Did you also miss the extended deadline of ITR Filling? You can still file an updated return, know how 

Big news for Income Tax payer’s. The Income Tax Department has extended the deadline for filing Income Tax Returns (ITR) to January 15, 2025. If you have missed this deadline, there is no need for concern, as you may still have the opportunity to submit an ‘updated return.’

For the financial year 2023-24 (assessment year 2024-25), this option is available until March 31, 2027. However, it is important to note that there are specific conditions and potential penalties associated with filing returns under this provision.

What constitutes an ‘updated return’?

The ‘updated return’ is a new facility introduced in the Budget 2022, allowing taxpayers to rectify mistakes or include any omitted information in their original, belated, or revised returns. This option is available under Section 139(8A) of the Income Tax Act.

This means that if you have not submitted your return by July 31, 2024, or if you wish to file a revised return, you can still do so. Even if you are unable to file by the extended deadline of January 15, 2025, you retain the option to submit your return until March 31, 2027.

If you have not submitted your tax return for the financial year 2021-22 (assessment year 2022-23) or if there were errors in your submission, you have the opportunity to file an updated return until March 31, 2025.

How to submit an ‘updated return’?

To submit an ‘updated return’, you must complete a form known as ITR-U. In this form, you are required to provide a justification for filing the updated return, which may include reasons such as missing the deadline, incorrect income selection, or inaccuracies in the original return.

Penalties and Conditions

While the option to file an ‘updated return’ offers some relief to taxpayers, it comes with specific conditions and penalties.

Penalty: When filing an ‘updated return’, you will incur a penalty ranging from 25% to 50% in addition to any tax and interest owed.

If you file the return within 12 months after the end of the relevant assessment year, the penalty will be 25%. If you file it within 24 months, the penalty will increase to 50%.

Restrictions: The ‘updated return’ cannot be used to decrease your tax liability or conceal any income. For instance, attempting to offset losses against profits will not be permitted.