updated income tax return
CBDT exempt RBI from Higher TDS deduction under Section 206AB of Income Tax Act, 1961

The deadline for filing updated Income Tax Returns (ITR-U) for the Assessment Year 2021–22 (financial year 2020–21) is March 31. By declaring any extra income or fixing any errors in your previous, amended, or original return, you can update your income tax return using the Updated Income Tax Return or ITR-U form.

Taxpayers who failed to file their returns on time can correct the omission using ITR-U. Errors in the previously filed ITR, such as under- or misreporting of income, can be corrected using ITR-U. A person who was required by tax law to file an ITR but failed to do so by the deadline may also file an ITR-U.

A tax payment is required at the time of submitting ITR-U, and cannot be filed to take the tax refund. The taxpayer is not permitted to file ITR-U if by submitting it one’s tax liability lowers.

Anytime within 24 months of the completion of the applicable assessment year, an ITR-U may be submitted. For the financial year 2023–24, the revised return for AY 2021–22 and AY 2022–23 may be filed. Therefore, the deadline for filing an updated income tax return for the Financial Year 2020–21 (AY 2021-22) is March 31, 2024. The ITR return of FY 2022-23 can be updated till March 31, 2025

A person shall not be eligible to furnish an updated return where —

* A search has been initiated under section 132 or books of account or other documents or any assets are requisitioned in the case of such person; or

* A survey has been conducted under section 133A

* A notice has been issued to the effect that any money, bullion, jewellery or valuable article or thing, seized

No updated return can be furnished by any person for the relevant assessment year, where—

* Any proceeding for assessment or reassessment or recomputation or revision of income under this Act is pending

* Provided also that if any person has sustained a loss in any previous year and has furnished a return of loss in the prescribed form within the time allowed.

Grab the chance before it goes away,
File your updated return today .
Last  date to file updated return for A.Y. 2021 -22 : 31st March 2024

From Income Tax Department
From Income Tax Department

Last minute tax saving tips from income tax experts

Tax experts say that 31st March is the last date to make investments to save taxes for FY 2023-24. One can utilize the remaining time wisely to leverage tax-saving options under sections 80C, 80CCD(1), 80D etc.

For this one needs to “explore avenues such as investing in ELSS, PPF, or purchasing health insurance to optimize your tax savings before the deadline. You can also maximize your tax savings by exploring last-minute deductions such as contributing to retirement accounts, making charitable donations etc. We can look into options like investing in National Pension System (NPS), Sukanya Samriddhi Yojana (SSY) for your daughter’s future. Each provides an opportunity to optimize your tax savings effectively before the deadline. Also, always do compare the tax in the new tax regime and the old regime, and choose accordingly.

You can put money in NSC, PPF and SSS which are basically debt products with pre-declared interest payable on them. If you have not availed exclusive deduction under section 80CCD(1B) yet or you have already exhausted 80C, you should put up to 50,000/- before 31st March to get this exclusive benefit.

It may be noted that deductions under Chapter VI A have continued to be enjoyed by those assessees optiong for the old tax regime for FY2023-24. As the current financial year comes to an end, following last-minute advisory applies to tax payers for saving tax under the old tax regime.

Payments to LIC premium, post office investments, PPF, Sukanya Deposit Scheme etc are eligible for deduction from income upto Rs 150,000 under section 80C. Payments upto Rs 50,000 in NPS are entitled to deduction under section 80CCD. Similarly, payment of mediclaim policy premium upto Rs 25,000 under section 80D is also available for assessees. In case of senior citizens of 60 years and above, the limit for deduction is Rs 50,000.

Apart from the above, section 80TTA/80TTB deduction is available for bank interest up to Rs 10,000/ Rs 50,000 earned upto 31.03.2024, while section 80G deduction relates to claim for charity payments at 50%/100% as notified. The total claim, however, is restricted to 10% of total income for FY2023-24, Khanna adds.

Generally, we talk about tax-saving options to plan the taxes. “It is, however, important to note that interest on tax is also a hidden expense and generally unnoticeable at the time to filing of returns. This interest is applicable when a taxpayer fails to pay adequate advance tax. Hence, before 31st March 2024, the time is right to conduct a high end 360-degree assessment of one’s tax liability and pay sufficient advance tax

For this, one has to gather all of one’s income documents – salary slips, interest certificates, freelancing income proofs, receipts in the bank account, etc; apart from getting a clear picture of the total taxable income and knowing one’s tax liability from online tax calculators or consulting a financial advisor. One also needs to determine the TDS already deducted or the tax already paid.

Thereafter one should pay the deficit advance tax. This would save interest @1% per month from April onwards, adding that individuals should also re-examine whether they have utilised tax exemption limit under various Section like 80C, 80CCD (1B) and 80D, among others. In case, if there is a scope, they may invest even at a fag end of the financial year.

HNIs who are socially inclined may take the opportunity to donate to designated charitable institutions under Section 80G and claim upto 100% deductions before 31st March 2024.

It is to be noted that most banks and financial institutions remain functional on March 31, even if it is a Sunday.

Where not to invest?

Before investing your hard-earned money, you also need to take some precautions and avoid investing in a product just for tax saving.

For instance, if you haven’t yet made full investment for tax planning for the current year, there are a few products you should not touch like life insurance policies, unless you actually need the life cover, advises Jain.

Likewise, you should not put lump sum in ELSS because it is basically an equity product which is very volatile. You should plan to start investing in ELSS from the next year through the SIP mode to avoid large volatility.

How to File Indian Income Tax Updated Return (ITR-U) Form?

What is Income Tax Updated Return (ITR-U)

Updated return is a type of return on income u/s 139(8A) of the Income Tax Act 1961 to be filed using Form ITR-U. It allows taxpayers to:

  • File Return of Income Not Filed Earlier
  • Make Corrections in Disclosure in Income Tax Return
  • Fix or Change the Head of Income
  • Reduce the Carry Forward Loss
  • Reduce Unabsorbed Depreciation
  • Reduce Income Tax Credit and More

Who Should File ITR-U (Income Tax Updated Return) Form?

Any taxpayer can file an updated return whether he has submitted his original/revised/delayed return of income or not.

When did the Provisions Become Effective?

1st April 2022

Deadline for Filing an Income Tax Updated Return

The updated return can be furnished within 24 months from the end of the specific assessment year. For example, for the assessment year 2022-23, an updated return can be filed by 31 March 2025.

Note: The deadline for filing an updated ITR for FY 2020-21(AY 2021-22) is 31st March 2024.

When You Can’t Submit an Updated Return?

In the following circumstances, an updated return cannot be furnished if:

  • The updated return is a return of the loss
  • The updated return is reducing the income tax liability from the return filed earlier
  • The updated return result increases the refund
  • The search has been started under section 132
  • Books of accounts or any other document are called for under section 132A.
  • A survey is done under section 133A
  • Any proceeding of assessment, revaluation, recalculation, or revision is pending or completed in that year.
  • The AO has information against such person under the Prevention of Money Laundering Act or Black Money (Undisclosed Foreign Income and Assets) and Tax Act or Benami Property Transactions Act or Smugglers and Foreign Exchange Manipulation Act and the same have been reported to the assessee.
  • Other Notified Person

How to Calculate Income Tax Updated Return via Simple Process?

Section 140B of the Income Tax Act 1961 provides the procedure to calculate income tax on an updated return.

Payable Tax + Interest + Payble fees for nonfiling of Income Tax (if any) + Payable amount as Additional Tax (For taking benefit of Section 139(8A))= Total Income Tax Liability.

Total Income Tax Liability (from above) – TDS/TCS/Advance Tax/Tax Relief etc = Net Tax Liability u/s 140B.

Short Brief of Additional Tax Liability

To avail the benefit of section 139(8A), the assessee is required to pay additional tax computed as under:

  • 25% of tax, HEC, SC, and interest as calculated above, if an updated return is to be filed within 12 months from the end of the assessment year.
  • 50% of tax, HEC, SC, and interest as calculated above if an updated return is to be filed after 12 but before 24 months.

How to Generate JSON File If Path & Excel Utility Not Found

Via the Income tax portal, people could file an updated tax return with the help of Form 139(8A). But the same could merely take place in the offline mode in which the JSON file requires to get generated through the use of the return preparation tool. To prepare and generate the same JSON file, the IT department furnishes an excel based utility, however, the same shall need a .NET framework for running its macros.

At the time of generation of JSON file through Excel-based utility, a common issue occurs would be that a pop-up message prompted mentioning that “JSON is saved in the path:”, the JSON file might not present. When the ‘NET Framework 3.5’ is disabled then the problem shall get arises.

To solve the problem of not being able to generate the JSON file, there are 2 steps that are needed to be chosen-

1. Enabling the ‘NET Framework 3.5’:

  • Proceed to Control Panel – Programs and Features – Turn Windows Features on or off, or search for “windows features on or off” in the start menu.
  • Find “.NET Framework 3.5 (includes .NET 2.0 and 3.0)” and expand the feature by tapping on the plus symbol.
  • Enable both categories and tap OK.
  • When displayed, select “Let Windows Update files for you” and wait for the procedure to finish.

2. Downloading the .NET Framework 3.5 Service Pack 1 (Full Package):

Steps to File ITR-U (Income Tax Updated Return) Form

Part A: General Information-139(8A)

  • PAN
  • Aadhaar Number
  • Assessment Year
  • Whether return previously filed for this assessment year? (Yes/No)
  • If yes, Whether filed u/s 139(1) Others
  • If applicable, enter form filed, Acknowledgement no. or Receipt No. and Date of filing the original return (DD/MM/YYYY)
  • Are you eligible for filing an updated return as per the conditions laid out in the first, second and third provisos to section 139(8A)? (Yes/No)
  • Please choose the ITR form for updating your income (ITRs 1-7 to be selected from the drop-down and filled as per the details made available by the e-filing utility – see instruction)
  • Are you filing the updated return during the period up to 12 months from the end of the relevant assessment year between 12 to 24 months from the end of the relevant assessment year
  • (A12) (a) Are you filing the updated return to reduce carried forward loss or unabsorbed depreciation or tax credit? Yes/No
  • (A12) (b) If yes, please specify the assessment years were carried forward loss or unabsorbed depreciation or tax credit is being affected because of this updated return

Part B: ATI Computation Of Total Updated Income And Tax Payable

  • 1 (A) Head of income under which additional income is being returned as per Updated Return
  • 1 (B) Total income as per last valid return (only in cases where the Income Tax Return has previously been filed)
  • Total income as per Part B-TI
  • The amount payable, if any (To be taken from the ―Amount payable of Part B-TT of the updated ITR)
  • Amount refundable, if any (To be taken from ―Refund‖ of Part B-TTI of the updated ITR
  • The amount payable on the basis of last valid return (only in applicable cases)
  • 6. (i) Refund claimed as per last valid return if any (Please see instruction)
  • 6. (ii) Total Refund issued as per last valid return, if any (including interest u/s 244A received
  • Fee for default in furnishing return of income u/s 234F
  • Regular Assessment Tax, if any
  • Aggregate liability on additional income
  • Additional income-tax liability on updated income [25% or 50% of (9-7)]
  • Net amount payable (9+10)
  • Tax paid u/s 140B
  • Tax due (11-12)

Tax Payments (Only as per Updated Return)

  • Details of payments of tax on updated return u/s 140B
  • Details of payments of Advance Tax / Self-Assessment Tax / Regular Assessment Tax, credit for which has not been claimed in the earlier return (credit for the same is not to be allowed again under section 140B(2) )
    • Note: Credit for the above is not to be allowed again under section 140B(2)
  • . Relief u/s 89 which is not claimed in earlier return [relief for the same is not to be allowed under section 140B(2)]

Verification

I, son/ daughter solemnly declare that to the best of my knowledge and
belief, the information is given in the return is correct and complete and is in accordance with the provisions of the income-tax Act, 1961. I further declare that I am making this return in my capacity as _(drop-down tobe provided in e-filing utility) and I am also competent to make this return and verify it. I am holding a permanent account number. (Please see instruction).

Date: Signature: