THE LAST OPTION IS UPDATED RETURN

What is ITR-U?

ITR-U or Updated Income Tax Return, is a form that allows taxpayers to update their ITRs by correcting errors or omissions or allows a taxpayer to file ITR if they have not filed ITR within the due date and also missed to file the belated return, within two years from the end of the relevant assessment year. Section 139(8A) under the Income Tax Act allows you a chance to update your ITR within two years. Two years will be calculated from the end of the year in which the original return was filed.

Who can File ITR-U under Section 139(8A)?

Any person who has made an error or omitted certain income details in any of the following returns is eligible to file an updated return:

• Original return of income, or
• Belated return, or
• Revised return

An Updated Return can be filed in the following cases:

• Did not file the return.
• Income is not declared correctly
• Chose wrong head of income
• Paid tax at the wrong rate
• To reduce the carried forward loss
• To reduce the unabsorbed depreciation
• To reduce the tax credit u/s 115JB/115JC

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

ITR-U cannot be filed in the following cases:

• Updated return is already filed
• For filing nil return/loss return
• For claiming/enhancing the refund amount.
• When updated return results in lower tax liability
• Search proceeding u/s 132 has been initiated against you
• A survey is conducted u/s 133A
• Books, documents or assets are seized or called for by the Income Tax authorities u/s 132A.
• If assessment/reassessment/revision/re-computation is pending or completed.
• If there is no additional tax outgo (when the tax liability is adjusted with TDS credit/ losses and you do not have any additional tax liability, you cannot file an Updated ITR)

What is the Time Limit to File ITR-U ?

The time limit for filing ITR-U is 24 months from the end of the relevant assessment year. You should note that for the AY 2022-23, the last date to file ITR-U is 31st March 2025. However, for the return that your file for AY2024-25, the last date to file ITR-U is 31st March 2027.

Should you Pay Additional Tax when Filing ITR-U?

Yes, you will have to pay an additional tax of 25% or 50% on the tax amount, depending on when you file the ITR-U.

ITR-U filed within	Additional Tax
12 months from the end of relevant AY	25% of additional tax (tax + interest )
24 months from the end of relevant AY	50% of additional tax (tax + interest)

Important Note:

You should note that for the AY 2022-23, the last date to file ITR-U is 31st March 2025.

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