India: Guidance on filing updated tax returns

The updated tax return can be filed for the assessment year 2020-21 onwards.

The updated tax return can be filed for the assessment year 2020-21 onwards.

The Central Board of Direct Taxes (CBDT) issued a notification introducing new rule 12AC in the Income-tax Rules, 1962 prescribing the manner for filing an updated tax return.

The updated tax return can be filed for the assessment year 2020-21 (which begins 1 April 2020) onwards. The return must be filed in Form No. ITR-U, along with the applicable ITR Form from ITR-1 to ITR-7. 

Background

The Finance Act, 2022 introduced a new provision in the Income-tax Act, 1961 under which an updated return of income can be filed by any person within two years from the end of the relevant assessment year even if no return of income was previously filed.

An additional tax of 25% (on aggregate of incremental tax and interest) is required to be paid if such return is filed within one year from the end of the assessment year. An additional tax of 50% applies in other cases.

Read a May 2022 report [PDF 383 KB] prepared by the KPMG member firm in India

 

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