However, there is another chance for those who are yet to file their ITR. ITR-U The budget was introduced by the central government in 2022 and is available for up to 2 years from the end of the relevant assessment year (AY).
What is ITR-U?
With ITR-U, a taxpayer can report any income that he may have failed to make in the previous return. This option is also available to all those who have not submitted timely, late or revised ITR. Also, if ITR has not been closed in any financial year, then this facility can also be used there.
The due date for ITR-U for AY 2020-21 is March 31, 2023 and for AY 2021-22 is March 31, 2024. For assessment year 2022-23, it is March 31, 2025.
Is there any penalty for ITR-U?
If you have not reported the income, an additional tax is levied at 25% of the tax payable on the unreported income plus interest. The penalty has to be paid within 12 months from the end of the relevant assessment year.
On the other hand, when an ITR-U is filed after 1 year and within 2 years from the end of the relevant assessment year, the penalty increases to 50%.
Where to file ITR-U?
can submit on eportal.incometax.gov.in, Also, it cannot be used in cases of: nil or loss return, claiming or increasing refund, and reducing income tax liability from previously closed returns.
