Recent developments in the tax area can be overwhelming and lead to confusion. Governments often introduces new tax reforms, which can lead to changes in tax rates, deductions, and exemptions. As the tax filing season approaches, taxpayers often find themselves confused about the various types of income tax returns they can file. In this blog, we will delve into the three primary types of income tax returns: Original, Belated, and Updated.
1. Original Return
An original return is the first income tax return filed by a taxpayer within the prescribed deadline. This return is typically filed on or before the due date specified by the tax authorities, usually July 31st for individuals and October 31st for businesses.
Key characteristics of an original return:
- Filed within the prescribed deadline
- First return filed by the taxpayer
- No late fees, penalties or interest applicable
- While filing the original ITR, tax payer will get an option to choose between Old Regime or New Regime
- If taxpayer wants to make any changes in the ITR filed, Original ITR can be revised
- Since the ITR is filed on time, Business Losses and Capital Losses are allowed to be carried forward
- If excess tax is paid, then tax refund can be claimed
2. Belated Return
A belated return is filed after the prescribed deadline has expired. Taxpayers who miss the deadline can still file their return, but they will be liable to pay penalties and interest on the tax due.
Key characteristics of a belated return:
Filed after the prescribed deadline
- Late fees, penalties and interest applicable on the tax due
- Can be filed up to a certain period, usually 1-2 years from the original deadline
- Tax payer can file belated return only under New regime
- If taxpayer wants to make any changes in the ITR filed, Belated ITR can be revised
- Since the ITR is filed after the due date, Business Losses and Capital Losses are not allowed to be carried forward
- If excess tax is paid, then tax refund can be claimed
3. Updated Return
An updated return, also known as a revised return, is filed when a taxpayer needs to make changes to their original return. This can be due to various reasons, such as:
- Omission of income or deduction
- Incorrect reporting of income or deduction
- Change in tax liability
Key characteristics of an updated return:
- Filed to make changes to the original return
- Can be filed within a specified period, usually 1-2 years from the original deadline. (As per the recent Union Budget 2025, taxpayers now get 4 years instead of 2 years, to update their Income Tax Returns)
- Penalties and interest may be waived if the updated return is filed voluntarily
- Tax payer can file updated return only under New regime
- For a particular year, the taxpayer gets only one chance to file updated ITR, it cannot be revised
- Since the ITR is filed after the due date, Business Losses and Capital Losses are not allowed to be carried forward
- Tax refund cannot be claimed in updated ITR
Conclusion
Understanding the different types of income tax returns is crucial for taxpayers to ensure compliance with tax laws and regulations. While filing an original return is ideal, belated and updated returns provide opportunities for taxpayers to rectify errors or omissions. It is essential to consult with a tax professional or financial advisor to determine the best course of action for your specific tax situation.