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Missed a Chance to File Belated ITR, Next Option is ITR-U

ITR-U Form After Missing Belated ITR

December 31 was the deadline to file your belated tax return. ITRs for the financial year (FY) 2021-22 were required to be filed by July 31, 2022, for most professionals, small businesses, and individuals who earned income from salaries.

For individuals who couldn't submit their Income Tax Return (ITR) by July 31, 2022 (other than those who were subject to tax audit), there was the option of submitting the return by December 31, 2022 by paying a late fee of up to Rs 5,000. The fine would double, to Rs 10,000, if not filed by the end of 2022.

Simple to Understand Belated Income Tax Return

Defining a belated return as one that was filed after its due date. In terms of Section 139 (4) of the Act, a belated income return can be filed up to three months before the end of the relevant academic year, or before assessment has been completed, whichever is sooner. The deadline for filing a belated tax return was December 31, three months before the end of the fiscal year.

There are, however, some circumstances in which you may not be able to file ITRs voluntarily after December 31 of the AY. Following that, you will have to request permission from the IT department or be told what to do as soon as your income and tax details are picked up for scrutiny by the IT department.

Additionally, you can file an updated ITR if you missed the deadline for filing a belated return, as announced in Budget 2022.

What is ITR-U (Updated Income Tax Return)?

In the course of a particular financial year, an individual can file an updated income tax return (ITR-U) form, regardless of whether they have filed an original, belated, or revised income tax return. You cannot use ITR-U to claim a refund of income tax, make a loss claim, or show a loss.

Until the end of the relevant assessment year, an updated income tax return cannot be filed. According to a tax expert, if you do not file your belated ITR now, you will be able to file your updated ITR from April 1, 2023.

Moreover, if ITR-U is filed for FY21-22 (AY 2022-23) within the first relevant assessment year, the taxpayer will be liable to pay 25 per cent additional tax on the tax due. It is expected that users will begin on April 1, 2023, and end on March 31, 2024. It should be noted, however, that if the application was filed between April 1, 2024, and March 31, 2025, then 50 per cent of the due tax will have to be paid as additional tax.

Individuals who have not filed an ITR earlier and who have no pending income tax obligations may file an updated return. A penalty will be assessed under Section 234F for a late ITR filing.

Those without pending income tax dues and who have not filed an ITR earlier can also file an updated return. Nevertheless that persons who are late filing their returns will be required to pay a penalty under Section 234F.

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