Updated Return: What Is It?

As the name implies, an updated return lets taxpayers file a new income tax return (ITR) if they haven’t already, or it lets them fix any errors or omissions in their prior one. Nonetheless, 24 months after the conclusion of the applicable assessment year are allotted for the filing of amended ITRs. As a result, the Financial Year 2021–2022 is the earliest year for filing this kind of return.

In summary, the amended return can be used to: — File an ITR that was not previously filed; — Correct disclosures in income tax returns; and — Lower income tax credits.

Adjust the income head or make changes to it; lower the carryforward loss; lower the unabsorbed depreciation; and fix any incorrect rate of taxes Other

Revised Return: What Is It?

Contrarily, a Revised Return simply permits the taxpayers to make corrections for any mistakes or omissions that were committed when completing their initial return. Consequently, a revised return is an examination of the previously submitted return with the addition of accurate data. Additionally, three months before the relevant assessment year ends or before the assessment year is completed, whichever comes first, is the deadline for filing a revised return. Consequently, December 31, 2024, is the deadline for filing an amended ITR for the fiscal year 2023–2024.

See Also: Income Tax Return for Presumptive Income or Small Taxpayers

The updated return and the amended return differ in some important ways. Original return filing: If a return is updated, an ITR can be submitted without the original return being filed. On the other hand, filing the first return is required before filing a revised one.

Period: Two years after the conclusion of the applicable assessment year, an amended return may be submitted. On the other hand, the initial return must be submitted no later than three months before the relevant assessment year ends or before the assessment year ends, whichever comes first.

The purpose of an amended income tax return is to enable taxpayers to make additional tax payments on income that was not reported on the applicable return. However, the objective of a revised return is to provide the taxpayer a chance to amend the false information he included on his initial return.

Submission: For the applicable fiscal year, the amended return may only be filed once. On the other hand, there is no limit on how frequently the amended return must be submitted. As a result, amended returns may be submitted more than once within the allotted time.

Income Tax Liability: In the event of an increase in tax liability, an amended return may only be filed in order to raise income. Nonetheless, an amended return may be submitted in the event of both an increase and a fall in income.

Refund: The assessee is not eligible to receive a refund of income taxes in the event of an updated return. But he’s still eligible for the ITR reimbursement.

by submitting an updated tax return.

Penalty: For an updated return, there is a penalty equal to 25–50% of the tax due. However, filing an amended return does not incur any penalties.