Understanding modified and revised income tax returns

Understanding modified and revised income tax returns


A novel idea under the Income Tax Act is an updated return, which is a move toward voluntary compliance rather than a protracted adjudication process. Regardless of whether a return of income has been filed for a particular assessment year, an assessee has the right to file an updated return for that assessment year within 24 months of the end of that assessment year to correct errors, omissions, or mistakes made while filing the original return, or to furnish income details in cases where no return has been filed previously. The first year for which an updated return can be filed is now FY 19-20.

The catch is that the taxpayer must pay an additional tax in addition to the regular amount of tax, interest, and late fines. If the revised return is filed now for the year ending March 2021, for example, an additional tax of 25% on the total tax (including interest and late fees) must be paid.


If the return is filed on or after April 1, 2023, an extra tax of 50% on the total tax (including interest and late fines) must be paid for the same year (FY20). This amended return window is accessible for up to 36 months after the end of the fiscal year.


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The overall tax on income could rise to 66 percent as a result of the additional taxes, but through voluntary compliance, the department’s punitive actions can be avoided. A high tax rate serves as a reminder to taxpayers to file their taxes as soon as possible. Higher taxes will be levied if you file late or incorrectly.


A revised return differs from an updated return. Even if the first return results in a higher refund or losses, or a lower tax liability, it can be changed. An revised return, on the other hand, cannot be filed if it increases the loss or refunds. There are no additional taxes for the updated return, which is another significant distinction, whereas updated return always comes with additional taxes. 

It’s likely that using a few images to describe the requirements of update returns will be beneficial. On August 30, 2021,


Arvind filed his IT return for the fiscal year ending March 2021. Now he realises that an interest payment of Rs 90,000 was not included in his tax return. Is it possible for him to file a revised tax return? Yes, he must pay the required taxes and file the return by March 2024.

Bhaskar has yet to file his IT tax return for the fiscal year 2020-21. He must record a loss of Rs 2 lakh from futures and options trading. Is he allowed to file?

No, you can’t file any revised returns that result in a refund. Similarly, if the department initiates a search or survey, an amended return cannot be filed in those situations as well. 


Those who are entitled to file UR returns can use Form ITR-U to file returns for the fiscal year ending March 2020 and following years. For under-reporting or misreporting of income, a penalty ranging from 50% to 200 percent can be applied under the Income Tax Act. The taxpayer can avoid or lessen the above-mentioned penalties by filing an amended return and revealing extra income.

The New ITR-U: 10 Things to Know Before Filing Your Income Tax Return

The New ITR-U: 10 Things to Know Before Filing Your Income Tax Return

Updated ITR Filing 2022: The IRS recently released a new form for the filing of Updated Income Tax Returns.

Updated ITR Submitting 2022:
The Internal Revenue Service recently released a new form for filing Updated Income Tax Returns. Budget 2022 featured a new idea of updated returns. It gives taxpayers two years from the end of the relevant assessment year to alter their ITRs. The new feature is meant to assist taxpayers who frequently make mistakes or omissions while filing ITRs.

The following are ten things you should know about the ITR filing update:

1. On the Updated ITR form, taxpayers must state the reason for filing as well as the amount of income that will be taxed in the updated return.

2. Taxpayers are not obligated to break down the income reported on their ITR (Updated).

3. Taxpayers can now file their amended income tax returns for fiscal years 2019-20 and 2020-21 using the new form ITR-U.

4. A digital signature or an electronic verification code is required for some taxpayers to file the Updated ITR electronically. The taxpayer must file the applicable assessment year’s ITR Forms and submit them with the new ITR-U.

5. Within two years of the end of the relevant assessment year, the ITR-U must be filed. Taxpayers must also explain reasons for revising their ITR in order to do so. There are a variety of reasons for submitting ITR-U, including a previous return that was not filed, income that was not declared correctly, incorrect income heads chosen, and the reduction of a carried forward loss, among others.

6. If an updated ITR is filed within a year (12 months) of the end of the relevant assessment year, a taxpayer must pay an extra 25% tax and interest owed.

7. If an amended ITR is filed after a year (12 months) but before 24 months from the end of the relevant assessment year, the taxpayer must pay an additional 50% tax and interest due.

8. If the person fails to pay the additional taxes, the return will be declared void.


9. If the entire tax owed is to be lowered and losses are to be offset against income, for refund, or for an increase in refund amount, you cannot file ITR-U.

10. For each Financial Year, a taxpayer can only file an Updated ITR once. As a result, it should be done with caution.

Have you missed the deadline for filing your ITR? Here’s what you can do

Have you missed the deadline for filing your ITR? Here’s what you can do

The Income Tax Return (ITR) for the fiscal year 2020-21 was due on December 31, 2019. If you miss the deadline, you can still submit a ‘belated ITR.’

A ‘belated return’ is when an income tax return is filed beyond the due date. However, taxpayers will be required to pay a penalty fee, as set forth in the Finance Act.

Section 234F of the Income Tax Act imposes a late fee for failure to file a return within the deadline for any assessment year, according to the guidelines. The fine may be as much as $5,000.

According to reports, under this provision, a late ITR can be filed up until March 31, 2022, with a $5,000 penalty. Taxpayers will only have to pay a fine of $1,000 if their total income does not exceed $5 lakh. If your income is less than $2.50 lakh, you will not be charged a late fee.

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If there been a gap in filing the original tax return, those who have already filed their ITR might file a revised return. The deadline to file amended income tax returns for the fiscal year 2021-22 is March 31, 2022.

The I-T department said on Saturday that around 5.89 crore income tax returns for the 2020-21 fiscal year were filed on the new e-filing platform by the December 31 deadline. Over 46.11 lakh ITRs were filed on the last day of the year, December 31.

Due to the second Covid-19 wave in the country, the deadline for filing income tax returns for the fiscal year was initially delayed from July 31, 2021 to September 30, 2021. It was subsequently extended till the end of the year after complaints about technical issues with the new IT platform for filing returns.