5 lakh re-filings, 400 crore additional tax

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5 lakh re-filings, 400 crore additional tax

As many as 5 lakh re-filings have been made with about 400 crore additional tax coming in, a senior government official said on Thursday. The Finance Act of 2022 introduced a new concept of updated returns, which allowed taxpayers to update their ITRs within two years of filing, subject to payment of taxes. In May this year, a new form of ITR-U was made available for taxpayers to update their income tax return ITRs with any income or earnings that have been skipped in the original filings for fiscal years starting 2019 -- 20 the assessment year 2020 -- 21. So far about 5 lakh updated ITRs have been filed and about 400 crore taxes have been paid, he said. The compliance has improved substantially and even corporates are filing updated income tax returns, according to the official. One company filed an updated return and the amount of tax paid is Rs 1 crore, according to the data. He said that there is voluntary compliance now and people want to pay tax and stay clean. Taxpayers filing this form within 2 years of the end of the assessment year will have to give reasons for updating the income return previously not filed or income not reported correctly or wrong heads of income chosen or reduction of carried forward loss. The tax credit reduction under section 115 JB 115 JC or wrong rate of tax or any other reasons given by the taxpayers is one of the reasons given in the form. The Budget 2022-23 allowed taxpayers to update their ITRs within two years of filing, subject to payment of taxes, a move that will help correct any discrepancies or omissions. A taxpayer would be allowed to file only one updated return per assessment year. The government expects the collection from direct taxes to surpass budget estimates of Rs 14.20 lakh crore by about 3.30 lakh crore.