Made ITR mistake? Today is last day to fix it
What's the story
As the March 31 deadline nears, taxpayers who have made mistakes in their tax returns still have a chance to amend them. The Updated Income Tax Return (ITR-U) is a provision under Section 139(8A) of the Income Tax Act that allows taxpayers to correct errors or report missed income. It can even be used to file a return if one was missed earlier.
Filing period
Deadline for ITR-U AY 2021-22 ends on March 31
The ITR-U can be filed within a four-year period from the end of the relevant assessment year. For example, for Assessment Year (AY) 2021-22, the deadline is March 31, 2026. But for AY 2025-26, it extends to March 31, 2030. However, it's worth noting that the sooner you file your return, the lesser will be your additional tax liability.
Eligibility criteria
Who can file an ITR-U?
Any taxpayer can file an ITR-U within the four-year window. This is applicable even if they have already filed an original, revised, or belated return. However, if a return has been filed earlier, its acknowledgment number has to be provided while filing the updated return. But do note that you can't file an ITR-U for nil or loss returns or if it reduces total tax liability/higher refund.
Filing restrictions
Things to remember while filing ITR-U
You can't file an ITR-U where search/seizure has been conducted or prosecution proceedings have been initiated. Also, filing an ITR-U comes with paying additional tax along with regular tax and interest. The amount increases with delay: 25% of tax and interest if filed within 12 months, 50% within 24 months, 60% within 36 months, and 70% between the period of 36-48 months.