Finance Minister Nirmala Sitharaman has not introduced any change within the earnings tax slab charges whereas presenting Union Price range 2022. Nonetheless, the Finance Minister has given some respite to folks submitting their revised Earnings Tax Return (ITR). FM has introduced that the revised tax submitting window will stay open for 2 years from the 12 months of evaluation in case of much less submitting of tax.
“To offer a chance to appropriate such errors, I’m proposing a brand new provision allowing taxpayers to file an up to date return on cost of extra tax. This up to date return may be filed inside two years from the tip of the related evaluation 12 months,” Sitharaman mentioned in her Price range speech.
How a lot do you need to pay for submitting an up to date earnings tax return (ITR)?
“It’s proposed that an quantity equal to 25 per cent or 50 per cent as extra tax on the tax and curiosity due on the extra earnings furnished could be required to be paid,” mentioned the Price range memorandum.
When reporting such extra earnings, the taxpayer could be required to pay extra tax. “This provide doesn’t come low-cost. Those that want to come clear should pay an additional quantity expressed in proportion phrases of tax and curiosity payable on the time of furnishing the ITR if the up to date ITR is furnished inside 12 months (25%) or after 12 months however inside 24 months (50%),”mentioned tax knowledgeable Balwant Jain.
He added that the introduction of Annual Data Return (AIS) has instilled a way of worry within the thoughts of taxpayers who’ve been evading paying full tax. “For the reason that authorities doesn’t have the requisite bandwidth to trace and chase the taxpayers who haven’t totally declared their earnings or haven’t filed their ITR the place the tax affect is just not very vital, it has come out with a novel thought to supply the taxpayer the possibility to come back clear on their very own however with sure extra price by importing an up to date ITR by paying the tax inside two years from the tip of the evaluation 12 months earlier than the earnings tax departments discover it out,” he mentioned.
Whereas all taxpayers have the avenue of revising their tax returns in a restricted window of 5 months from the due date of submitting of tax returns, now the up to date return may be filed inside a interval of two years from the tip of the related evaluation 12 months. The up to date return can’t be filed to report extra loss or lower within the tax legal responsibility. The tax is required to be paid earlier than the submitting of the up to date tax return and the proof to that extent is required to be hooked up whereas submitting the up to date return.
As per the Price range memorandum, a brand new provision in part 139 of the I-T Act is being launched for submitting an up to date return of earnings by any individual, whether or not he has filed a return beforehand for the related evaluation 12 months, or not.
Supply: Live Mint