The deadline to file updated income tax returns is March 31, 2023

It may entail a higher tax at this stage, however, the taxpayer avoids the risk of paying a penalty

Bindisha Sarang
Last Updated at January 5, 2023 15:55 IST

Photo: Shutterstock

The deadline to file updated income tax returns (ITR-U) is March 31, 2023, for Assessment Year (AY) 2020-2021 (FY20). The Finance Act, of 2022 introduced this new ITR filing facility known as an updated return. A new sub-section 8(A) was added to Section 139 of the Income-Tax (I-T) Act for this purpose. This scheme came into effect on April 1, 2022. This new section provides the chance to update your ITR within two years. Any person who has made an error or omitted certain income details in original return of income, or belated return, or revised return can file ITR-U. Pallav Pradyumn Narang, partner, CNK says, “Two years will be calculated from the end of the year in which the original return was filed. ITR-U was introduced to optimise tax compliance by taxpayers without provoking legal action.” So, taxpayers have less than 90 days to file ITR-U for AY 2020-21 (FY 2019-20). Narang says,“A taxpayer can now file an updated return for the period from AY 2020-21.” The I-T department has also enabled ITR-U returns for the AY 2022-23 (FY 2021-22).

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