New Delhi: Nirmala Sitharaman, the Union Finance Minister, announced on Tuesday a new provision requiring taxpayers to file revised Income Tax Returns (ITRs) within two years of the relevant assessment year.
During her Budget 2022 speech, FM Nirmala Sitharaman declared that taxpayers will be granted longer time to revise their income tax returns (ITR). "I am recommending to file an updated return on payment of additional tax for two years from the end of the relevant assessment years," according to the notice. Individual taxpayers will have more time to complete revised income tax returns if they have missed disclosing income at the time of filing.
Currently, an individual has until December 31 (unless the government extends the deadline) to amend his or her ITR in order to provide a complete picture of the income obtained from various sources during the fiscal year. Taxpayers will have two years from the end of the relevant assessment year to file their proper ITR under the newly proposed law.