Thread by @CAChirag

Taxpayers who has missed to file ITRs for FY 2019-20 and FY 2020-21 can file now – A thread 🧵

#IncomeTaxReturns #TaxTwitter

The income tax department has notified Form ITR-U for filing the ‘Updated’ income tax return available in Section 139(8A) for any person who has furnished/not furnished ITR

Taxpayers filing returns for FY 2019-20 will need to pay the tax due and interest along with an additional 50 per cent of such tax and interest. For FY 2020-21, the additional amount will be 25 per cent of the tax payable and interest

In ITR-U, the taxpayer needs to specify only the amount of additional income, under the prescribed income heads, on which tax is required to be paid. No detailed income break-up must be submitted, as in the case of filing regular ITR form

Taxpayer must specify any 7 reason for filing return in ITR-U:

1) Return previously not filed
2) Income not reported correctly
3) Wrong head of income
4) Incorrect rate of tax
5) Reduction of carried forward losses or unabsorbed depreciation
6) Reduction of Minimum Alternate Tax

Taxpayers cannot file returns in cases of

1) No additional tax outgo
2) A refund or increase in the refund amount
3) Search or survey or prosecution proceedings are initiated
4) Assessment/reassessment/revision/re-computation is pending

The Tax Dep is biased as it allows filing of ITRs of past years only in case of Tax liability & not in case of refund or filing for compliance, which many taxpayers require as income proof, etc

Note :You can only file if there is tax payable! -You know to read between the lines