Even if the refund in the updated return is more than the original return, you will not be able to pay it.
3. Even if you have not filed the original return and are now filing an updated return to claim tax refund, you cannot file this return.
4. If you have filed an updated return for any assessment year, then it is not allowed again.
5. Apart from this, if any search is going on against you, any survey is going on. Even if an asset has been confiscated, you cannot file an updated return.
How to file updated return?
For this you have to select ITR-U form on the tax filing portal. If you have made a refund claim, you will need to provide details and update your additional income. And then after filling the form, you will have to verify your return.