Missed Your ITR for AY 2021-22 or 2022-23? Last Chance to File!
Good news for taxpayers who either missed filing their Income Tax Returns (ITR) for Assessment Years (AY) 2021-22 or 2022-23, or need to correct past errors! The Income Tax Department has officially opened the window for filing Updated Returns (ITR-U). This is your final opportunity to set things right, but remember, it comes with specific conditions.
What is an Updated Return (ITR-U)?
An ITR-U, filed under Section 139(8A) of the Income Tax Act, allows you to voluntarily correct or complete your past tax filings. Crucially, this facility is only for declaring additional income that you might have missed reporting earlier. It’s a lifeline to ensure compliance before the authorities come knocking.
Who can file?
- Individuals or Hindu Undivided Families (HUFs) eligible for ITR-1 or ITR-2.
- Those who missed filing their original return altogether.
- Those who filed but need to correct errors or disclose extra income.
What you cannot do with ITR-U:
- Claim or increase a refund.
- Declare a loss.
- Reduce your tax liability.
Key Deadlines You Can’t Afford to Miss
You have a generous 48-month window from the end of the relevant assessment year to file your ITR-U, but the penalties increase with delay.
- For AY 2021-22: The deadline to file your Updated Return is March 31, 2026.
- For AY 2022-23: The deadline to file your Updated Return is March 31, 2027.
Understanding the Penalty Structure
Don’t wait till the last minute! The later you file your ITR-U, the steeper the penalty on your additional tax dues. This is over and above the regular tax and interest you owe.
- Filed within 12 months from the end of the relevant AY: 25% additional tax.
- Filed between 13–24 months: 50% additional tax.
- Filed between 25–36 months: 60% additional tax.
- Filed between 37–48 months: 70% additional tax.
How to File Your Updated Return
The Income Tax Department has enabled filing through both the e-filing portal and an Excel-based offline utility. Excel Utilities for filing updated returns in ITR-1 and ITR-2 for AYs 2021-22 and 2022-23 are now available.
- Access the e-filing portal: Visit the official income tax website.
- Login/Register: Use your PAN credentials.
- Choose “Updated Return”: Navigate to the relevant section under Section 139(8A).
- Select ITR Form: Choose either ITR-1 or ITR-2.
- Fill in Details: Enter your new income information and clearly state the reason for updating (e.g., missed income). If you filed an original return, provide its details.
- Calculate & Pay: The system will calculate your total tax, interest, and the additional penalty. Ensure all dues are paid before submission. You’ll need to enter your Challan details.
- Submit & E-verify: Submit your return and complete the e-verification process. Remember to e-verify within 120 days or send the ITR-V to CPC Bangalore.
What You’ll Need
Keep these documents handy to ensure a smooth filing process:
- Your PAN and Aadhaar details.
- Details of your original return (if you filed one previously).
- Bank statements and all relevant income proofs.
- Tax payment Challan details for any additional tax you’ve paid.
Important Points to Remember
- Any additional tax you pay when filing an ITR-U is not refundable.
- This facility is a proactive measure to encourage voluntary compliance and provides an opportunity to regularize your tax affairs before authorities initiate any proceedings.
Don’t let this final chance slip away. Correcting your past tax mistakes now can save you significant trouble and higher penalties down the line!
Do you have all the necessary documents ready to start filing your Updated Return?