Why to File ITR-U?

By the help of ITR-U people will be able to fix their mistakes or file returns which they missed earlier. It gives taxpayers a chance to update their tax return in the following cases:

• If they didn’t file the return earlier
• If some of the income was not reported correctly
• If the income was written under the incorrect category
• If earlier losses claimed are being reduced now
• If depreciation benefits claimed are being reduced now
• If the tax credit under sections 115JB/115JC is being lowered
• If the tax rate was incorrect

Extra Tax And Penalty

Income Tax Department has made a penalty system so that people file their ITR on time. The more you wait to file, the more you have to pay:

• You are required to pay 25% extra tax amount, if you file within 12 months after the end of the relevant AY
• You’ve to pay 50% extra tax if you file between 12 and 24 months
• You’ve to pay 60% extra tax if you file between 24 and 36 months
• If you file between 36 and 48 months, you’re required to pay 70% extra tax

According to the PTI report, in last three years 90 lakh people updated their returns resulting in Rs. 8,500 crore extra tax for the government.