The ITR-U, or Income Tax Return-Updated, allows correction of errors or omissions in previous ITRs and can be filed within two years from the end of the relevant assessment year. Introduced in the Union Budget 2022, the ITR-U cannot reduce taxes due, claim refunds, or increase losses. Belated or revised ITRs can’t be filed after December 31st of the assessment year, but the ITR-U can be filed starting January 1st. Last date to file ITR-U for AY 2022-23 is 31.03.2025.

Q.1 What is ITR-U?

ITR-U, or the Income Tax Return-Updated, is a provision introduced under Section 139(8A) of the Income Tax Act, 1961. It allows taxpayers to update their previously filed income tax returns for omissions, incorrect claims, incorrect income reporting, or missed deductions. This form helps correct errors discovered after the initial submission.

Q.2 What could be the cases where updated return ITR – U can be filed?

Ans – An updated return can be filed in following cases:

• Failed to file the return and missed both the original and belated filing deadlines.
• Income was not reported accurately.
• Selected the incorrect head of income.
• Paid tax at an incorrect rate.
• To reduce the carried forward loss.
• To reduce the unabsorbed depreciation.
• To reduce the tax credit under sections 115JB/115JC.

Q.3 Who is not eligible to file ITR – U under Section 139(8A)?

Ans – You cannot file an ITR-U in the following situations:

• An updated return has already been filed.
• Filing a nil return or loss return.
• Claiming or increasing a refund amount.
• When the updated return results in lower tax liability.
• If a search proceeding under Section 132 has been initiated against you.
• If a survey has been conducted under Section 133A.
• If books, documents, or assets have been seized or requested by the Income Tax authorities under Section 132A.
• If assessment, reassessment, revision, or re-computation is pending or completed.
• If there is no additional tax liability (when tax liability is adjusted with TDS credit or losses and there is no additional tax to be paid).

Q.4 What is the Timit Limit to file ITR – U?

Ans – The time limit for filing ITR-U is 24 months from the end of the relevant assessment year. For AY 2022-23, the last date is 31st March 2025, and for AY 2024-25, it is 31st March 2027, as shown in the table for the previous four years.

Q.5 Is there a need to pay additional tax when filing ITR – U?

Ans- 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.

Q.6 I filed my ITR within the due date specified under Section 139(1) of the Income Tax Act, 1961, and reported a loss that was carried forward to the next financial year. However, I later discovered it was actually a profit. Can I file an updated return under Section 139(8A) to correct this?

Ans – Yes, you can file an updated return in this scenario.

You can always visit our website www.akcoindia.com/blog for reading such important information. And if you feel you need any assistance then you may just mail us at contact@akcoindia.com.

You may find our other blogs below:

Who should file an Income Tax Return (ITR)?: Click here
Old Tax Regime vs New Tax Regime: Click here
Key Highlights of Union Budget 2024: Click here

Source Info: https://incometax.gov.in/