75,000 Updated Tax Returns Filed, Gamers Under Scanner

Even if numerous online gamers are being investigated for not paying taxes for prior years, approximately 75,000 revised income tax returns have been filed willingly in the four months since the updated returns scheme was introduced. 

The government is about to launch a campaign to make updated income tax returns more widely known. This initiative was introduced in the budget to encourage voluntary compliance. As the department obtains data via technology and from various government sources, the central board of direct taxes is prepared to send letters to defaulters of the prior two years, requesting that they file updated returns. 

Assessees may amend their income tax returns going back two years under the revised return scheme, which went into effect on April 1. The taxpayer must pay an additional 25% tax on the total tax and interest owed if the amended returns aren't filed within a year. If the ITR is updated between 13 and 24 months, the penalty doubles to 50%. On a simple interest basis, self-assessment tax penalties are assessed at a rate of 1% each month. 

From April through July, self-assessment tax collections increased by a staggering 275% to $43500 crore. "Even though our campaign has not yet begun, 75,000 revised returns have been submitted. Soon, we'll launch a campaign alerting assessees to the possibility of revising their returns. Second, we'll begin informing people that they need to file updated returns if they haven't paid their taxes "a high-ranking government official said. He further stated that using other data sources or through investigation, the tax authorities would be looking over returns submitted over the previous two years. "When we recently conducted an inquiry, we discovered that a significant number of people, including online gamers and others, had neglected to file returns for the previous two years. They will be required to submit revised returns, "the official added.