The Income Tax Department said on Monday that taxpayers whose cases have been selected under the e-verification scheme can file updated income tax returns (Updated ITR) for the assessment year 2021-22 by March 31.
Income Tax Department said on Monday that taxpayers whose cases have been selected under the e-verification scheme can file updated income tax returns (Updated ITR) for the assessment year 2021-22 by March 31. The Central Board of Direct Taxes (CBDT) has found discrepancies between the information on financial transactions recorded in some ITRs filed for the 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, under the E-Verification Scheme-2021, the department is sending information to the taxpayers regarding mismatched information. The Income Tax Department has asked such taxpayers to file updated ITR.
What is Updated Return?
Updated returns were introduced in the Budget 2022 under section 139(8), under which the government gave the option to taxpayers to file their updated returns within a specified timeline. Its concept is to give an opportunity to the taxpayer that if he has not filed ITR, or there are some updates, then he should file the updated return.
When can you file Updated Return?
If you have filed original, belated or revised ITR or have not filed a return for any previous assessment year, then you can file an updated return.
When can you not file Updated Return?
Updated Return also comes with some 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 any asset has been confiscated, you cannot file an updated return.
How to file updated return?
For this you will have to select ITR-U form on the tax filing portal. If you have made a refund claim, you will have to give its details and update your additional income. And then after filling the form, you must verify your return.
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