ITR-U is the Form used for updating your income tax return. The government introduced the concept of updated returns in the Union Budget 2022.
Have you ever forgotten to report an income or made a mistake in your ITR?
Section 139(8A) under the Income Tax Act allows you a chance to update your ITR within two years. Two years will be calculated from the end of the year in which the original return was filed. ITR-U was introduced to optimise tax compliance by taxpayers without provoking legal action. Read on to learn more about ITR-U.
The time limit for filing ITR-U is 24 months from the end of the relevant assessment year.
ITR-U is applicable from 1st April 2022. So during the current financial year 2022-23, you can file ITR-U for AY 2020-21 and AY 2021-22.
E.g., The Return of FY19-20 can be updated till 31st March 2023.
Original return of income, or
Belated return, or
Revised return
Did not file the return. Missed return filing deadline and the belated return deadline
Income is not declared correctly
Chose wrong head of income
Paid tax at the wrong rate
To reduce the carried forward loss
To reduce the unabsorbed depreciation
To reduce the tax credit u/s 115JB/115JC
A taxpayer could file only one updated return for each assessment year(AY).
ITR-U cannot be filed in the following cases:
Updated return is already filed
For claiming/enhancing the refund amount.
When updated return results in lower tax liability
Search proceeding u/s 132 has been initiated against you
A survey is conducted u/s 133A
Books, documents or assets are seized or called for by the Income Tax authorities u/s 132A.
If assessment/reassessment/revision/re-computation is pending or completed.
If there is no additional tax outgo (when the tax liability is adjusted with TDS credit/ losses and you do not have any additional tax liability, you cannot file an Updated ITR)
The time limit for filing ITR-U is 24 months from the end of the relevant assessment year.
ITR-U is applicable from 1st April 2022. So during the current financial year 2022-23, you can file ITR-U for AY 2020-21 and AY 2021-22.
E.g., The Return of FY19-20 can be updated till 31st March 2023.
Yes, you will have to pay an additional tax of 25% or 50% on the tax amount, depending on when you file the ITR-U.
ITR-U filed within
12 months from the end of relevant AY
24 months from the end of relevant AY
Additional Tax
25% of additional tax + interest
50% of additional tax + interest
FAQs
Form ITR-U is an updated return that allows you to update any of your previous returns within 24 months of filing.
ITR U is introduced to improve tax compliance by taxpayers without involving litigations.
No, you cannot file a Nil return in ITR-U. ITR-U cannot be filed when there is no additional outflow of tax.
By filing out ITR-U, one can avoid the Scrutiny assessment u/s 143(3), best judgement assessment u/s 144, and income escaping assessment u/s 147.
One can also avoid the hassle of a survey, search and seizure proceedings.
Yes, you can file ITR-U even if you missed the original ITR filing deadline.
However, you will have to pay the late filing fee u/s 234F and additional liability of 25% or 50% on the tax payable.
No, ITR-U cannot be filed in the following cases: claiming a refund, increase in the refund amount, nil return or filing a loss return.
Therefore, you cannot claim a refund in ITR-U.
No, if you have any pending Advance Tax challan or Self-Assessment Tax challan, the same should be reported u/s 140B(2), and the credit shall not be provided.
No, as per section 139(8A), you cannot enhance your carryforward loss.
You can only reduce the carryforward loss balance.
No, if your total tax is adjusted with TDS credit and you do not have any additional tax liability, you cannot file an Updated ITR.
Yes, you can file the updated return, but you will be liable for late filing fees.
The same must be paid, and the payment details must be updated under the “Taxes Paid under 140B” tab.
Yes, if you had filed ITR-1 for an assessment year and the updated return changes to ITR 2/3/4 due to the declaration of an additional source of income, such a submission will be accepted.
Get In Touch