All about ITR-U

ITR-U is the Form used for updating your income tax return. The government introduced the concept of updated returns in the Union Budget 2022.

Who can file ITR-U?
Any person who has made an error or omitted certain income details in any of the following returns can file an updated return:

Original return of income, or
Belated return, or
Revised return
An Updated Return can be filed in the following cases:

Did not file the return. Missed return filing deadline and the belated return deadline
Income is not declared correctly
Chose wrong head of income
Paid tax at the wrong rate
To reduce the carried forward loss
To reduce the unabsorbed depreciation
To reduce the tax credit u/s 115JB/115JC
A taxpayer could file only one updated return for each assessment year(AY).

Who is not eligible to file ITR-U?

ITR-U cannot be filed in the following cases:

Updated return is already filed
For filing nil return/ loss return
For claiming/enhancing the refund amount.
When updated return results in lower tax liability
Search proceeding u/s 132 has been initiated against you
A survey is conducted u/s 133A
Books, documents or assets are seized or called for by the Income Tax authorities u/s 132A.
If assessment/reassessment/revision/re-computation is pending or completed.
If there is no additional tax outgo (when the tax liability is adjusted with TDS credit/ losses and you do not have any additional tax liability, you cannot file an Updated ITR)

What is the time limit to file ITR-U?

The time limit for filing ITR-U is 24 months from the end of the relevant assessment year.
ITR-U is applicable from 1st April 2022. So during the current financial year 2022-23, you can file ITR-U for AY 2020-21 and AY 2021-22.
E.g., The Return of FY19-20 can be updated till 31st March 2023.

Should you pay additional tax when filing ITR-U?
Yes, you will have to pay an additional tax of 25% or 50% on the tax amount, depending on when you file the ITR-U.

ITR-U filed within
12 months from the end of relevant AY -25% of additional tax + interest
24 months from the end of relevant AY -50% of additional tax + interest

Who can file ITR-U and who cannot
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