Income Tax return: FM Sitharaman announces new provision to allow taxpayers to file an updated ITR
- Budget 2022: Taxpayers can now file an updated return within 2 years from the relevant assessment year, announced FM Sitharaman
Union Finance Minister Nirmala Sitharaman on Tuesday announced a new provision to file updated Income Tax return (ITR) within 2 years of relevant assessment year. It gives a one-time window to taxpayers to correct any discrepancy or omissions in their ITRs within two years of filing, subject to payment of taxes.
To provide an opportunity to correct an error, taxpayers can now file an updated return within 2 years from the relevant assessment year, announced FM Nirmala Sitharaman in her Budget 2022 speech.
“If the time for revising ITR has passed or it has already been assessed, a taxpayer could no longer amend and pay additional taxes. (Earlier time period was end of AY). If the taxpayer wants to pay addl taxes and amend an already filed return, it can be done now, within 2 years from the end of the relevant assessment year. The intention is to allow taxpayers an opportunity to pay any unpaid taxes without severe consequences, in case they have made a mistake at the time of filing and return is already processed,” said Archit Gupta, Founder and CEO - Clear.
The Minister said that the I-T Department has established a robust framework of reporting of taxpayers' transactions and some taxpayers may realize that they have committed omissions or mistakes in correctly estimating their income for tax payment.
"Instead, with this proposal now, there will be a trust reposed in the taxpayers that will enable the assessee herself to declare the income that she may have missed out earlier while filing her return," FM Sitharaman added.
Further, Sitharaman said that the government has decided to reduce the corporate surcharge from 12% to 7%. Additionally, both Centre and States govt employees' tax deduction limit will be increased from 10% to 14% to help the social security benefits of state govt employees and bring them at par with the central govt employees.
The Finance Minister also proposed to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30%. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except cost of acquisition, she added.
"Income from virtual digital asset to be taxed at 30%. No deduction other than cost of acquisition will be allowed. Transaction details to be captured by way of TDS on sale. Gift of VDA to be taxed in the hands of the recipient," said Tapati Ghose, Partner, Deloitte India.
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Business NewsBudgetNewsIncome Tax return: FM Sitharaman announces new provision to allow taxpayers to file an updated ITR
First Published:1 Feb 2022, 12:17 PM IST
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