What is ITR-U? How to File ITR-U?

ITR-U or “Updated Income Tax Return” is a new form introduced by the Govt. of India, Department of Income Tax, which permits all taxpayers to file an “Updated Return” to rectify errors, omissions, and update your previously filed original ITR (Income Tax Return) on payment of additional taxes and interest. It can be filed within 24 months (2 years) from the end of the relevant assessment year. This scheme was introduced by the government in the budget of 2022.

How to calculate the time limit to file ITR-U

The time limit to file an ITR-U (Updated Return) is 24 months (2 years) form the end of the relevant assessment year (AY).

For example; if you have filed your income tax return for financial year (FY) 2020-2021 in the relevant assessment year (AY) 2021-2022, you can file ITR-U for the said ITR by the end of 31st March 2024. The time of 24 months (as mentioned above) is calculated from the end of the relevant assessment year, in this case, from 31st March 2022.

Financial Year (Assessment Year)Last date to file ITR-U (Updated Return)
FY 2020-2021 (AY 2021-2022)31st March 2024
FY 2021-2022 (AY 2022-2023)31st March 2025
FY 2022-2023 (AY 2023-2024)31st March 2026

More about ITR-U

This scheme is introduced with the object of providing an opportunity to taxpayers for voluntary compliance in order to rectify any errors or omissions in the original ITR and to reduce litigation or any legal action.

You cannot file ITR-U to reduce income, claim refund or increase losses.

The provision of “Updated Return” is available in Section 139 (8A).

Who can file ITR-U under section 139 (8A) ?

An “Updated Return” or ITR-U can be filed by any person who has made an error or omitted income details in any of the following returns:

1. Original Income Tax Return (u/s 139(1))
2. Belated Income Tax Return (u/s 139(4))
3. Revised Income Tax Return (u/s 139(5))

You can file ITR-U (Updated Return) in the following cases:

1. If the Original ITR (Income Tax Return) was not filed
2. If the Original ITR was filed, but;

– Income reported is incorrect
– Wrong “Heads of Income” chosen
– “Carried Forward Loss” needs to be reduced
– “Unabsorbed depreciation” needs to be reduced
– Tax Credit u/s 115JB (Min. Alternate Tax)/ 115JC (Alternate Min. Tax) needs to be reduced
– Paid Tax at wrong rate

Who is not eligible to file ITR-U (Updated Return) under section 139 (8A)?

1. ITR-U (Updated Return is already filed
2. The Original Return (ITR) is a Nil Return or a Loss Return
3. For claiming Income Tax Refund or increases Income Tax Refund
4. For decreasing Tax liability reported in the Original Return
5. Following cases of Search & Seizure:

– Search Proceedings have been initiated against the Assesse (taxpayer) under section 132
– Survey conducted under section 133A
– Seizure of books of accounts, documents and/or assets or called by Income tax department under section 132A
– Any prosecution proceedings have been initiated by Income Tax Department
6. If there is no additional tax liability, you cannot file ITR-U

Do we have to pay Additional Tax for filing ITR-U?

Yes, you will have to additional tax as per below mentioned slabs:

ITR-U Filing datesAdditional Tax
Within 12 Months from the end of relevant assessment year (AY)25% of additional tax, interest, and late fees
After 12 Months but before 24 Months from the end of relevant assessment year (AY)50% of additional tax, interest, and late fees

How to file ITR-U?

Step 1: Go to www.incometax.gov.in

Step 2: Click on Downloads

Step 3: Select the relevant Assessment Year (AY)

Step 4: Select (Download) the Utility Excel Based for relevant Income Tax Form (ITR-1 to ITR-7)

Step 5: Open the ITR Form and fill basic details in Tab INCOME DETAILS/ PART-A GENERAL

  • Name, PAN, Aadhaar, Address with Pincode, Email, Phone and other general details
  • Select “Filed u/s” and click on 139 (8A) – Updated Return

Step 6: In next tab PART-A GEN 139(8A)

  • A1 PAN
  • A2 Name
  • A3 Aadhaar
  • A4 Assessment Year
  • A5 Whether return previously filed for AY. Select Yes or No
  • A6 If ‘Yes’ in A5, select ‘139(1)’ if original return filed, or ‘Other’ if original return was revised or belated
  • A7 Fill ITR type, Acknowledgement number and Date of filing of original return. You check these details from previously filed ITR-V Acknowledgement
  • A8 Select yes, if you are eligible to file ITR-U Updated return as per above mentioned eligibility criteria
  • A9 Automatically selected
  • A10 Select ‘Reasons for updating your income’, you can select multiple reasons
  • A11 Select period of filing updated return (Upto 12 months or Between 12 to 24 months)
  • A12 Select option appropriately

Step 7: Fill the remaining form with updated income details, omissions etc

Step 8: Fill details of challan of additional tax paid u/s 140B

Step 8: Validate and Generate JSON file

Step 9: Login and upload JSON file on e-filing portal www.incometax.gov.in

FAQ’s Frequently Asked Questions

How many times can I file ITR-U for the same Assessment Year (AY)?

The e-filing portal does not allow to file ITR-U u/s 139 (8A) more than once for the same assessment year (AY). So you can file ITR-U for an assessment year (AY) only once.

Can I file ITR-U if I do not have any tax payable?

No, if you do not have any additional tax liability, you cannot file ITR-U.

Can I file ITR-U if my total income is below Rs. 5 Lakhs and I have claimed rebate u/s 87A?

Yes, but you will be liable to pay late filing fees under 140B.

Can I file an ITR-U (Updated Return) under the New Tax Regime (Can I change the tax regime in ITR-U) ?

A taxpayer has to choose from old or new tax regime while filing the original ITR. Once chosen, the taxpayer cannot change the tax regime while filing ITR-U.

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