Budget 2022 brought in the Income Tax Return (ITR Filing -Updated), or ITR-U.
What does ITR-U stand for?
People who have already filed their taxes can change them by paying extra taxes if they find mistakes or things they forgot to include. This rule is meant to get people to follow the rules without being told, which will cut down on tax fights.
When can you file your next tax return?
You have two years from the end of the assessment year (AY) to file a new tax return if you owe money. You have until March 31, 2024, to file for FY 2020–21. You have until March 31, 2025, for FY 2021–22. For FY 2023–2024, the due date is March 31, 2027, but you can’t file until after December 31, 2024.
ITR-U can be submitted in situations whereby:
The initial return never was turned in.
Income was recorded inaccurately.
The chosen incorrect income heads were:
Adjust carried forward losses or unabsorbed depreciation.
Tax credits under sections 115JB/115JC were applied erroneously.
Calculation of tax rates was erroneous.
Events Where ITR-U Is Not Appropriate for filing.
ITR-U cannot be applied in cases whereby:
The outcome is either “nil,” or a loss.
It lowers the overall tax obligation of the original return.
It either generates or raises the refund owing.
