Taxpayers Can Update Their ITRs In 2 Years: FM

New Delhi- Union Finance Minister Nirmala Sitharaman on Tuesday gave a one-time window to taxpayers to correct any discrepancy or omissions in their ITRs within two years of filing, subject to payment of taxes.

In her 2022-23 Budget speech, the Minister said this is an "affirmative step in the direction of voluntary tax compliance".

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.

"To provide an opportunity to correct such errors, I am proposing a new provision permitting taxpayers to file an Updated Return on payment of additional tax. This updated return can be filed within two years from the end of the relevant assessment year," Sitharaman said.

The Minister said that the I-T Department had established a robust framework of reporting of taxpayers' transactions and some taxpayers may realise that they have committed omissions or mistakes in correctly estimating their income for tax payment.

"Instead, with this proposal now, there will be a trust reposed in the taxpayers that will enable the assessee herself to declare the income that she may have missed out earlier while filing her return," she said.

Besides, rationalising the surcharge regime, Sitharaman said she proposes to cap the surcharge on long-term capital gains arising on transfer of any type of assets at 15 per cent. This step will give a boost to the startup community, she said.

Currently, the long-term capital gains on listed equity shares, units, etc are liable to maximum surcharge of 15 per cent, while other long-term capital gains are subjected to a graded surcharge, which goes up to 37 per cent.

Nangia Andersen India Chairman Rakesh Nangia said this is going to greatly improve the investor sentiment, fuelling investment in the capital market, resulting in economic growth.

Follow this link to join our WhatsApp group: Join Now

Be Part of Quality Journalism

Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast.

ACT NOW
MONTHLYRs 100
YEARLYRs 1000
LIFETIMERs 10000

CLICK FOR DETAILS

Leave a Reply

Your email address will not be published.

KO SUPPLEMENTS