What is Updated Income Tax Return (ITR U)?

Section 139(8A) of the Income Tax Act gives you the opportunity to renew your ITR within 24 months. 24 months are counted from the end of the year in which the first declaration is filed. The ITR-U was introduced to streamline tax compliance by taxpayers without inducing legal action. Read more about the ITR-U below. The Finance Act 2022 introduced the concept of filing an income tax return. An additional tax of 25% or 50% of the tax amount must be paid, depending on when the ITR-U is filed.

Eligibility to file ITR - U

  • Original return of income
  • Belated return
  • Revised return

Examples where an update Return may be submitted

  • Previous Return not filed
  • Choosing the wrong heads of income
  • Paid tax at wrong rate
  • To reduce carried forward losses
  • To reduce the unabsorbed depreciation
  • To reduce the tax credit u/s 115JB/115JC
  • Income did not declare correctly

Who can not file ITR - U?

    • If already filed
    • If the updated return value is null
    • If the update return value is loss
    • If filing an updated return reduces your tax liability compared to the originally filed return
    • Search procedure U/S 132 has been started against you
    • If assessment/reassessment/revision/re-computation is pending or completed
    • etc

Additional tax when filing ITR - U

  1. 12 months from the end of relevant Assessment year – 25% of additional tax + interest
  2. 24 months from the end of relevant Assessment year – 50%  of additional tax + interest

Documents Required for filing ITR - U form

  1. PAN Card
  2. Aadhaar Card
  3. Bank Statement
  4. Bank Details
  5. Proof of investment
  6. Form 16A/ 16B / 16C
  7. Other Documents

Process for filing ITR - U

General information

A1   – PAN
A2   – Name
A3   – Aadhhar Card
A4   – Assessment Year
A5   – Select yes (if you filed the return previously for the assessment year)
A6   – If yes, look at the ITR acknowledgement
A7   – Acknowledgement no /receipt no. and date of filing the original return
A8   – Check the eligibility conditions
A9   – Select the ITR form number.
A10 – You must now select at least one reason for updating the ITR-U
A11 –  If 12 months have elapsed from the end of the year in which you filed the return, select ‘12-24 months option’
A12 – In case the updated return reduces the balance of carried forward loss or unabsorbed depreciation