Updated Income Tax Return (ITR- U)
Updated Income Tax Return (ITR- U)

ITR- U updated Return was introduced in Finance Act 2022, and It is applicable from 1st April 2022.

Who can file Updated Return ITR -U :- This return was introduced in Union Budget 2022, which gives the tax payers a chance to Update their return  or File a new return upto 2 years from the end of relevant Assesment year.

For Eg– An Assesee whose due date to file return of Income is 31st July 2022, fails to file the return within the due date, and also fails to furnish his return of income u/s 139(4)[Belated Return] ie 31st December 2022  and 139(5)[ Revised return]  ie 31st December 2022 , can file updated return within 24 months from the end of relevant Assesment year ie 31st March 2025 u/s 139(8A).

In what cases updated return can be filed :-

  • An Assessee who missed return filing deadline and also belated return deadline.
  • When the assesee under reported his return  of Income
  • Chosen wrong heads of Income
  • To reduce carried forward losses
  • To reduce Unabsorbed Depreciation
  • To reduce Tax credit of MAT/ AMT u/s 115JB/115JC
  • Others

In What cases updated return cannot be filed :-

  • Updated return is already filed
  • Updated return is for filing Return of Loss
  • If Updated return results in increase in refund
  • If filing updated return results in lower tax liability when conpared to liability in the original return filed.
  • If search has been initiated u/s 132
  • A survey has been conducted u/s 133A
  • If assessment/ reassessment/ revision/ re-computation is pending or completed.
  • If assessing officer has information against such person under prevention of money laundering act or black money (undisclosed foreign income and asset) and imposition of tax act or benami property transactions act or smugglers and foreign exchange manipulators act and the same has been communicated to the assessee.
  • If any prosection proceedings u/c XXII has been initiated for relevant assesment year of such person, prior to date of filing return u/s 139(8A)
  • Other notified person.

There are two parts to the form- Part A &B. Follow the below-mentioned instructions for filling up the form:

Part A: General information

A1 PAN

A2 Name

A3 Aadhhar Card Number

A4 Assessment Year

A5 Select yes if you filed the return previously for the assessment year.

A6 If yes, look at the ITR acknowledgement (“Filed u/s”) to figure out if it was filed u/s 139(1) or others

A7 Next, enter the form no., acknowledgement no. or receipt no. and date of filing the original return (DD/MM/YYYY). You will find all these details in the ITR acknowledgement.

A8 Check the eligibility conditions mentioned above and select the appropriate option.

A9 Select the ITR form number.

A10 You must now select at least one reason for updating the ITR-U. (multiple selections are allowed)

A11 If 12 months have elapsed from the end of the year in which you filed the return, select ‘12-24 months option’. Else select ‘up to 12 months option’.

A12 In case the updated return reduces the balance of carried forward loss or unabsorbed depreciation, enter the assessment year in which they were affected because of the updated return. Also, mention if a revised or updated return was filed earlier.

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

A) Enter the additional income figures in each head of Income. A detailed break-up of each head is not required. B) Enter the income declared as per the last return

Enter the Total Income amount. You can find this from ‘Part B-TI’ of the ITR form (1-7) filled by you.

The amount payable, if any (You can take it from the – ‘Amount payable’ section of Part B-TT of the ITR form)

Amount refundable, if any (You can take it from the – ‘Refund’ section of Part B-TT of the ITR form)

Enter the tax payable amount as per the last return.

i) However, if a refund was claimed in the last return, then enter the claim amount ii) If you have received the refund, enter the amount of refund received, including the interest amount on such refund.

If the last return was filed late, enter the fee paid for late filing.

Enter the regular assessment tax paid in the last return

Aggregate liability on the additional income

Additional tax liability on updated income [25% or 50% of (9-7)]

Net tax amount payable (9+10)

Tax already paid u/s 140B:  If updated ITR results in a tax payable amount, the same must be paid as a Self-Assessment Tax. Make the payment and enter the challan details.

Part A & B

Payment of Additional Tax:-

If ITR U filedAdditional Tax to be paid
Within 12 months from the end of relevant assesment year25% of Additional tax+ Interest
Within 24 months from the end of the relevant assesment year50% of Additional tax + Interest

Computation of Tax payable in an Updated return:

ParticularsAmt
Income as per Updated returnXX
Tax on Total IncomeXX
less: TDS/ TCSXX
Less: Advance Tax paidXX
Basic Tax PayableXX
Add: Interest u/s 234 A,B,CXX
Add: Fees u/s 234 F(for late filing of return)XX
Tax PayableXX
Add: Additional Tax ( 25% or 50 %)XX
Total Tax PayableXX

So, finally it can be concluded that the updated return can be filed  only when there is additional outgo of  tax after adjusting with TDS credit and losses.