Income Tax Department has issued a new form to file an updated income tax return (ITR) for the financial years 2019-20 and 2020-21. The taxpayers can now file their updated tax return with the reasons for refiling it and other details like the total taxable amount. They have to furnish the reason for updating their income and not filing their tax return before with correct income details. The income tax department has confirmed that new released ITR form can be filed for an updated return within the two years from the end of the relevant assessment year. The existing ITR will be continued to be filed within due dates u/s 139(1) or belated return u/s 139(4) or revised return u/s 139(5). The said ITR-U will be filed after the end of the assessment year of any ITR.
The department has taken this step in order to give an opportunity to rectify the mistakes made in the ITR form. A taxpayer will be permitted to file an updated return only once in each assessment year. Updated return can be filed even if the original return was not filed.
In the new ITR form, the information has been updated and things have been kept precise to facilitate easy return filling with relevant information for the taxpayer. In this, only those details which are needed to represent the income tax will be asked. That means, there is no need to provide additional information aside from your updated income unlike details in the regular ITR form. The reason for filing the updated income tax return for an updated income will also have to mention in the form itself.
Income tax return filing needs a lot of relevant information and documents. The missing information and a single mistake in the form can lead to a heavy penalty or legal notice. So, using premium tax filing software such as HostBooks is prudent. It keeps you away from all the difficulties and helps you file your return easily.
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