​According to the Government Budget 2022, a taxpayer can now file updated income tax return within ______for correcting errors.​​

Correct option is C

The correct answer is (C) 2 years.

According to the Government Budget 2022, a taxpayer can now file an updated income tax return within 24 months from the end of the relevant assessment year for correcting errors.

Purpose

• ITR-U enables taxpayers to update previously filed returns to include any missed income or deductions, fostering compliance and helping avoid penalties.

Eligibility Window

• Taxpayers can file an updated return for the previous two assessment years from the end of the relevant assessment year. For example, for AY 2022–23, the ITR-U can be filed by March 31, 2025.

One-Time Submission

• ITR-U can be filed only once for a given assessment year. No further updates are allowed once submitted under this provision.

Types of Corrections

• Corrections may include adjustments to income, tax credits, or deduction errors. However, ITR-U cannot be used to claim or increase refund amounts.

Payment of Tax

• Any additional tax and interest must be paid before submitting the updated return to ensure accuracy and avoid discrepancies.

No Refund Claims Allowed

• ITR-U is not applicable for claiming refunds. It is primarily designed for reporting additional income and rectifying filing errors.