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Business News/ Money / Personal Finance/  Missed 31 Dec deadline? You can update the ITR

Missed 31 Dec deadline? You can update the ITR

ITRs filed after 31 July need to be revised within 30 days (from the previous 120 days) of filing ITR, as per CBDT rule

Missed 31 Dec deadline? You can update the ITR (Photo: iStock)Premium
Missed 31 Dec deadline? You can update the ITR (Photo: iStock)

The last date to file revised or belated income tax return (ITR) for financial year 2021-22 was 31 December 2022. If you have missed this deadline, then the option is to file an updated tax return (ITR U). This option was introduced in Budget 2022 and is available for up to 24 months from the end of the relevant assessment year.

ITR U can only be filed if a taxpayer has additional income to declare, irrespective of whether they have filed original ITR or not. “If someone wants to claim TDS refund by filing ITR U, that can’t be done as it cannot be used to file a nil tax return. A loss return too can’t be filed as reporting losses to be set off can reduce tax outgo. One can only pay additional taxes in an updated return," said Sujit Bangar, founder, TaxBuddy.

This is what differentiates a revised and an updated return. “A revised return lets you correct errors in the original ITR, which may reduce your net taxable income and final tax liability. But an updated return is filed only if there is additional tax to be paid," said Jigar Mansatta, a Jamnagar-based chartered accountant.

Income reported in ITR U attracts higher tax and penalties. ITR U, filed within 12 months, attracts 25% tax and that filed within 24 months attracts 50% tax on the aggregate of additional tax and interest accrued on it. This is over and above the tax levied as per the regular tax slab.

To explain with an example, say, you declared taxable income of 6 lakh in the original ITR and accordingly paid a tax of 32,500 on it. You have missed reporting 1 lakh income originally, so you file ITR U to update total taxable income to 7 lakh. Your tax liability will work out to 20,000 (as per tax slab) + 25% of 52,500 ( 32,500+ 20,000) + 1% monthly interest accrued on the additional 20,000 tax with effect from August 2022.

Verification deadline

ITRs filed after 31 July need to be revised within 30 days (from the previous 120 days) of filing the return, as per a new rule introduced by The Central Board of Direct Taxes (CBDT).

This means if you filed a last minute revised or belated ITR in December, you must verify it in January before the due date. Failing to verify ITR within 30 days will make it invalid.

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Shipra Singh
Shipra is part of Mint's personal finance team, covering tax, credit cards, insurance and investments. She has a keen interest in writing human centric features and deep dives on money trends that capture how people’s habits around saving, spending and wealth creation are evolving. Shipra hosts Monday episodes of Why Not Mint Money podcast. Before joining Mint in Sept 2021, she has worked as a finance journalist with Economic Times, Outlook and Entrepreneur India.
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Published: 05 Jan 2023, 10:05 PM IST
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