New ITR Rules: How Much Do Taxpayers Have To Pay For Updated Income Tax Return

New Delhi: Finance Minister Nirmala Sitharaman has not announced any changes in the income tax slabs in the Budget 2022. However, some relief has been provided to the taxpayers by the way of revised income tax returns. FM announced that the deadline for filing revised ITR will be extended for two more years, in case of less filing of tax.Also Read – Taxpayers Can File Updated ITR Within 2 Years. What it Means

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.” Also Read – 20 Shares That May Help You Book Good Profit Post Budget

How Much Do Taxpayers Have To Pay For Updated Income Tax Return?

The Budget memorandum also said, “It is proposed that an amount equal to 25 per cent or 50 per cent as additional tax on the tax and interest due on the additional income furnished would be required to be paid.” Also Read – Budget 2022: Odisha ‘Shocked’ By Neglect Of Demand On Rural Housing, Reduction In MGNREGS Allocation To Hit Poor, Says Naveen Patnaik

According to a report by Mint, these new guidelines will make the filing charges costlier. If the updated ITR is furnished within 12 months, the interest payable would be 25 per cent. If it is filed within 24 months, the interest payable would be 50 per cent.

Earlier, the income taxpayers had a window of 5 months for filing revised returns. Now, the window has been expanded to 2 years. However, the updated return cannot be filed without incurring extra charges. Also, the updated return cannot report an additional fall in tax liability. The revised amount can only be higher than the earlier reported amount.

Additionally, a new provision is being introduced in the Income Tax Act to file an updated return of income by any person.