Finance Minister announced, in case of less tax filing, the revised tax filing window will be open for two years from the year of assessment.
New ITR filing: Finance Minister Nirmala Sitharaman has not made any change in the income tax slab rates in the Union Budget 2022 . However, he has certainly given some relief to people by giving them a chance to file Revised Income Tax Return (ITR). The Finance Minister announced that the revised tax filing window will remain open for two years from the year of assessment in case of less tax filing.
Sitharaman said in her budget speech, “To give an opportunity to correct such mistakes, I am proposing a new provision to allow taxpayers to file updated returns on payment of additional tax. This updated return can be filed within two years from the end of the relevant assessment year.
How much has to be paid to file updated ITR
According to the budget memorandum, tax payers will have to pay an additional 25 to 50 per cent tax on outstanding interest and tax on additional income.
According to media reports, Tax expert Balwant Jain said, “This offer is not cheap. Those who want to stay clean will have to pay an additional amount as a percentage of tax and interest payable at the time of filing ITR, which will be 25 per cent within 12 months or 50 per cent within 24 months if the updated return is filed.”
Taxpayers who avoid paying taxes scared of AIS
He said that the Annual Information Return (AIS) has created fear in the minds of taxpayers, who have been avoiding paying full tax. He said, “Since, the government does not have complete control to track those who have not declared their full income or those who do not file ITR due to low income, so it is coming up with a new idea to give a chance to the taxpayer to clean up. But for this an additional cost will have to be paid.
