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Form ITR-U for filing Updated Return - IndiaFilings

Last updated: July 31st, 2024 10:09 AM

ITR U - Updated ITR

ITR-U, or Updated Income Tax Return, is a form that enables taxpayers to correct any errors or omissions in their previously filed Income Tax Returns (ITRs) for up to two years from the end of the relevant assessment year. This provision, outlined in Section 139(8A) of the Income Tax Act, applies regardless of whether the taxpayer initially filed an original, belated, or revised ITR or failed to file at all. For instance, for the Assessment Year 2023-24, taxpayers can file an ITR-U anytime after March 31, 2024, but before March 31, 2026. Need help with your ITR-U filing? Let IndiaFilings guide you through the process smoothly and efficiently. [shortcode_102]

Updated Return

The Finance Act, 2022, introduced the concept of furnishing income tax returns, i.e., ‘Updated Return’, for offering additional income to tax subject to payment of additional income tax. For this purpose, section 139(8A) is inserted in the Income Tax Act to provide for furnishing an Updated Return of Income in the prescribed form and manner and containing prescribed particulars. The CBDT has now notified Rule 12AC and new Form ITR-U for filing of such updated return of income vide the Income-tax (Eleventh Amendment) Rules, 2022.

Key Features and Guidelines for Filing ITR-U

Here are the key points to know about ITR-U:

Purpose: ITR-U was introduced to allow taxpayers to voluntarily update income returns for past years to correct omissions or errors. This form helps include missed income and correct previously filed returns.
Eligibility Window: Taxpayers can file ITR-U for any of the past two assessment years, starting from the end of the relevant assessment year. This provides a broad opportunity to rectify previously filed returns.
One-Time Submission: ITR-U can be filed only once for an assessment year. After submission, no further changes can be made for that year under this provision.
Disclosure of Additional Income: The form enables taxpayers to fully disclose any additional income that wasn't originally reported, helping to avoid potential liabilities such as penalties and interest.
Types of Corrections: Corrections can include changes in income details, tax credits, deductions, or declarations.
Payment of Tax: If the updated return results in additional tax due, it must be paid along with any applicable interest to ensure no further discrepancies.
No Refunds: ITR-U cannot be used to claim refunds. It is primarily for reporting additional income or correcting filing errors.
Applicable Form: The specific form for updating returns is ITR-U. This form is structured to guide taxpayers through declaring updates or corrections.
Proof of Compliance: Filing ITR-U can be seen as a proactive compliance measure, potentially favorable in the event of tax scrutiny, as it shows the taxpayer's commitment to maintaining accurate and updated tax records.
Digital Accessibility: Like all other tax forms, ITR-U is available for e-filing, making the process of updating income tax returns easily accessible for taxpayers.

Eligibility Criteria for Filing ITR-U Under Section 139(8A)

ITR-U is designed for taxpayers who need to amend errors or omissions in their previously filed income tax returns. Section 139(8A) of the Income Tax Act permits the filing of an updated return in several scenarios:

Original Return: If initially filed with errors or omissions.
Belated Return: Filed within the allowable period but contains mistakes.
Revised Return: Previously corrected but still contains inaccuracies.

Additional situations that qualify for filing ITR-U include:

Missed Deadlines: For taxpayers who have not filed an original or belated return.
Incorrect Declarations: Errors in declaring income or incorrect categorization of income types.
Incorrect Tax Payments: Payment of taxes at incorrect rates.
Financial Adjustments: Necessary adjustments involving losses carried forward, unabsorbed depreciation, or tax credits under sections 115JB/115JC.

Taxpayers can file only one updated return for each assessment year, ensuring that all corrections are consolidated into a single submission.

Restrictions on Filing ITR U Under Section 139(8A)

While ITR-U provides an opportunity to update past tax returns, there are specific conditions under which this option cannot be utilized:

Previous Updated Return Filed: If a taxpayer has already filed an updated return under Section 139(8A) for a particular assessment year, they cannot file another updated return for the same year.
Nil or Loss Returns: Updated returns cannot be filed if the purpose is to declare nil income or a loss.
No Additional Tax Liability: If the updated return does not lead to any additional tax liability, including cases where adjustments in TDS credits or loss adjustments fully offset the additional tax payable, filing ITR-U is not allowed.
Tax Authority Interventions: Taxpayers are barred from filing ITR-U if there are ongoing or completed actions by tax authorities, such as surveys under Section 133A or searches and seizures under Sections 132 and 132A.
Ongoing Assessments: ITR U is not permissible if there is any ongoing assessment, reassessment, revision, or re-computation already in process or completed.
Higher Refund Claims: ITR U cannot be used to claim a higher refund than previously filed returns.

Components of ITR-U

ITR-U, designed for updating previously filed income tax returns, comprises several essential elements. Here’s a breakdown of what to expect in the form:

Basic Information:

Includes the taxpayer's PAN (Permanent Account Number), name, address, and other personal details.
Specifies the Assessment Year for which the return is being updated.
Provides the original acknowledgement number and the date of the original filing.

Details of Income:

Detailed report of all income sources, including salary, house property, business or profession, capital gains, etc.
Includes adjustments for previously undeclared income or corrections to previously declared income.

Deductions and Taxable Income:

Updates to deductions previously claimed under Sections 80C, 80D, etc., of the Income Tax Act.
Recalculation of net taxable income considering the revised deductions.

Tax Computation:

Breakdown of the tax payable based on the revised taxable income.
Details any additional tax payable, including applicable interest.

Tax Payments:

This section provides information on taxes already paid, such as advance tax, self-assessment tax, and TDS (Tax Deducted at Source).
If additional tax has been paid, details of such payments should be included along with the revised return.

Details of Tax Credits

Any adjustments to previously claimed tax credits or amendments to tax credit claims.

Other Information:

Details related to foreign assets, foreign income, and required disclosures under the Black Money Act.
List of all bank accounts held by the taxpayer.

Declaration and Verification:

A declaration by the taxpayer confirming the accuracy of the information provided.
A section for the taxpayer’s signature to verify the contents of the return.

Download Form ITR-U

For taxpayers looking to update their returns, Form ITR-U is available for download. You can access the form from the official Income Tax Department website. We have attached here for ready reference: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2022/05/ITR_U.pdf" title="ITR U"]

Time Limit to File ITR-U

The time limit to file an updated ITR (ITR-U) is 24 months from the end of the assessment year related to the financial year for which the return needs updating. This extended period allows individuals and entities ample time to review their previously filed returns and make any necessary corrections or additions. This 24-month window is particularly beneficial for rectifying mistakes or reporting undeclared income that was omitted in the original return. Refer to the below table for easy understanding:

Financial Year (FY)	Assessment Year (AY)	Last Date for ITR Filing
2023-2024	2024-2025	31-Jul-25
2024-2025	2025-2026	31-Jul-26
2025-2026	2026-2027	31-Jul-27
2026-2027	2027-2028	31-Jul-28

Also, read our article to learn more about Can I file ITR for the last 3 years now? When filing an updated income tax return (ITR-U) and declaring previously unreported income or making corrections, taxpayers must pay not only the additional tax due but also a surcharge on that tax. This surcharge varies based on the timing of the filing relative to the end of the relevant assessment year (AY). Here's a breakdown of how the surcharge is applied:

Additional Tax Payment on ITR-U

The surcharge serves as an additional financial incentive for taxpayers to update their returns as early as possible within the allowed 24-month window.

Timing of Filing ITR-U	Surcharge Rate
Within 12 months from the end of the AY	25% of Additional Tax (Tax + Interest)
Between 12 and 24 months from the end of the AY	50% of Additional Tax (Tax + Interest)

Procedure to Filing Form ITR U

Filing Form ITR-U is a detailed process that allows taxpayers to amend their previously filed income tax returns. Here's a more comprehensive step-by-step guide to help you through the process of filing this form effectively:

Access the e-Filing Portal:

Visit the official website for income tax e-filing in India. Use your PAN (Permanent Account Number) as your user ID to log in. If you do not have an account, you must register first by providing your PAN, full name, and date of birth and completing the registration process.

Enter the e-Filing Dashboard:

Once logged in, you will be directed to the dashboard. Here, click on the 'e-File' menu and select 'File Income Tax Return' from the dropdown options.

Select the Assessment Year:

You will be prompted to choose the relevant Assessment Year (A.Y.) for which the updated return is to be filed. Make sure you select the correct A.Y. to avoid any discrepancies.

Initiate the Filing Process:

Choose 'Updated Return under Section 139(8A)' when asked for the type of filing. This option is specific to those updating their previously filed returns.

Determine Your Taxpayer Status:

Select your status from the dropdown menu, such as Individual, Hindu Undivided Family (HUF), Company, etc. This classification helps in applying the specific rules and limitations relevant to different categories of taxpayers.

Input Correct Income Details:

Accurately provide details of all income sources, including salary, house property income, profits from business or profession, capital gains, and other sources. If you're revising previously unreported or under-reported income, ensure to align these figures with supporting documents like Form-16, bank statements, investment proofs, etc.

Review and Adjust Deductions:

Update any relevant deductions claimed under various sections of the Income Tax Act (such as 80C, 80D, etc.) that were previously missed or incorrectly reported. Calculate the net taxable income after incorporating these changes.

Calculate Your Tax Liability:

Utilize the built-in tax calculation tool on the portal to compute your tax liability based on the revised income. This will include calculation of any additional tax payable, including interest or penalties due to the amendments.

Settle Any Tax Dues:

If there is additional tax due as per your updated return, make sure to pay this before submitting the ITR-U. The portal provides facilities for online payment of taxes, which can be done using net banking, debit card, or other payment methods.

Preview, Confirm, and Submit:

Before submitting, preview the filled ITR-U form to verify all the information for accuracy and completeness. Once satisfied, submit the form.

Verify Your Submission:

After submission, verify your return through options such as Aadhaar OTP, EVC generated through a bank account, or by sending a physically signed ITR-V to the CPC in Bengaluru.

Receive Acknowledgment:

Upon successful verification, you will receive an acknowledgement from the IT Department. This acknowledgement should be stored safely for future reference.

Manner of Verification of ITR-U

A company or a political party or a person who is subject to compulsory tax audit u/s 44AB is required to furnish an Updated Return of Income under DSC.
In other cases, DSC is not mandatory and an updated return can be furnished with EVC or voluntarily with DSC.

By following these detailed steps, you can ensure that your ITR-U filing is accurate and compliant with the legal requirements,

Cases when an updated return of income cannot be furnished

The form ITR-U cannot be filed for the following reasons:

Where a search has been initiated under section 132 or requisition is made under section 132A of the Income-tax Act
Where a survey has been conducted u/s 133A other than survey u/s 133(2A) of Income-tax Act
Where any proceeding for assessment or reassessment or recomputation or revision of income is pending under the Income-tax Act
Where the Assessing Officer has information for the relevant assessment year: Blank Money law, Benami law, etc.
Where any information is received under an agreement referred to in sections 90 or 90A of the Income-tax Act
Where any prosecution proceedings are initiated under the Income-tax Act:

Conclusion

In conclusion, if you've delayed filing your ITR or need to amend any details on a previously filed return, ITR-U offers a valuable solution. This form allows you to update your return within two years from the end of the relevant assessment year, helping you correct errors and avoid penalties. If you need assistance with filing your ITR-U or making any changes to your filed ITR, IndiaFilings can help. Visit IndiaFilings today and let our experts guide you through the process efficiently and stress-free. [shortcode_102]