3. What is the time Limit for Filing ITR-U?
4. What additional Taxes you are required to pay while filing ITR U?
5. Can an updated return be filed more than once for the same year
6. What are the benefits of filing an updated return under section 139(8A)?
Do you know that if you forgot to file your return or made a mistake in your income tax return or forget to include some important information, you can correct it? Yes, you can! This is where ITR-U, or Updated Income Tax Return, comes into play.
ITR-U is a form provided by the government that allows you to fix errors or add missing details in your previous income tax returns. You can do this within two years from the end of the relevant assessment year. For example, if you filed your income tax return for the year 2022-2023, you have until March 31, 2026, to submit an updated return using the ITR-U form.
This concept of updated returns was introduced in the Union Budget of 2022 to help taxpayers rectify mistakes without facing legal consequences.
If you made errors or omissions in any of your original, belated, or revised income tax returns, you are eligible to file an updated return using ITR-U. This includes situations where you missed the deadline for filing your return, didn't declare your income correctly, chose the wrong category for your income, paid tax at the wrong rate, or need to adjust losses or tax credits.
There are certain scenarios where you cannot file an updated return. For instance, if you've already submitted an updated return, filed a return with zero income or losses, or if your updated return would result in a lower tax liability. Additionally, if you're under investigation by tax authorities or if certain legal proceedings are underway, you're not eligible to file ITR-U.
You have up to 24 months from the end of the relevant assessment year to file ITR-U. This means you must submit your updated return within two years from the end of the year in which you originally filed your return.
When you file ITR-U, you may have to pay additional taxes depending on when you file it. If you file within 12 months from the end of the relevant assessment year, you'll pay 25% of the additional tax amount plus interest and late filing fees. If you file within 24 months, the additional tax increases to 50% of the additional tax amount plus interest and late filing fees.
No, you can't. Once you submit an updated return for a specific year, you can't change it again.
Filing an updated return has advantages. It helps correct any income you forgot to mention earlier, shields you from income tax notices, and reduces the chances of getting into legal trouble.
ITR-U Filed Within |
Additional Tax |
12 months from the end of relevant AY |
25% of additional tax + interest + late filing fee |
24 months from the end of relevant AY |
50% of additional tax + interest + late filing fee |
The Updated Return (ITR-U) mechanism is a significant relief for taxpayers, allowing late filings or corrections post-deadline under section 139(8A). This initiative, introduced in the Union Budget of 2022, underscores the government's commitment to facilitating compliance and rectifying errors without punitive consequences. Stay tax compliant and worry-free by leveraging the ITR-U provision for any corrections or missed filings.
For personalized assistance with ITR filing and ensuring tax compliance, seeking professional guidance is recommended. Stay informed, stay compliant, and navigate the taxation landscape with confidence.
Stay tax compliant to stay worry free. Get in touch with us for ITR filing assistance and to stay compliant with tax regulations.
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