The concept of ITR-U also known as Updated return was introduced in Union Budget of 2022. CBDT vide Notification No. 48/2022 dated 29.04.2022 notified Rule 12AC for furnishing ITR-U as per the provision of section 139(8A) of Income Tax Act,1961.
ITR-U acts as a rescuer for those who have not filed ITR with the due dates or furnished inaccurate details in their ITR. Section 139(8A) of Income Tax Act,1961 allows you to rectify errors or omissions and update your previous ITR. Assessee can file this updated return not later than two years from the end of the relevant assessment year.
For instance:
Assessment Year Last Date of Updated ITR Filing
AY (2021-22) 31 March 2024
AY (2022-23) 31 March 2025
AY (2023-24) 31 March 2026
Eligibility
All persons (Individual, HUF, Firms/LLP, Companies, AOP, BOI etc) are eligible to file ITR-U, if the person has made an error or omission in any of the following returns:
- Original return or,
- Revised return or,
- Belated return.
Ineligibility to filed ITR-U u/s 139(8A)
- One ITR-U has already been filed, since an You can file only one updated return for each financial year.
- For claiming or enhancing the refund under Income Tax Law.
- For filing NIL return or enhanced Loss return.
- There is a reduction in tax liability on filing Updated Return.
- Department has initiated search proceedings u/s 132 against You.
- A survey is conducted u/s 132A
- The Income Tax Authorities have seized books, documents or assets
- Assessment/reassessment/revision or re-computation of the original/Revised return is pending or completed.
Tax on updated return
The procedure to calculate income tax on an updated return is provided under section 140B of Income Tax Act 1961. You should consider the following points while calculating the amount of aggregate tax on which the percentage of additional tax is applied.
- Any amount of tax deducted or collected at source on the additional income.
- Amount of relief of tax which was not claimed in the original return.
- Refund claimed/issued in the original return along with the interest.
- Interest u/s 234A,234Band 234C.
Additional tax required to be paid while filing ITR-U u/s 139(8A)
You will have to pay additional tax of 25% or 50% of the tax amount depending upon when you file the ITR-U, irrespective of the fact whether you earlier filed ITR or not.
ITR-U FILED | ADDITIONAL TAX |
With 12 months from the end of relevant A.Y.
| 25% of Aggregate Tax |
Within 24 months from the end of relevant A.Y. | 50% of Aggregate Tax along with interest and late filing fees. |
Statement showing calculation of amount of Net Amount Payable in ITR-U (Updated Return)
S.No. | Particulars | Amount |
A | Total Tax Payable (on additional income under updated return) | XXX |
B | Interest on tax (If any, u/s 234A/234B/234C) | XXX |
C | Late fees u/s 234F | XXX |
D | TDS/TCS/Advance tax (not utilized in original return) | XXX |
E | Tax relief, if any (not claimed in the original return) | XXX |
F | Total refund issued (including interest) in original return, if any | XXX |
G | Aggregate tax liability on additional income(A+B+C-D-E+F) | XXX |
H | Additional tax 25% or 50% on (G-C) | XXX |
I | Net Amount Payable | XXX |
