Kolkata: January 15, 2025 was the last day by when you could have filed Belated ITR (Income Tax Return). But if you have missed that deadline too – the earlier one was on July 31, 2024 – there is not much that you can do in terms of filing Belated ITRs. However, if you want to file ‘Updated returns’, you can do so by March 31, 2027 for FY24 (assessment year 2024-25). But experts warn that it will be possible only by paying hefty penalties and it will also come with restrictions.
Updated Income Tax Return can be done thorough ITR-U form. It allows taxpayers to update ITRs by rectifying errors or omissions, or allows one to file ITR if he/she has failed to file the ITR by the due date and also missed filing the Belated return. But it has to be done before the expiry of 2 years from the end of the pertinent assessment year.
Can I file a 2 year old tax return
Experts point out that Section 139(8A) of Income Tax Act 1961 allows one update ITR within two years with the stipulation that the period of 2 years should begin from the end of the year in which the original return was filed. It is clear from the arrangement that the key objective of launching ITR-U was avoid legal action but raising tax compliance. It was introduced during the Budget of 2022.
Can Updated ITR be used to lower tax liability
Experts point out that one cannot use Updated return to claim a lower tax liability as stated in the original ITR and claim additional refunds. Moreover, the tax filer has to pay heavy penalties too. “Besides paying the tax due and interest, if any, you will have to cough up a penalty of 25-50% on the tax and interest due, if any,” Kuldip Kumar, Partner, Mainstay Tax Advisors was quoted in the media as saying. The penalty is graded. If filed within 12 months from the end of the pertinent assessment year, a penalty of 25% will be paid. If filed within 24 months from the end of the AY, the rate of penalty will jump to 50%.
Usually, the last date for filing Belated ITR (Income Tax Return) is December 31 of any year. However, this year CBDT pushed it back to January 15, 2025 following a directive of Bombay High Court. But if you have missed that bus too, here is what you can face, and do. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
