What is an updated return (ITR-U)?

The Government of India is throwing too much information toward taxpayers from various sources, for instance, AIS, TIS, or Form 26AS. By the time taxpayer comes to know that something is left to be reported mistakenly or intentionally, the due date may pass. Later the taxpayer is concerned that what to do next! From the point of view of giving some additional time to the taxpayers at large in filing the return, in Budget 2022-23, FM announced the filing of an updated ITR.

So, basically, you would get a substantial extra time limit for filing an ITR or correcting your mistake, above the revised and belated return, which is called ITR-U.

Purpose of the ITR U u/s 139(8A)?

To motivate the taxpayer toward the desired objective of voluntary tax compliance, rather than ITD sending notices for reporting the tax liability, the govt. wants to ensure additional revenue realization and facilitate compliance at the taxpayer’s end.

What is ITR U?

Any person who has submitted an Original, a Revised, or a Belated return or has not filed ITR at all may file an ITR-U up to 24 months from the end of the relevant assessment year.

Suppose you want to file an updated return on 10th Feb 2023 for AY 2020-21, then yes, you are eligible for it. But if you want to file the same on 10th May 2023, then, it is not possible, because, here, two years from the end of the relevant assessment year have already expired as the last date is 31st march 2023, to file an updated ITR for AY 2020-21.

Who can file an updated return? Any taxpayer like individual, HUF, company, etc. including non-residents.

When an updated return can’t be filed?

In any case where the taxpayer’s total tax liability ends up being less than what was initially declared. When there is no additional tax liability or the taxable income is below the exemption limit.

To report/ reduce losses and if the ITR is resulting in a refund or increasing the refund, etc.

Read more about cases where taxpayers cannot file an Updated ITR.

For example- If a person is entitled to claim 25000/- of refund and has not filed an ITR at all. so, after the expiry of the due date as the taxpayer is claiming the refund is not eligible to file an updated ITR.

How many times an assessee may file an updated ITR?

You can file an updated ITR only once for a particular assessment year.

Should tax payment be made in advance or after filing ITR-U?

The ITR should be accompanied by proof of payment of tax, which means - first you have to make the tax payment of interest or additional tax then only you will be allowed to submit your ITR-U.

How much is the additional Income Tax Payable?

If the ITR is filed upto one year from the end of the relevant assessment year then the law says you are supposed to pay 25% of the aggregate of tax and interest payable and if it is filed up to two years (after the expiry of 12 months & before the completion of 24 months)then you must pay 50% of the aggregate of tax and interest payable.

What is the benefit of filing ITR-U?

You will probably save yourself from levying any kind of penalty and from initiation of any kind of prosecution pertaining to short payment of tax liability.

Here’s a detailed guide on ITR-U : Updated Income Tax Return

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I have filed original return with 9 Lakhs as income, but my form 16 shows 7.5 Lakhs which is correct (form 16). I have failed to revise my return within 31/12/2022 and my original return is processed with demand due ( difference between TDS in original return and TDS in form 16).
As I am not eligible for ITR-U ( because of reduction of tax liability) what is the solution and how do I deal with the demand due.

Hi @Sagar_SS,

Thanks for connecting on Quicko Tax QnA.
Your queries seem to be more related to personalized tax Filing.

You can book a MEET where a dedicated tax expert can connect with you over a video call, understand your queries, and suggest you the best possible solutions.

Hope this helps.

A individual it person income less than rs:5 lacs f.y.19-20,20-21,21-22 ITR-U returns filed allowed.

Hi @Sundaraiah_Kollipara

ITR U can be filed for FY 2019-20 31 March 2023. For FY 2020-21, ITR U can be filed till 31 March 2024 and for FY 2021-22 ITR U can be filed till 31 March 2025.

Read more about the due dates of filing ITR U.

Mam may you pls guide about the following:

My friend wanted to file itr u for ay 2020-21 as he had not filed itr for this previously and he downloaded the excel utility after 31 March 2023 and after paying penalty of 10 k he was able to generate the XML file which needs to b uploaded on income tax portal but unfortunately that shows error while uploading because deadline was over…may you pls be kind enough to guide how to get this issue resolved …

Hi @Umeed

As the due date has passed for ITR U, AY 2020-21, you would not be able to file your ITR.

For the penalty which you have paid of â‚ą10k, you can connect to your regional AO (assessing officer) and request to change it to another assessment year to adjust the amount of penalty.

In case you have not filed ITR for AY 2021-22, the window is still open to file ITR U, till 31st March 2024.

Hi,

I have not filed my ITR for AY 2022-2023. If I file my tax under ITR-U updated return, am I eligible for the refund and if the penalty for late filing under 234F gets adjusted in my refund amount, do I still need to pay the late fees?

Hi @keswar_Gopi

If you file an ITR U, a refund cannot be claimed.
ITR U can only be filed after paying the late filing fee u/s 234F.

You can read about ITR-U Updated Return under Section 139(8A) - Learn by Quicko for a better understanding.

Hope this helps.

Are the individual people (who filed itr-1) who got notice under 133(6) for ay 2022-23 are also eligible for filing itr-u ??

Hi @venki_kasula

Notice u/s 133(6) is issued when the AO needs more information that is relevant for any proceedings under the Income Tax Act.

If you’ve received this notice, you can just reply to the notice with the relevant information asked for and not file an ITR U.

I missed filing ITR in 2022. I had made loss during 2021-22. Hence, I want to file that missed ITR so I can take advantage of loss and carry forward it. Is it possible?

Hi @rushab

Since you had a loss, and you did not report them while filing your return for that FY, you will not be able to carry forward the loss.

However, now you can file an updated return (ITR U) for FY 2021-22 in order to be a compliant taxpayer.

If ITR-1 form was used in previous year and can ITR-2 form be used while submitting updated return? If not, what is the option? as there are foreign investments that needs to be intimated in previous year… which was missed as ITR-1 don’t have that section.

Hi @mahesh

Yes, you can file an updated return for the same.

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