NE BUSINESS BUREAU
CHENNAI, MARCH 7
The Income Tax Department on Thursday, March 7, shared that all those taxpayers whose cases have been marked under the e-verification scheme will have to file their Updated Income Tax Return or ITR-U. It is a form that permits taxpayers to correct errors or omissions like under-reporting or wrong reporting in their previously filed ITRs within 2 years from the end of the assessment year.
“While examining high refund cases, the Income Tax Department, Tamil Nadu & Puducherry, has noticed that some taxpayers have claimed unusually large deductions u/s 80G (donations to Funds, Charitable institutions, etc.), 80E (interest on education loan) & 80GGC (contributions given to political parties) in their returns of income for A.Ys. 2021-22, 2022-23 & 2023-24. In certain cases, the taxpayers have claimed total deduction in excess of 80% of their Gross Total Income, which appears improbable,” says a release.
- Income Tax Department generates awareness about provisions of updated returns introduced u/s.139(8A) from April 1, 2022
- Under this provision, the taxpayer can correct errors of omission or commission within two years from the end of the relevant assessment year.
During inquiries made with such taxpayers, many were not able to provide evidence to prove the genuineness of the deductions claimed by them in their returns of income.
In this context, it is informed that from April 1, 2022, even after expiry of due dates for filing regular and belated returns, the taxpayers are allowed to file updated return on payment of some additional tax as provided in section 139(8A) of the Income-tax Act. Under this provision, the taxpayer can correct errors of omission or commission within two years from the end of the relevant assessment year. It is brought to the notice of all that if any errors have been committed while filing return of income, the same can be rectified by filing updated return (ITR-U) wherever found necessary by the taxpayer, the release added.
Last date for filing updated return (ITR-U) for AY 2021-22 (i.e. for FY 2020-21) is March 31, 2024.
