What is an updated return (ITR-U)?

The income tax department aims to include a majority of India’s population under the ITR filing umbrella. To achieve this, they are collecting information from various sources to understand and track the transactions made by individuals. These transactions are then disclosed in forms like the Annual Information Statement (AIS) and 26AS. However, by the time users realize they were supposed to file an ITR based on the information available in these forms or discover mistakes in their filings, the due date may have passed.

To address this issue, the Finance Minister introduced the updated return or ITR-U in the 2022 budget. With ITR-U, individuals who made mistakes while filing or missed the deadline can file an updated return.

What is ITR-U?

Any person who has submitted an original, revised, or belated return, or has not filed an ITR at all, can file ITR-U up to 24 months from the end of the relevant assessment year (AY).

For example, if you want to file an updated return on 10th Feb 2023 for AY 2020-21, you are eligible to do so. However, if you want to file the same on 10th May 2023, it is not possible because two years from the end of the relevant AY have already expired on 31st March 2023.

Who can file an updated return?

Any taxpayer, including individuals, HUFs, companies, etc., and non-residents can file an updated return.

When can you not file an updated return?

An updated return cannot be filed in the following cases:

  • When the taxpayer’s total tax liability is less than initially declared.
  • When there is no additional tax liability or the taxable income is below the exemption limit.
  • To report/reduce losses.
  • If the ITR results in a refund or increases the refund amount.

There are more such cases; you can read about them here!

For example, if a person is entitled to claim a refund of ₹25,000 and has not filed an ITR at all, they are not eligible to claim it by filing an updated ITR.

How many times can you file an updated ITR?

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

Is there a penalty?

Yes, filing an updated return comes with penalties. You will have to bear a late filing fee of up to ₹5,000 and interest of 1% per month on the tax liability.

Moreover, if the ITR is filed up to one year from the end of the relevant AY, then you are supposed to pay 25% of the aggregate of tax and interest payable. 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 as a penalty.

What is the benefit of filing ITR-U?

  • You get an additional 24 months to file an ITR even after the due date for belated ITR and revised ITR have lapsed.
  • You can report any missed-out income and pay tax on it, reducing the chances of future tax notices and litigations.

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

2 Likes

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 ₹10k, 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.

1 Like

Is it possible to file ITR-U for updating schedule FA in ITR-2?

If I am paying income tax for the first time, is it mandatory that I have to pay taxes for my previous years also or I can start afresh?

Hey @afaaq,

You can pay the taxes for the current financial year which is FY 23-24, and file the ITR once the FY ends, i.e. after March 2024.

Moreover, if you have any tax liability for the previous FYs, you can pay the taxes and file an updated return.

Here’s a detailed read on ITR-U.

Hope this helps!