Taxpayers can file only one updated return in an assessment year
New Delhi:
Central Board of Direct Taxes (CBDT) chairman JB Mohapatra on Wednesday said that a taxpayer will be allowed to file only one updated return for the assessment year.
Speaking at an industry event, Mr Mohapatra said that the purpose of this provision is to help those who have actually missed filing their returns.
Such taxpayers “can file only one updated return for an assessment year”, he said.
To rectify any discrepancy or omission, Budget 2022-23 has allowed taxpayers to update their Income Tax Return (ITR) within two years of filing, subject to payment of taxes.
An additional 25 per cent will have to be paid on the tax and interest due if the updated ITR is filed within 12 months, while this rate will increase to 50 per cent if it is filed after 12 months, but 24 months before the end of the relevant period. of assessment year.
However, if prosecution proceedings are initiated by issuing a notice for a particular assessment year, the taxpayer cannot avail the updated return benefit in that particular year.
Further, if a taxpayer files an updated return and does not pay the additional taxes, the return will become invalid.
At present, if the Income Tax Department finds that some income has been omitted by the assessee, it goes through a lengthy process of adjudication, and the new proposal will re-establish trust in the taxpayer.
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