The government will provide a one-time window to correct omissions in income tax returns, which can be filed within two years
Budget 2022Edited by Animesh SinghUpdated: February 01, 2022, 1:06 pm IST
The government has given taxpayers a one-time window to rectify anomalies in income tax returns
In a relief to taxpayers, who face a tough time in getting the anomalies in their income tax returns (ITRs) rectified, finance minister Nirmala Sitharaman on Tuesday said the government will provide a one-time window to correct omissions in such returns.
In her budget speech, she said that the updated returns will have to be filed within two years.
“To provide an opportunity to correct an error, taxpayers can now file an updated return, on payment of additional tax, within two years from the end of the relevant assessment year,” Ms. Sitharaman said.
Emphasizing that India is growing at an accelerated pace and people are undertaking multiple financial transactions, the finance minister said that the income tax department has established a robust framework for reporting taxpayers’ transactions.
“In this context, some taxpayers may realize that they have committed omissions or mistakes in, correctly estimating their income for tax payment,” she said as she announced the reform in the direct tax regime.
Ms. Sitharaman further said that filing an updated return is an “affirmative step in the direction of voluntary compliance.”