6 Summary Points for easy understanding of newly issued ITR U for Updated Return

6 Summary Points for easy understanding of newly issued ITR U for Updated Return

Updated Return: Notified on 29^th April,2022 vide Notification No. 48/2022

1. Updated Return can be filed by any person starting from Assessment year 2020-21 i.e. FY 2019-20.
2. As per Sec 139(8A) Updated return can be filed till 24 months from the end of the relevant assessment year. (Thus, for AY 2020-21 it can be filed till 31st March 2023.)
3. ITR 1 to 7 (as applicable) is to be filed along with the ITR-U
4. The following may be the reasons for filing an Updated Return:
   • 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
   • Others
5. However, updated return cannot be filed under following circumstances:
   • If updated return is a loss
   • Updated return will decrease the total tax liability declared earlier.
   • Updated return results in refund or increases the refund filed earlier.
   • Search has been initiated under Sec 132/ books of accounts or assets are requisitioned u/s 132A/ survey has been conducted u/s 133A.
   • Proceedings for assessment/reassessment/re-computation/revision of income is pending or has been completed for that AY.
   • Any prosecution proceedings pending
   • Information received under an agreement referred to u/s 90 or 90A in respect of person and same has been communicated to him.
6. As per Sec 140B if an assessee opts to file updated return, an additional tax is required to be paid.

Particulars	Additional Tax
If return is filed after the expiry of time available under Sec 139(4) or Sec 139(5) and before 12 months from the end of the relevant AY	25% of the aggregate of   tax and interest
If return is filed after 12 months but before 24 months from the end of the relevant AY	50% of aggregate of   tax and interest

Sections to be referred for detailed reading: Sec 139(8A) and Sec 140B