ITR U: What is ITR-U Form and How to File ITR-U

ITR-U, or Updated Income Tax Return, provides a means to rectify errors or omissions and bring your previous Income Tax Return (ITR) up to date. It can be filed within two years after the conclusion of the relevant assessment year. The government introduced the conception of updated returns in the Union Budget 2022.

In this article, we will look at, What is ITR-U form, how to file an updated ITR, and who is eligible and not eligible for filing an ITR-U.

Latest update

For the FY 2023-24, taxpayers can file their updated returns for AY 2021-22 and 2022-23.  However, the deadline for revising your FY 2020-21 (AY 2021-22) return is March 31, 2024.

What is ITR-U?

ITR- U or updated Income tax Return, is a form that allows taxpayers to modernize their ITRs by correcting errors or deletions within two years from the end of the applicable assessment year.

For example, if you submitted an ITR for AY 2023-24 but missed the opportunity to file a revised return within the designated timeframe, you can utilize ITR-U to make necessary amendments. This can be done after the conclusion of the assessment year, i.e., by March 31, 2024, and within two years thereafter. Please take notice that ITR-U filing for the fiscal year 2023-24 began on January 1, 2024.

Section 139(8A) of the Income Tax Act permits you to modernise your ITR within two years. Two years will be computed starting from the end of the year in which the initial return was submitted. ITR-U was created to encourage people to comply with tax laws while avoiding judicial action.

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

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

• Original return of income, or
• Delinquent return, or
• Updated return You can file a revised Return in the following situations.
• Didn’t file the return. Missed return filing deadline and the delinquent return deadline
• Income isn’t declared rightly
• Chose the wrong head of income
• An incorrect tax rate was paid
• Reducing the unabsorbed deprecation, the carried forward loss, and the tax credit under sections 115JB and 115JC.
• Only one amended return each assessment year (AY) may be filed by a taxpayer.

Who is not eligible to file ITR-U under section 139(8A)?

 ITR- U cannot be filed in the following cases;

• The updated return has already been filed.
• For filing nil return/ loss return.
• For claiming/ enhancing the refund amount.
• In situations where the updated return leads to reduced tax liability.
• In the event of search proceedings initiated against you under section 132.
• A survey is conducted under section 133A.
• When books, documents, or assets are seized or requisitioned by Income-tax authorities under section 132A.
• If assessment/ reassessment/ revision/re-computation is pending or completed.
• If there’s no fresh tax outgo (when the tax liability is adjusted with TDS credit/ losses and you don’t have any fresh tax liability, you cannot file an updated ITR).

What is ITR-U filing time limit?

The time limit for filing ITR-U is 24 months from the end of the applicable assessment year. Updates to the Financial Year (FY 22–23) Return (AY 2023–24) are accepted through March 31, 2026.

How can I file Form ITR-U?

By income tax regulations, an updated copy of the relevant ITR form (ITR-1 to ITR-7) must be submitted with the ITR–U.

There are two parts to the form; i.e, Part A & B.

Guidelines for filling out the form include:

Part A (General information)

• Permanent Account Number (PAN)
• Name
• Aadhar Card Number
• Assessment Year
• Select yes if you filed the return preliminarily for the assessment year.
• Look at the ITR acknowledgment to figure out if it was filed under section 139(1) or others.

Next, enter the form no., acknowledgment no. or receipt no, and the original return’s filing date (dd/mm/yyyy). All of these specifics are included in the ITR acknowledgment.

• Check the eligibility conditions mentioned above and select the applicable option.
• Select the ITR form number.
• You are now required to choose at least one justification for simplifying the ITR-U (more than one choice is permitted).
• Choose the “12–24 months option” if 12 months have passed since the end of the year in which you submitted the return. Choose the “up to 12 months option” in a different way.
• Enter the assessment year in which they were impacted by the amended return. If it lowers the balance of carried forward loss or unabsorbed deprecation. Mention whether a prior amended or revised return was submitted as well.

Part B (ATI Computation of Total Updated Income and Tax outstanding)

A) Enter the fresh income figures in each head of Income. A detailed break-up of each head isn’t needed.

B) Enter the income reported on the most recent return.

• Enter the Total Income amount. You can find this from ‘Part B- TI’ of the ITR Forms filled by you.
• The amount outstanding, if any (you can take it from the – ‘Amount outstanding’ section of Part B- TT of the ITR form).
• Determining the amount refundable, if applicable, from the ‘Refund’ section of Part B-TT of the ITR form.
• Enter the tax outstanding amount as per the last return.

i) Still, if a refund was claimed in the last return, also enter the claim amount.

ii) If you have entered the refund, enter the amount of refund entered, including the interest amount on the similar refund.

• Enter the late filing fee if the previous return was filed after the deadline.
• On the last return, include the normal assessment tax that was paid.
• Aggregate liability on the fresh income.
• New tax obligations on revised income.
  • The amount of unpaid net taxes.
  • Prior-paid tax under section 140B: If an updated ITR indicates that there is unpaid tax, that amount must be paid as self-assessment tax.
• Enter the challan details and make the payment.

How to compute the tax payable for ITR-U?

Your total income tax liability when filing ITR-U can be calculated as follows:

• Total Income Tax Liability = Tax Payable + Additional Tax + Interest +Late-filing fees.
• Net Tax Liability = Total Income Tax Liability (as above) – Tax Deducted at Source (TDS)/ Tax Collection at Source (TCS)/ Advance Tax/ Tax Relief.

Conclusion

In conclusion, Updated Income Tax Return, offers taxpayers the opportunity to rectify errors or omissions in their previous income tax returns within a specified timeframe. This form, introduced by the government in the Union Budget 2022, allows individuals to modernize their tax filings, ensuring compliance with tax laws while avoiding potential legal actions.

By filing ITR-U, taxpayers can correct mistakes in original, delinquent, or updated returns, thus ensuring accurate reporting of income and tax liabilities. Understanding what is ITR-U entails, and how to navigate its requirements is essential for individuals seeking to maintain tax compliance and financial integrity.

You can directly reach out to 24efiling to get your income tax return filed on time. Our experts guide you in each step of the ITR filing process.

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