Chennai: Taxpayers who have made errors in filing their income tax returns can file an updated return within two years from the end of the assessment year. This is meant to reduce litigation, but will not provide additional refund. The assessee shall be liable to pay the additional tax together with interest and fee payable.
This will avoid the lengthy process of litigation if the department finds that some income has been missed out by the assessee. With this proposal, there will be a trust reposed in the taxpayers to declare the income that they may have missed out earlier while filing the return, finance minister Nirmala Sitharaman said.
Further, if a search or survey has been initiated against the assessee or bullion, jewellery, valuables or documents have been seized, the taxpayer will not be eligible for the updated return.