The government introduced the Income Tax Return – Updated, or ITR-U, form to help those who have not filed their income tax returns or have entered their information incorrectly. With the help of this form, taxpayers can fix mistakes or omissions in their ITRs within two years of the conclusion of the applicable assessment year, acting as a sort of safety net. It offers a vital chance for people to revise their income tax forms, guaranteeing correctness and adherence to tax laws. In the end, the ITR-U form helps to create a more accurate and dependable tax reporting system by enabling taxpayers to amend and alter their financial data.

Section-139-8A

The Income Tax Act’s Section 139(8A) gives you the opportunity to amend your ITR two years after the conclusion of the applicable assessment year, within 24 months.

Taxpayers can repair any inaccuracies or revisions in their first return by utilizing Section 139(8A)’s provisions, and they can do so without worrying about suffering legal repercussions for providing false information.

Who is Eligible to File Form ITR-U

Any taxpayer is eligible to file ITR-U under Section 139 (8A) who have furnished or not furnished an original, revised, or belated return. An Updated Return can be filed in the following cases:

1. Omission or Error Correction: Intended for addressing any omission, error, or incorrect statement in the earlier filed return of income.

2. Not Filed Previously: Allows Filing for those who have not submitted a return previously.

3. Income Reporting Correction: Permits correction if income was not reported accurately in the earlier return.

4. Heads of Income Correction: Provides the option to rectify the selection of wrong heads of income.

5. Loss Adjustment: Facilitates the reduction of carried forward loss.

6. Depreciation Adjustment: Allows for the reduction of unabsorbed depreciation.

7. Tax Credit Adjustment: Permits the correction or reduction of tax credits under Section 115JB/115JC.

8. Correcting Tax Rate: Enables adjustment if the wrong rate of tax was applied in the initial filing.

ITR-U Filing Deadline

For the assessment year 2021-22, taxpayers have until 31 March 2024 to file an updated return using ITR-U if they have if they have omitted or incorrectly reported income.

Who is ineligible to File ITR-U

Conditions for Filing an Updated Return:

1. If the updated return represents a return of loss.

2. If the updated return reduces the Income Tax Liability compared to the previously filed return.

3. If the updated return leads to an increase in the refund amount.

4. If a search has been initiated under section 132.

5. If books of accounts or any other documents are requisitioned under section 132A.

6. If a survey has been conducted under section 133A.

7. If any proceeding of assessment, reassessment, re-computation, or revision is pending or completed for the relevant year.

8. If the Assessing Officer has information against the individual under the Prevention of Money Laundering Act, Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act, Benami Property Transactions Act, or Smugglers and Foreign Exchange Manipulators Act, and the same has been communicated to the assessee.

9. If information for the relevant assessment year has been received under an agreement referred to in section 90 or section 90A in respect of such person, and the same has been communicated to him before the date of furnishing the return under this subsection.

10. Other Notified Persons.

Guide to Filing Form ITR-U

1. Enter your PAN, name, address, email ID, mobile number, and date of birth in Part A – Personal Information.

2. Enter your Aadhaar number and link it with your PAN if not already done.

3. Select your status (individual/HUF/firm/company) and residential status (resident/non-resident) in Part B – Status.

4. Select your original/belated/revised ITR form number (ITR 1 – 7) and enter your acknowledgement number and date in Part C – Original/Belated/Revised Return Details.

5. Select the reason for filing the updated return from the given options in Part D – Reason for Filing Updated Return.

6. Provide the details of additional earnings in each head of income. A detailed break-up of each head is optional.

7. Enter the income declared per the original/belated/revised return and the updated income as per the updated return in Part E – Computation of Income and Tax Liability.

8. Share the total income. You may find this from ‘Part B-TI’ of the ITR form (1-7) submitted by you.

9. Enter the tax payable as per the original/belated/revised and updated returns. The difference between the two is the additional tax payable.

10. Enter the details of tax deducted at source (TDS), tax collected at source (TCS), advance tax, and self-assessment tax paid in Part F – Details of Taxes Paid.

11. Enter the details of your bank accounts at any time during the previous year in Part G – Bank Account Details.

12. Enter your verification details and sign the Part H – Verification declaration.

13. Attach the updated version of the ITR form (1-7) along with Form ITR-U and submit it online on the Income Tax portal.

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How is an Updated Return verified?

• Electronic Verification Code (EVC), is given for non-tax audit cases.
• Digital Signature Certificate (DSC) in tax audit cases.

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