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Economic Times
20-05-2025
- Business
- Economic Times
CBDT notifies ITR-U: Know who can file updated return, penalty, last date to file
The Central Board of Direct Taxes (CBDT) has notified the Income Tax Updated Return form, commonly called the ITR-U form. The new form has been notified as Budget 2025 amended the rules for filing ITR-U. The new filing rules are effective from April 1, per the new rules, ITR-U can be filed within 48 months from the end of the relevant assessment year. Earlier, taxpayers were allowed to file the updated return within 24 months from the end of the relevant assessment year. Now, taxpayers get an extra two years to file updated returns. Also read: 9 changes in ITR-1, ITR-2, ITR-3, ITR-4 for ITR filing 2025Tarun Kumar Madaan, Practising Chartered Accountant, says, "The revised ITR-U is a progressive step by the CBDT to promote voluntary tax compliance, enabling taxpayers to update their income for up to four years (48 months) from the end of the relevant assessment year. The Finance Act, 2025, has amended Section 139(8A) to extend the time limit for filing an updated return from 24 months to 48 months, effective from 01-04-2025. Accordingly, in the financial year 2025–26, a taxpayer can file updated returns for Assessment Years 2021–22 to 2024–25."The income tax rules specify the conditions under which a taxpayer can file the updated return. The tax return using ITR-U can be filed regardless of whether the taxpayer filed an ITR in the relevant assessment year. If the ITR is filed in the relevant assessment year, then the taxpayer is required to provide the acknowledgement number of the original ITR. Some of the conditions for filing ITR-U are income not reported correctly, ITR not filed previously, wrong heads of income chosen, wrong tax rate, etc. ITR-U cannot be filed if it leads to reduced income or a claim for an income tax refund. The income tax rules specify that ITR-U can be filed after the end of the relevant assessment year. The financial year 2024-25 ends on March 31, 2025. According to the updated return filing rules, ITR-U can be filed within 48 months of the end of the assessment year. The assessment year is the year in which the assessment of income earned in the previous fiscal year (a year ago) is done. This is done by filing an income tax return. The income earned between April 1, 2024 and March 31, 2025, is assessed between April 1, 2025 and March 31, 2026. Hence, for FY 2024-25, the assessment year (AY) is 2025-26. Madaan says, "The normal deadline for submitting an original Income Tax Return (ITR) for non-audit cases is 31 July of the relevant assessment year. If this deadline is missed, taxpayers can still file a belated return until 31 December of the same assessment year. However, once this window closes, the only remaining option is to submit an updated return (ITR-U). From January 1 onwards, updated returns become the sole available route for compliance. To facilitate this, the Income Tax Department updates its utility each year to enable the filing of ITR-U from January. Effective from 1 April 2025, the time limit to file an updated return has been extended to 48 months from the end of the relevant assessment year." He explains this with an example. For example, for the financial year 2024–25 (assessment year 2025–26), the original return can be filed until 31 July 2025; the belated return until 31 December 2025; and if both are missed, an updated return can be filed anytime from 1 January 2026 to 31 March 2030. However, this extended window is subject to conditions and restrictions under the Income Tax Act. Filing an updated return is not permitted in certain scenarios, such as when the return reflects a total income as a loss, resulting in a reduced tax liability, or leads to an increased refund, etc." According to income tax rules, the last date to file ITR-U is 48 months from the end of the relevant fiscal year. Hence, for AY 2025-26, the last date to file ITR-U is March 31, 2030. A penalty applies to filing an updated return using ITR-U, depending on how quickly the ITR is filed. Madaan says, "This extended window allows taxpayers to rectify past omissions, supporting the government's objective of improved compliance without prolonged litigation. The additional tax payable on updated returns has also been revised, with rates of 25%, 50%, 60%, and 70% applicable in the first, second, third, and fourth years, respectively." According to income tax rules, 25% of an additional tax on aggregate tax and interest is levied if the updated ITR is filed within 12 months from the end of the assessment year. This will hike to 50% as an additional tax if the updated return is filed between 12 months and 24 months. If the updated return is filed between 24 months and 36 months, then 60% as an additional tax is payable by the taxpayer. For updated returns filed between 36 months and 48 months, 70% of the additional tax is payable by the taxpayer.A taxpayer is required to select the period during which ITR-U is filed from the drop-down once filed must be verified as well.
Mint
18-05-2025
- Business
- Mint
India's meme marketing boom faces legal reckoning as copyright battles heat up
Mumbai: Remember when you casually shared the perfectly synced choreography of dance influencer Parveen Kumar Sharma on the viral hip-hop track 'Vartman'? While it feels like harmless fun, sharing such content can unknowingly step on copyright infringement. India's meme marketing boom, where pages earn lakhs monthly promoting brands through witty, viral content, is built on a fragile foundation of widespread copyright violations, misinformation, and regulatory grey areas. What started as a fun, low-cost way for brands to tap millions of young social media users has ballooned into a ₹3,000 crore industry by 2025, according to equity firm Equentis. 'When I started this page for fun in 12th standard in 2014, I never anticipated that it would become a lucrative business due to paid promotions," said Archit Madaan, founder of The Indian Sarcasm, a meme page turned marketing agency managing hundreds of pages. Yet as meme pages replicate content, lift clips from popular shows without permission, and skirt advertising disclosure rules, they risk legal crackdowns, reputational damage, and spreading fake news. Regulators and content owners, including makers of iconic shows like Taarak Mehta Ka Ooltah Chashmah, are fighting back through copyright enforcement and legal action, signalling that the meme economy's wild west days may be numbered. Meme marketing: The business model Meme pages, which began as casual, humorous posts, have now evolved into mini marketing agencies, offering brands a low-cost, high-impact way to reach millions of young social media users. "Meme pages have become a convenient source of promotions for brands, offering a high return on investment due to lower cost with charges starting with ₹1,000 per story and typically ranging between ₹3, 000 ₹6,000 per post," said Madaan. For brands, meme marketing is an affordable alternative to traditional advertising. For context, ₹5 lakh can deliver 10 million organic views, a reach that would typically cost far more on mainstream platforms, according to Madaan. "Niche pages with over a million followers are able to earn up to ₹20 lakh per month in this industry. Leading meme pages get 3-4 brand promotions per day if they regularly post 20-25 content pieces daily," Madaan added. Meme pages primarily generate revenue through advertising, including sponsored content and brand partnerships, as well as ad revenue from monetized videos. But as competition intensifies, content copying has become rampant. "When we work with brands, they usually whitelist those posts so they appear on both the brand's and our page. However, due to overcrowding and high competition, other pages often repost the same content across different social media platforms, inviting copyright strikes from the brands," he added. Copyright infringement: A growing legal flashpoint Meme pages routinely use clips from popular shows, infringing on copyright and intellectual property (IP) laws, and sometimes even the personality rights of actors. In August 2024, the Delhi High Court restrained unauthorized use of characters and content from Taarak Mehta Ka Ooltah Chashmah following a suit by Neela Film Productions, holders of the show's trademarks and copyrights. 'As makers of a brand spanning animation, games, merchandise, and gamified learning, we take copyright infringement seriously," said Asit Modi, managing director of Neela Film Productions. While fan-made content is welcomed, monetizing clips or characters like Jethalal or Daya Ben without permission is not tolerated. Mint reported earlier this week that user-generated content using copyrighted material does not attract legal action if it is not monetized. However, with copyright infringement rampant on social media, enforcement remains challenging. As a result, copyright holders often refrain from taking action unless significant financial losses are involved. Read this | Music labels crack the whip as influencers flout copyright rules on social media In addition to copyright violations, meme pages also risk infringing on personality rights, an individual's exclusive rights to control the commercial use of their unique traits such as name, likeness, image, and persona. Indian celebrities like Anil Kapoor, Amitabh Bachchan, and Jackie Shroff have secured these rights to prevent unauthorized use of their personalities in advertising, merchandise, and digital content. A representative for a Bollywood actor who has secured a personality trademark told Mint that they frequently request the removal of digital content profiting from the actor's videos on social media platforms. "With AI-generated content on the rise, protecting the integrity of our brand is crucial, especially when inappropriate or vulgar depictions compromise our family-friendly values. We actively enforce our rights through copyright strikes and legal notices to safeguard our brand and ensure that our content remains respectful and enjoyable for audiences across all platforms," Modi added. According to Neela Films' anti-piracy partner, approximately 10 million infringing links are taken down annually, 700,000 monthly, covering videos, games, and merchandise. The misinformation risk Meme pages are a favoured news source for many young Indians, but their influence carries the risk of misinformation and fake news. Read this | Rise of legal influencers raises concerns over consequences of misleading advice, say partners of top law firms "The meme industry is a powerful tool for disseminating information, leveraging its cultural relevance in the social media era. It predominantly appeals to younger audiences, often serving as their primary source for vital news and information," said Aditya Gurwara, cofounder of influencer marketing agency Qoruz. However, this influence comes with a downside. 'Over the years, we have observed the rise of misinformation and fake news on these platforms as well. Given their extensive reach, it is imperative to recognize the power memes pose in shaping public perception," Gurwara said. Lawyers point out that meme pages, while breaching Indian laws over other malpractices, also promote illegal products and services. "Under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, social media platforms are required to make reasonable efforts by themselves and ensure that its users do not publish or share misinformation or information which is patently false, untrue or misleading in nature," said Ishan Johri, partner at law firm Khaitan and Co. "Further, the Bhartiya Nyaya Sanhita 2023 also penalises persons that make hate speech and circulate false information and rumours with the intent to cause fear or alarm to the public. Apart from copyright infringement and fake news, problematic practices include advertising of unlawful products or services embedded within meme content," Johri added. Brands walking a legal tightrope Brands have embraced memes for their viral potential and cultural relevance despite the risks. Read this | Brand-influencer court battles set the boundaries for creators 'Brands are certainly aware of the reputational and legal risks associated with meme pages, particularly when it comes to copyright infringement. However, many still choose to engage, albeit carefully, because of the unique cultural relevance and viral potential these platforms offer. The key is rigorous vetting and clearly defined content guidelines," said Amiya Swarup, partner and marketing advisory leader at consulting firm EY. The Advertisement Standards Council of India (ASCI) prescribes caution for brands working with meme pages, as they often don't declare paid partnerships. Also read | Influencer marketing presents brands with its challenges, ROI biggest concern 'Major brands have successfully integrated memes into their marketing strategies, often generating millions of engagements. Such brand-owned or authorised communications qualify as advertisements under ASCI's framework and must comply with disclosure requirements," said Manisha Kapoor, secretary general of ASCI. 'This ensures transparency and helps consumers distinguish between organic content and paid promotions."
