Declaration Alert on income tax: Last time to submit ITR-U today March 31

New Delhi: Taxpayers who want to correct any errors or the wrong income tax report must submit the updated income tax return (ITR) before March 31, 2025. There will be an additional tax if this is not done until the deadline.

An ITR could be submitted if a previous statement had not filed, a income statement was made incorrectly, the income ends were incorrectly selected or the advancement losses were reduced. Taxpayers have two years from the end of the year of relevant evaluation to voluntarily correct errors or omissions in income tax declarations using ITR.

ITR-u: Report omissions, errors

This clause is applicable when previous records contain incorrect mistakes, omissions or statements. Taxpayers can submit ITR to FY22 (AY 2022-23), FY23 (AY 2023-24) and FY24 (AY 2024-25) before March 31. Taxpayers who fail to do so within the deadline will have to pay a higher tax, which will vary depending on the term to which the return will be submitted.

According to section 140B, if an updated statement is submitted within 12 months, there will be an additional fiscal obligation of 25% of the total tax, interest, surcharge and termination. If submitted after 12 months, but within 24 months, there will be a fiscal obligation of 50% from the end of the relevant evaluation year.

Who can deposit itr-u?

The ITR-U concept in section 139 (8A) of the Law on income tax, of 1961, which, as introduced by the Finance Law, 2022, allows taxpayers to voluntarily correct the errors or omissions in income tax declarations within two years from the end of the year of relevant evaluation.

Taxpayers can submit an ITR-u when a preliminary return is not submitted, a declaration of income is incorrect, the income ends are incorrectly selected or the losses transported are reduced. It can also be deposited when a tax loan under section 115JB/115JC is reduced, an incorrect tax rate is applied and an unsecured impairment is reduced.

According to section 139 (8A), any taxpayer, whether they have previously submitted an original, revised or late return, may submit an updated return.

The deadline for submitting prolonged ITRs

The deadline for submitting updated ITRs has been extended from two years to four years after the end of the relevant evaluation year, within the budget 2025. Taxpayers now have additional time to correct any mistakes or omissions on their original return.