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ITR U - What is ITR-U & How to File Updated Return under Section 139(8A)

Updated on: 19 Jul, 2024 12:06 PM

The concept of ITR U, the updated return, was introduced in the union budget 2022 to allow individuals to rectify the mistakes they made while filing the ITR or to allow one more chance to file who miss the deadline.

In this article, we will explore ITR-U, explaining what it is, when it is required, and how to file an updated return under Section 139(8A) of the Income Tax Act.

What is an ITR-U or Updated ITR?

ITR-U is a form that allows taxpayers to correct errors or omissions on their ITRs up to two years from the end of the relevant assessment year to update their return.

In the Union Budget 2022, the government introduced the ITR U form for updating income tax returns.

ITR U form is a rescue for those who have not filed their ITR or made inaccurate and false entries while filing their income tax returns.

Section 139(8A) under the Income Tax Act allows you a chance to update your ITR within two years, i.e., 24 months from the end of the relevant assessment year. These two years are calculated from the end of the year in which the original ITR was filed.

For instance, for AY 2023-24, you can file an ITR-U after the end of the assessment year, i.e., 31 March 2024, but within two years from there, i.e., 31 March 2026. File ITR-U.

Regardless of whether the taxpayer has filed an original, belated, or revised ITR or has completely missed filing the ITR in a specific financial year, he/she can file an ITR-U upto 2 years of the relevant assessment year.


Who is Eligible to File Form ITR-U Under Section 139(8A)?

Any taxpayer can file an updated return u/s 139 (8A) whether he has furnished/not furnished an original return, revised return, or belated return in case of any omission, error, or wrong statement in his earlier return of income.

An Updated Return can be filed if:

  • Return previously not filed
  • Income not reported correctly
  • Wrong heads of income chosen
  • Reduction of carried forward loss
  • Reduction of unabsorbed depreciation
  • Reduction of tax credit u/s 115JB/115JC
  • Wrong rate of tax

Eligible for ITR-U? Get CA-assisted ITR U filing for previous years now!


Who is Not Eligible to File Form ITR U u/s 139 (8A)?

An Updated Return under section 139(8A) cannot be filed if:

  • If an updated return is already filed
  • If an updated return is the return of loss
  • If an updated return reduces Income Tax Liability in the return filed earlier
  • If the updated return results in an increase of Refund
  • If a search has been initiated under Section 132
  • If books of Accounts or any other documents are called for by the Income Tax Department under section 132A.
  • If the survey has been conducted under section 133A
  • If any proceeding of assessment, reassessment, re-computation, or revision is pending or completed for that relevant year
  • If the Assessing Officer has information against such person under the Prevention of Money Laundering Act or Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act or Benami Property Transactions Act or Smugglers and Foreign Exchange Manipulators Act and the same has been communicated to the assessee.
  • If the information for the relevant assessment year has been received under an agreement referred to in section 90 or section 90A in respect of such person and the same has been communicated to him prior to the date of furnishing of return under this subsection.
  • Other Notified Persons

What is the Time Limit to File Updated Return?

The time limit to file an updated return u/s 139 (8A) is 24 months from the end of the relevant assessment year. The updated return of FY 22-23 (AY 2023-24) can be filed till 31st March 2026.

For example,

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

Note:- For FY 2021-22 (AY 2022-23), an updated return can be filed by 31 March 2025. File Today.

ITR-U Form Download


Who Should Pay Additional Tax When Filing ITR-U?

Late filing is always associated with penalties. One would need to pay an additional 25% percent of the tax and interest due on the income missed to be reported if the return is filed within one year from the end of the relevant assessment year. The penalty gets enhanced to 50 percent of additional tax and interest due if the return is filed after one year and within two years of the relevant assessment year.

For example:-

Income Earned in Action Penalty Applicable
AY 2022-23 Updated Return filing between April 1, 2023, and March 31, 2024 (12 months from the end of relevant AY) 25% of additional tax + interest ( if applicable) + Late filing Fees
AY 2022-23 Updated Return filing in between April 1, 2024, and March 31, 2025, (24 months from the end of relevant AY) 50% of additional tax + interest ( if applicable) + Late filing Fees

Minimize your late filing fee by filing ITR-U Now. Book an online CA now!


How to File Form ITR-U?

As per the Income tax rules, the updated return (ITR-U) has to be furnished along with an updated version of the applicable ITR form (ITR 1 – 7).

ITR-U seeks the following additional details from the taxpayers:

  • PAN
  • Aadhaar Number
  • Assessment Year
  • Whether return previously filed for this assessment year? (Yes/No)
  • If yes, Whether filed u/s 139(1) Others
  • If applicable, enter form filed, Acknowledgement no. or Receipt No. and Date of filing the original return (DD/MM/YYYY)
  • Are you eligible to file an updated return? i.e., a person is not falling in such circumstances wherein an updated return can’t be filed.
  • Selecting the ITR form for filing an updated return
  • Reasons for updating income. This includes reasons such as returns previously not filed, income not reported correctly, wrong heads of income chosen, etc.
  • Are you filing an updated return within 12 months from the end of the relevant AY or between 12 to 24 months from the end of the relevant AY?
  • Are you filing an updated return to reduce carried forward loss, unabsorbed dep., or tax credit?

Part B – Computation of updated income and tax payable (ITR-U)

  • 1 (A) Head of income under which additional income is being returned as per Updated Return
  • 1 (B) Total income as per last valid return (only in cases where the Income Tax Return has previously been filed)
  • Total income as per Part B-TI
  • The amount payable, if any (To be taken from the ―Amount payable of Part B-TT of the updated ITR)
  • Amount refundable, if any (To be taken from ―Refund‖ of Part B-TTI of the updated ITR
  • The amount payable on the basis of last valid return (only in applicable cases)
  • 6. (i) Refund claimed as per last valid return if any
  • 6. (ii) Total Refund issued as per last valid return, if any (including interest u/s 244A received
  • Fee for default in furnishing return of income u/s 234F
  • Regular Assessment Tax, if any
  • Aggregate liability on additional income
  • Additional income-tax liability on updated income [25% or 50% of (9-7)]
  • Net amount payable (9+10)
  • Tax paid u/s 140B
  • Tax due (11-12)
  • Details of payments of tax on updated return u/s 140B
  • Details of payments of Advance Tax / Self-Assessment Tax / Regular Assessment Tax, credit for which has not been claimed in the earlier return (credit for the same is not to be allowed again under section 140B(2) )
    • Note: Credit for the above is not to be allowed again under section 140B(2)
  • Relief u/s 89, which is not claimed in earlier return [relief for the same is not to be allowed under section 140B(2)]
ITR-U Updated Part A
ITR-U Updated Part B

Want to file ITR-U for previous financial years FY (20-21), FY (21-22), FY (22-23)? Hire an online CA to ensure a smooth ITR-U filing experience. Book an eCA Now!


How to File ITR U Using Tax2win?

Tax2win offers two types of ITR filings:-

DIY (Self-filing)

DIY (Self-filing)- If you have a little bit of knowledge about taxes, entering some basic details will let you file the ITR within 4 minutes. Tax2win DIY platform is AI-integrated, hence it will auto-select the right ITR form for you itself and thus makes filing super-easy for you. The user interface is friendly and easy. Hands-on today to file ITR for FY 2023-24 and e-verify on time.

If you are wondering how to file an ITR with Tax2win, here are some simple steps you need to follow -

Step 1: Either sign in to the tax2win website using your existing credentials or sign up to the portal and create an account. You can do self-filing only in the case of income from salary, business, and capital gains.

tax2win website

Step 2: After logging in, a table consisting of all the possible sources of income opens. You need to select the income sources that you have. Based on your sources of income, Tax2win’s DIY ITR filing system selects the applicable ITR form automatically.

sources of income

Step 3. You need to upload Form 16. In case you don’t have Form 16, you can simply skip the option and proceed further.

Step 4. Select the F.Y. and enter the PAN Details and DOB. (If you don’t have a registered account with the Income Tax Department, you will receive an OTP and a new account will be created.). You can also choose if you want our DIY software to fetch your personal details and get data pre-filled.

enter the PAN Details

Step 5: Enter a few basic details in the next step. Some of it is pre-filled from the Income Tax Department’s database. Remember to cross-check the information available. As shown in the image given below, you have to enter your personal details like name, email ID, date of birth, father’s name, gender, etc.

enter the PAN Details

Step 6: In the next step, you have to provide your address details and employer category. You can refer to the image below to understand this better.

basic details

Step 7. In the next step, you have to fill in your employment details. The standard deduction is applied automatically in the case of salaried employees. As shown in the image below, you have to enter your gross salary/CTC, exempted allowances like HRA, LTA, gratuity, net salary, and standard deduction and professional tax under section 16. Note that if you have uploaded Form 16, your employment data will be pre-filled in the ITR Form. All you have to do is verify the information and proceed to file ITR.

address details and employer category

Step 8: Enter the details of the investment made during the year to calculate the applicable deductions. You have to enter details of investments in PPF, LIC, PF, housing loan, FDR, NSC, tuition fees, premiums paid to the annuity, and other 80C deductions. Also, you can claim deductions like 80D, 80CCD (1B), 80G, etc.

employment details

Step 9: In this step, you are required to enter your bank details. Enter your IFSC code, name of the bank, account number, and Aadhaar details. As per government law, it is mandatory to show all the bank details. You can select one account as the primary account. Remember, you will get a tax refund in your primary bank account.

details of the investment

Step 10: If you have your Form 26AS, simply upload it; otherwise, enter the details manually. Enter your salary details, previously paid taxes like advance tax/self-assessment tax, tax paid on updated return, TDS paid on income except salary, TDS on rental income, and TCS.

bank details

Step 11: Select the return filing type as ITR-U. If you have not filed your ITR for this year, select “not filed.” If you have already filed your ITR for this year, select “under section 139(1) and fill in the details of the ITR filed and click on continue.

upload Form 26AS

Step 12: Based on the information given by you in the previous sections, the software automatically computes your tax liability using both the old and the new regime. You can compare both regimes and select the one that is more beneficial for you.

return filing type

Step 13: Now, you can see your total tax due along with an option to pay your income tax online through the income tax portal. You can also pay your taxes offline using the income tax challan method. Click on continue.

tax liability

Step 14: Now, you are ready to file ITR-U. You can either download the JSON file and upload it to the Income Tax Department or get an eCA to file your ITR-U, if you have any doubts.

tax liability

File ITR Now

The second way through which you can file ITR on Tax2win is:-

Expert-Assisted ITR Filing

Step 1. Click on Hire eCA Now.

Click on Hire eCA Now

Step 2. Select the relevant options from the below steps.

income

Step 3. After selecting all relevant sources of income details, click on ‘hire now’ and hire a professional CA for your help.

hire now
Book Your eCA Now

How to Verify ITR-U?

ITR-U can be verified through -

  • For Non Tax-Audit Cases:
    • Aadhaar OTP
    • An Electronic Verification Code (EVC) is given for tax audit cases.
    • Digital Signature Certificate (DSC) in non-tax audit cases.
  • For Tax Audit Cases:
    • Digital Signature Certificate (DSC)

How to Calculate the Tax Payable for an Updated Return (ITR-U)?

In the case of filing an updated return or ITR U, the tax payable is calculated as the tax due, together with interest and the late filing fee payable, for the delay in filing the return. This will also include the additional tax leviable on filing the updated return (25% or 50% of the tax amount).

ITR U = Tax Payable + Interest +Late-filing fees + Additional Tax

Net Tax Liability = Total Income Tax Liability (as above) – TDS/TCS/Advance Tax/Tax Relief

Have trouble computing your tax liability for updated ITR filing? Contact our tax experts and get end-to-end ITR filing services, right from computation to ITR filing online. Book an online CA now!


Frequently Asked Questions

Q- Can we file ITR for AY 2022-23 now?

Yes, you can file an Updated Return (ITR-U) for the Assessment Year (AY) 2022-23. The Income Tax Department allows taxpayers to file ITR-U within 24 months from the end of the relevant assessment year. This means you can file ITR-U for AY 2022-23 until March 31, 20251.


Q- What is Form ITR-U?

The ITR-U, or Updated Income Tax Return, is a form introduced in the Union Budget 2022, allowing taxpayers to correct errors or omissions in their previous tax filings. It must be filed within two years from the end of the relevant assessment year. This initiative aims to enhance accuracy and compliance in tax submissions, providing taxpayers with the opportunity to rectify mistakes and ensure adherence to tax laws.


Q- Can nil return be filed in ITR-U?

ITR U is not allowed to be filed in the following circumstances:

  • If ITR U to be filed is a nil return, (Total income below 2.50 Lacs)
  • If ITR U is to be filed will lower the tax liability as compared to the originally filed return,
  • If ITR U to be filed is a return of loss,
  • If ITR U is to be filed will result in an increase in refunds,
  • Where proceedings are started by the income tax authorities u/s 132A.,
  • If the survey has been conducted u/s 133A,
  • If search/prosecution proceedings have been initiated,
  • If assessment/reassessment/revision/re-computation is either pending or completed for that relevant year,

Q- What is ITR utility in income tax portal?

ITR utility software helps a taxpayer to file ITR easily. The Income Tax Department releases an updated version of the ITR Utility software every year for online filing of Income Tax Return.


Q- What are the benefits of filing Form ITR-U?

Taxpayers get an additional 24 months to file Income Tax Returns even after the deadline for filing the Original ITR, Belated ITR, and Revised ITR has lapsed or passed.

Taxpayers can report any missed income and pay tax on it, thus reducing the chances of future tax notices and litigations.

Tax Liability and penalty under Updated Return is less than in case of proceedings for undisclosed income or income escaping assessment.


Q- Is there any penalty for ITR-U?

Taxpayers are not subjected to penalties or additional fees when filing an ITR-U. However, under Section 140B of the Income Tax Act, they may be liable for additional tax. If the ITR-U is filed within 12 months from the end of the relevant assessment year, a 25% additional tax on the tax dues applies.


Q- Can you claim a refund by filing the updated return?

No, if the Updated Return results in a decrease in tax liability, increase in a tax refund or claim of loss, the taxpayer cannot file an Updated Return.


Q- What is the due date to file an Updated Return for AY 2023-24?

The due date to file an Updated Return is 24 months from the end of the relevant Assessment Year. Thus, the due date to file an Updated Return for AY 2023-24 is 31st March 2026 (2 years from the end of 31st March 2024)


Q- What is the due date to file an Updated Return for AY 2022-23?

The due date to file an Updated Return is 24 months from the end of the relevant Assessment Year. Thus, the due date to file an Updated Return in Form ITR-U for AY 2022-23 is 31st March 2025 (2 years from the end of 31st March 2023).


Q- Is it possible to file two ITR U for the same financial year?

A taxpayer can file an Updated ITR only once for a Financial Year. Hence, it should be done carefully. Book an online CA for accurate ITR filing.


CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.

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