BUDGET 2022: New ITR Filing Guide and How Much does it Cost to File an Updated ITR?

BUDGET 2022: New ITR Filing Guide and How Much does it Cost to File an Updated ITR? In her presentation of the Union Budget 2022, Finance Minister Nirmala Sitharaman did not mention any changes to the income tax slab rates. The Finance Minister, on the other hand, has granted some relief to those who are filing their amended Income Tax Return (ITR). In the event of less tax filing, the amended tax filing window will stay open for two years from the year of assessment, according to the FM. "To allow taxpayers to fix such errors, I'm proposing a new provision that allows them to file an updated return after paying additional tax. Within two years of the end of the relevant assessment year, this amended return can be filed "In her Budget speech, Sitharaman remarked.

How much does it cost to file an updated income tax return (ITR)?

"It is proposed that an extra tax equal to 25% or 50% of the tax and interest payable on the additional income furnished be needed to be paid," the Budget memorandum stated. The taxpayer would be compelled to pay more tax upon reporting such additional income. "This is not a cheap deal." "Those who choose to come clean must pay an additional sum stated in percentage terms of tax and interest payable at the time of providing the ITR whether the revised ITR is filed within 12 months (25%) or after 12 months but within 24 months (50%)," according to tax expert Balwant Jain. He went on to say that the implementation of the Annual Information Statement (AIS) has generated dread in the minds of taxpayers who have been avoiding paying their fair share of taxes. "Because the government lacks the necessary bandwidth to track and pursue taxpayers who have not fully declared their income or have not filed their ITR where the tax impact is minor, it has come up with a novel idea to allow taxpayers to come clean on their own, but at a cost, by uploading an updated ITR and paying the tax within two years from the end of the assessment year before the income tax departments discover it," says the report. While all taxpayers have the option of amending their tax returns within a five-month window following the due date of filing, the amended return can now be filed within two years of the relevant assessment year's end. Additional loss or a decrease in the tax due cannot be reported on the amended return. The tax must be paid before the amended tax return may be filed, and proof of payment must be attached to the updated form. As per the Budget memorandum, a new provision in section 139 of the I-T Act is being introduced for filing an updated return of income by any person, whether he has filed a return previously for the relevant assessment year, or not.