ITR-U (Updated Return) | Snehsanskriti

ITR-U (Updated Return) – What is ITR-U and When to File ITR-U?

By Admin At Jan 31, 2023

CBDT vide Notification No. 48/2022 dated 29.04.2022 in G.S.R. 325(E) through Income-tax (Eleventh Amendment) Rules, 2022 notified Rule 12AC for furnishing Updated Return of Income in Form ITR-U as per the provisions of section 139(8A) of the Income Tax Act, 1961.

What is ITR-U?

Section 139(8A) under the Income Tax Act gives you an opportunity to update your ITR within two years. Two years will be calculated from the end of the assessment year in which the original return was filed.

Who can file ITR-U?

Any person who has made an error or omitted certain income details in any of the following returns can file an updated return:

Original return of income, or
Belated return, or
Revised return

An Updated Return can be filed in the following cases:

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.

Who is not eligible to file ITR-U?

ITR-U cannot be filed in the following cases:

Updated return is already filed
For filing nil return/ loss return
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)

What is the time limit to file 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.

Additional tax Liability when filing ITR-U?

Yes, you will have to pay an additional tax of 25% or 50% on the tax amount, depending on when you file Form ITR-U.