Missed Income in Your ITR? Few Days left to file ITR-U:

Missed Income in Your ITR? Few Days left to file ITR-U Have you missed reporting income or made mistakes in your Income Tax Return (ITR)? Well, you still have another chance to correct them using the updated return or the ITR-U. Understanding ITR-U ITR-U, also known as the Updated Return, is filed under Section 139(8A) to help the taxpayers correct errors or omissions in the original return or report the missed income within 48 months from the end of the relevant assessment year. However, taxpayers are required to pay additional taxes.

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Here is how the additional tax is imposed:

• 25% if the updated return is filed within one year.
• 50% if filed within two years
• 60% if filed within three years
• 70% if filed within four years

Taxpayers must note that ITR-U cannot be used to claim a refund or reduce a tax liability. Difference Between Updated Return and Revised Return Many taxpayers often think that an updated ITR and a revised ITR are the same; however, they are not. ITR-U allows taxpayers to update their return for up to four previous financial years, and it involves extra tax. ITR-U is meant for cases where the income was omitted, whether intentionally or unintentionally. On the other hand, a revised return allows the taxpayers to correct errors made in the original return filed before December 31 of the assessment year without extra payment. This is meant for correcting genuine mistakes. Major Relief for FY 2024-25 For the financial year 2024-25, taxpayers can revise their return between March 1 and March 31, 2026, without paying any additional tax or penalty. Taxpayers will only be required to pay the interest applicable. This is a one-time opportunity encouraging voluntary compliance among the taxpayers. Consequences of Missing ITR-U Deadline Missing the last date of ITR-U means losing the opportunity to correct errors or disclose omitted income. The income tax department may also issue notices and initiate proceedings. The department can levy heavy penalties of up to 200% of the tax due, along with interest and prosecution in some cases.

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Required Documents for ITR-U Taxpayers should keep these key documents ready to file ITR-U:

• Form 26AS
• Annual Information Statement (AIS)
• Taxpayer Information Summary (TIS)

March 31 Due Date for Filing Updated Return Since March 31 is approaching, the experts are advising the taxpayers to file ITR-U, as it is the last opportunity to avoid the lengthy litigation. If taxpayers fail to file the updated return before this due date, they will have to face notices, penalties, and legal proceedings.