New Delhi:
Are you worried that tax officials will follow you if you do not give information about income from rent or not include interest from saving account in tax returns? If yes, then tell that now you can breathe a little relief because the period of filing updated returns has been extended but along with this penalty will also be imposed on it. Let us know that in Budget 2022, facility was started to enable tax payers to file updated returns. Referring to this in his speech, the Finance Minister said, “Our trust in tax payers has proved to be correct. Around 90 lakh tax payers have voluntarily updated their income by paying revise tax returns. Taking further this trust, I now propose to extend the time limit of filing updated returns for any assessment year from the current two years to four years. ”
Revise returns can be admitted by the end of December
Salarid Employees have to file returns by 31 July, but revised returns can be filed by the end of December. In this way, the facility of updated returns is useful, as it enables tax pair to avoid investigation, punishment and serious legal consequences, otherwise it is considered undeclared income.
Tax experts regret not having some things
However, tax experts regret not having many other measures. For example, updated returns can only be filed when additional income for tax is to be offered: it cannot be admitted to tax benefit claims (eg deducted for donation under chronic system). If there was an original returns with a loss return, then updated returns cannot be filed to reduce the deficit claim.
Revise returns cannot be filed in deficit conditions
CA Ketan Vajani, says, “This amendment is being welcomed but the Legislature has missed out on addressing the request to allow updated returns in deficit-to-dot. I had a loss of Rs 10 lakh and if the taxpayer wants to file updated returns with a loss of Rs 8 lakh, then he cannot do so. “