Income tax deadline on March 31: Taxpayers can avail 25% lower additional tax benefit on filing updated ITRs

The Income Tax Department has asked taxpayers to file the updated ITRs for AY 2023-2024 by March 31, 2025, to take advantage of a 25% lower additional tax and interest.

In a post on the social media platform X, the Income Tax Department informed about this new development.

“Kind Attention Taxpayers! Please file Updated ITR for AY 2023-2024 by March 31st, 2025 (If applicable) to avail lower additional tax of 25% and Interest. Don’t delay, file today!” the IT Department wrote.

Taxpayers can file updated income tax returns for the last two years before March 31. Updated tax returns can be filed anytime, it must be mandatorily done within two years of the end of the relevant assessment year. This would mean those who want to update their return for assessment year 2022-23 or financial year 2021-22 must file an updated return before March 31, 2025.

Who can file for updated ITRs?

Additionally, the IT department listed down the reasons why taxpayers can file for updated tax returns. The reasons are —

1) Taxpayers who have not filed for original updated tax returns.

2) If the taxpayers have missed the Belated Return Deadline.

3) To modify the original income tax return if-

a) Income was not declared correctly.

b) The wrong head of Income was chosen, or the tax was paid at the wrong rate.

c) Reduction in carry forward loss or unabsorbed depreciation is required.

d) Reduction of Minimum Alternate Tax (MAT) or Alternative Minimum Tax (AMT) credit is required.

4) If notice U/s 133(6) of IT Act 1961 for the claim of certain deduction or exemptions is received regarding which there is no suitable reply.

5) If wrongful deduction or exemption is claimed.

The concept of filing an updated return was introduced in the Finance Act 2022 when Finance Minister Nirmala Sitharaman announced the facility. Taxpayers can file an updated return to correct mistakes or omissions. This was introduced when paying additional tax.