Everything You Need to Know About the Updated Income Tax Return for Assessment Year 2024-25

Everything You Need to Know About the Updated Income Tax Return for Assessment Year 2024-25

As the deadline for filing Belated Income Tax Returns (ITR) ends, Still some taxpayers across India are facing challenges to file their returns for the assessment year 2024-25. An Updated Income Tax Return (ITR) is the solution for you designed to allow tax payers to file their Income Tax Return if a taxpayer has failed to file Income Tax Return even after due date of filing Belated Income Tax Return.

Here’s everything you need to know about the updated Income Tax Return for AY 2024-25:

1. What is an Updated Income Tax Return?

An updated income tax return allows taxpayers to correct any mistakes or omissions in their previously filed returns. The provision for filing an updated return was introduced in the Finance Act of 2021, and it gives taxpayers a chance to revise their original ITR and declare any missed income or claim any missed deductions.

For the assessment year 2024-25, the process has been further refined to include additional features, making it easier for taxpayers to correct errors and reduce penalties.

2. Key Changes in the Updated ITR Form for AY 2024-25

Enhanced Filing Process: The Income Tax Department has introduced a streamlined filing process for the updated ITR. Taxpayers can now file an updated return online with just a few simple steps. The process has been made more user-friendly, which helps reduce errors and confusion.

Extended Time Limit: The time frame within which you can file an updated return has been extended. For AY 2024-25, taxpayers can file the updated return within 24 months from the end of the relevant assessment year. This extended window provides a more comfortable time frame to make necessary adjustments.

Additional Fee Structure: The updated return provision comes with a nominal fee depending on the delay in filing. The fee is designed to encourage timely filing while also allowing some flexibility for those who need more time to review and correct their return.

Revised Taxpayer Disclosure: The updated ITR forms now require taxpayers to disclose additional information regarding the source of income, particularly for income that may have been missed in the initial return. This helps improve transparency and ensures that all income is accounted for accurately.

Clearer Guidelines for Claiming Deductions: One of the major highlights of the updated ITR form for AY 2024-25 is the clearer guidelines on claiming deductions, especially for deductions under Section 80C, 80D, and other sections. Taxpayers will now have a more structured way to claim and substantiate these deductions, reducing the chances of errors or rejections.

3. Who Should File an Updated Income Tax Return?

You should consider filing an updated ITR for the following reasons:

• If you missed declaring some income in your original return.
• If you missed claiming deductions that you were eligible for.
• If there were any errors in the details provided, such as a wrong bank account number or incorrect personal information.
• If you received a notice from the Income Tax Department requiring clarification or correction of your filed return.

4. Benefits of Filing an Updated Return.

Avoid Penalties: Filing an updated return within the stipulated time can help you avoid higher penalties or legal repercussions. Correcting mistakes early is far better than waiting for the Income Tax Department to catch them.

Claim Refunds: If your original return did not reflect all the eligible deductions or exemptions, filing an updated return can ensure that you get the full refund you’re entitled to.

Stay Compliant: Filing an updated return ensures that your tax filings are up to date and compliant with the latest tax laws. It also reduces the chances of your return being flagged for scrutiny or audit.

5. How to File an Updated Income Tax Return?

Filing an updated ITR is a straightforward process:

• Log In to the Income Tax e-Filing Portal: Visit the official Income Tax e-filing portal and log in with your credentials.
• Select the Correct ITR Form: Choose the updated ITR form that corresponds to your income and situation.
• Fill in the Details: Provide the correct and updated information, ensuring that all income, deductions, and other relevant details are accurate.
• Submit the Return: After filling in the updated information, review your return thoroughly before submitting it online.
• Pay Any Due Tax: If the updated return results in additional tax liability, ensure you pay it within the prescribed time to avoid further penalties or interest.

6. Key Deadlines for Filing an Updated Return

• The last date for filing the updated return for AY 2024-25 is March 31, 2026.
• Filing beyond this deadline could result in penalties or missed opportunities for claiming refunds.

Conclusion:

The updated Income Tax Return for Assessment Year 2024-25 presents a great opportunity for taxpayers to rectify any errors or omissions in their tax filings. With the extended timeline, clearer guidelines, and user-friendly filing process, it’s never been easier to ensure your tax return is accurate and complete.

If you’re unsure about how to file your updated return or need help with complex tax matters, Contact Corporate Genie on +91-8700202997 | +91-9717332997 | +91-9873242997 or visit our website www.corporategenie.in or write us on info@corporategenie.in

Remember, filing an updated return not only ensures compliance but also helps you avoid unnecessary penalties and maintain a clean financial record.