All About Form “ITR-U” or Updated Return

This article discusses the Filing of ITR Form “ITR-U” or Updated Return. ITR 1 to 7 (as applicable) is to be filed along with the ITR-U for AY 2020-21, AY 21-2022, and subsequent years.

Updated Return (“ITR-U”) can be filed for which Assessment Year?

It can be filed for Assessment Year (A.Y.) 2020-21, AY 21-2022, and subsequent years

Who can file it?

Any Person

If Return is filed u/s 139 (1) or (4) or (5), can we file an updated return or ITR-U?

Yes, ITR-U can be filed if you filed Normal, Belated, or Revised Return Earlier.

Can a file Fresh Return, if no Income Tax Return (“ITR”) was filed earlier?

Yes, you can file it as Fresh Return u/s 139(8A).

What is the Time Limit for Filing this Form?

The Time Limit of Filing the form is within 24 Month From the end of the relevant A. Y.

When I am not eligible to File an Updated Return?

• If it is a Return of a loss
• If it has an effect of decreasing the total tax liability determined on the basis of earlier return filed
• If it results in the refund or increases the refund due on the basis of return filed earlier

What are the various Reasons for updating your Income Tax 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

Additional Income Tax payable at the time of furnishing the updated return shall be equal to (“additional income-tax”, shall include surcharge and cess)

• 25% of the aggregate of tax and interest payable, after the expiry of the time available u/s 139(4) or (5) and before completion of the period of 12 months from the end of the relevant A.Y. or
• 50% of the aggregate of tax and interest payable, after the expiry of 12 months from the end of the relevant A.Y. but before completion of the period of 24 months from the end of the relevant A.Y.

Is Interest u/s 234A/234B/234C applicable?

Yes