Finance Minister Nirmala Sitharaman made amendments to the ITR filing norms for regular taxpayers.
Now taxpayers will get a one-time window to correct any discrepancy or omissions in their ITRs within two years of filing.
An additional 25 per cent on the due tax and interest would have to paid if the updated ITR is filed within 12 months, while the rate will go up to 50 per cent if it is filed after 12 months, but before 24 months from end of relevant Assessment Year (AY).
Currently, if the I-T Department finds out that some income has been missed out by the assessee, it goes through a lengthy process of adjudication, and the new proposal would repose trust in the taxpayer.
The taxpayers can file a revised or belated ITR of relevant financial year till December 31. Sitharaman said that the I-T Department has established a robust framework of reporting of taxpayersâ€™ transactions and some taxpayers may realise that they have committed omissions or mistakes in correctly estimating their income for tax payment.
As per the Budget memorandum, a new provision in section 139 of the I-T Act is being introduced for filing an updated return of income by any person, whether he has filed a return previously for the relevant assessment year, or not.