Finance Minister Nirmala Sitharaman has not announced any changes in the income tax slabs in the Budget 2022 that was held on February 1. However, some relief is given to the taxpayers with the revised IT rules. One of the major announcements in the Budget 2022 was that the deadline for filing revised ITR will be extended for two more years, in case of late filing of tax.
Sitharaman said in her Budget speech, “To provide an opportunity to correct such errors, I am proposing a new provision permitting taxpayers to file an updated return on payment of additional tax. This updated return can be filed within two years from the end of the relevant assessment year.”
How Much Do Taxpayers Have To Pay For Updated Income Tax Return?
The budget memorandum stated that an amount equal to 25% or 50% as additional tax on the tax and interest due to additional income furnished would be required to be paid.
According to a report by LiveMint, these new rules will make the filing charges costlier. If the updated ITR is done within 12 months, the interest rate is 25% but for 24 months it will be 50%.
Previously, taxpayers had a window of 5 months for filing revised returns, now the window is expanded to 2 years. However, the updated IT return will not be filed if you don’t pay the extra charges and it cannot report an additional fall in tax liability. The new amount can only be more than the earlier reported amount.
A new provision is added to the IT act, it is to file an updated return of income by any person.
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