Avoid Paying 50% Extra Tax Payment, File Your ITR Before March 31:

Avoid Paying 50% Extra Tax Payment, File Your ITR Before March 31 The Income Department has advised taxpayers to file their updated Income Tax Return (ITR-U) as soon as possible to avoid higher penalties and extra financial stress. By filing an updated return before 31 March 2025, taxpayers can easily declare any unreported income or fix mistakes in their previous returns. To encourage people to follow tax rules, the government introduced a new option in 2022. It allows taxpayers to file an updated Income Tax Return (ITR-U) within 2 years from the relevant assessment year. However, they will need to pay some extra tax when using this option. Between April 1, 2024, and February 28, 2025, a total of 4.64 lakh updated Income Tax Returns (ITRs) were filed, and taxpayers paid Rs. 431.20 crore in taxes.