Form Notified For Filing Updated Income Tax Returns

The Income Tax department has notified a new form for filing updated I-T returns in which taxpayers will have to give the exact reason for filing it

The Income Tax department has notified a new form for filing updated I-T returns (ITRs) in which taxpayers will have to give the exact reason for filing it along with the amount of income to be offered to tax.

The new form (ITR-U) will be available to taxpayers for filing updated income tax returns for 2019-20 and 2020-21 fiscals.  Taxpayers filing ITR-U, which can be filed within two years of the end of the relevant assessment year, will have to give reasons for updating the income tax return previously not filed or income not reported correctly or wrong heads of income chosen or reduction of carried forward loss.

The reasons given in the form also include reduction of unabsorbed depreciation or reduction of tax credit u/s 115JB/115JC or wrong rate of tax or any other reasons given by the taxpayers.

The Budget 2022-23 has permitted taxpayers to update their ITRs within two years of filing, subject to payment of taxes, a move aimed at helping correct any discrepancy or omissions.