The ITR-U (Updated Income Tax Return) form was introduced by the Indian government in the Union Budget 2022, enabling taxpayers to update previously filed ITRs. This allows corrections for errors or omissions within two years from the end of the relevant assessment year.
What is ITR-U?
The ITR-U form enables taxpayers to amend their income tax returns to correct any errors or omissions or even to submit a missed ITR within two years from the end of the relevant assessment year. For instance, if you missed the revised or belated filing window for AY 2023-24, you could file an ITR-U from April 1, 2024, until March 31, 2026. File your ITR with us.
This amendment option under Section 139(8A) encourages voluntary compliance by allowing updates without legal repercussions.
Who Can File ITR-U under Section 139(8A)?
Anyone who has made an error or omitted income details in any of the following types of returns is eligible to file an updated return:
- Original return of income
- Belated return
- Revised return
Eligible scenarios include:
- Missing both the original and belated return deadlines
- Incorrect income declaration or head of income
- Incorrect tax rate applied
- Reduction of carried forward losses or unabsorbed depreciation
- Adjustments to tax credit under sections 115JB or 115JC
Note: Only one updated return can be submitted per assessment year.
Who is Not Eligible to File ITR-U under Section 139(8A)?
ITR-U cannot be filed in these cases:
| Condition | Details |
|---|---|
| Updated Return Filed | If an updated return has already been submitted for the assessment year. |
| Nil or Loss Return | You cannot file to claim a loss or file a nil return. |
| Enhancing Refund | ITR U cannot be used to claim or increase a refund. |
| Lower Tax Liability | It is not permitted if it results in a lower tax liability. |
| Pending Search or Survey | If there are ongoing proceedings under Section 132 or Section 133A. |
| Seized Assets | If books, documents or assets have been seized under Section 132A. |
| Pending Assessments | Cannot be filed if assessment, reassessment, revision or recomputation is pending or has been completed. |
| No Additional Tax | If total tax liability is covered by TDS or losses, ITR-U cannot be filed. |
Filing Deadlines for ITR-U
The ITR-U form can be filed within 24 months from the end of the relevant assessment year. For example, for Assessment Year (AY) 2022-23, the final date to submit ITR-U is 31st March 2025. Similarly, for AY 2024-25, the last date to file ITR-U is 31st March 2027.
| Financial & Assessment Year | Last date to file ITR-U |
| FY 21-22 (AY 2022-23) | 31st March 2025 |
| FY 22-23 (AY 2023-24) | 31st March 2026 |
| FY 23-24 (AY 2024-25) | 31st March 2027 |
Additional Tax for Filing ITR-U
An additional tax is imposed based on when the ITR-U is filed:
| ITR-U filed within | Additional Tax |
|---|---|
| 12 months from the end of relevant AY | 25% of additional tax (tax + interest ) |
| 24 months from the end of relevant AY | 50% of additional tax (tax + interest) |
How to File Form ITR-U
The ITR-U form comprises two sections: Part A and Part B.
Part A: General Information
- A1: Enter your PAN.
- A2: Provide your name.
- A3: Enter your Aadhaar Card Number.
- A4: Specify the Assessment Year.
- A5: Indicate if you have previously filed a return for this assessment year (select “Yes” if applicable).
- A6: If you answered “Yes” in A5, refer to your ITR acknowledgment to determine whether it was filed under section 139(1) or another section.
- A7: Enter the form number, acknowledgment or receipt number, and the date of filing the original return (in DD/MM/YYYY format), found in the ITR acknowledgment.
- A8: Review the eligibility conditions and choose the appropriate option.
- A9: Select the ITR form number.
- A10: Choose at least one reason for updating the ITR-U (multiple reasons can be selected).
- A11: If more than 12 months have passed since the end of the assessment year, select the ‘12-24 months’ option. Otherwise, select ‘up to 12 months’ option.
- A12: If the updated return impacts carried forward losses or unabsorbed depreciation, specify the assessment year affected and indicate if any revised or updated return was filed previously.
Part B: ATI – Computation of Total Updated Income and Tax Payable
- Enter the additional income amounts for each head of income (detailed breakdown not required).
- Provide the income declared in the last return.
- State the total income, as indicated in Part B-TI of the ITR form (sections 1-7).
- Enter the payable amount from the ‘Amount Payable’ section in Part B-TT of the ITR form.
- State any refundable amount from the ‘Refund’ section in Part B-TT.
- Enter the tax payable amount from the last return.
- If a refund was claimed previously, provide the refund amount or, if received, the refund amount including any interest received on it.
- Enter the late filing fee paid if the last return was submitted late.
- State any regular assessment tax paid in the last return.
- Enter the total liability on the additional income.
- Calculate any additional tax liability on the updated income (25% or 50% of [9-7]).
- State the net tax amount payable (sum of 9 and 10).
- If there is a tax payable due to the updated ITR, make the payment as Self-Assessment Tax and provide the challan details under section 140B.
Verification Methods for ITR-U
ITR-U can be verified using the following methods:
- Aadhaar OTP
- Electronic Verification Code (EVC)
- Digital Signature Certificate (DSC) (mandatory for tax audit cases)
Tax Calculation for Updated Return (ITR-U)
To determine tax payable for ITR-U, use this formula:
- Total Tax Liability = Tax Payable + Interest + Late-filing Fees + Additional Tax
- Net Tax Liability = Total Tax Liability – (TDS/TCS/Advance Tax/Tax Relief)
| S.No. | Particulars | Reference Documents | Amount (in Rs) |
| A | Tax Paid on additional Income as per the modified ITR (from Part B-TTI of the modified ITR) | Modified ITR (submitted with ITR U) | XXXX |
| B | Interest levied on additional income under Section 234A/234B/234C (from Part B-TTI of the modified ITR) | Modified ITR (submitted with ITR U) | XXXX |
| C | Late fee under Section 234F (from Part B-TTI of the modified ITR) | Modified ITR (submitted with ITR U) | XXXX |
| D | Taxes paid or relief from TDS/TCS/Advance Tax/regular assessment tax/relief | – | XXXX |
| E | Total refund issued (including interest) or claimed as per the original return | Original return filed | XXXX |
| F | Aggregate tax liability on additional income | A + B + C + E – D | XXXX |
| G | Additional tax (25% or 50% on F – C) | – | XXXX |
| H | Net amount payable | F+G | XXXX |
Frequently Asked Questions (FAQs)
- What is Form ITR-U?
ITR-U allows taxpayers to amend previously filed returns within 24 months, promoting compliance and reducing litigation.
- Is there a penalty for ITR-U?
No penalty is imposed when ITR-U is filed and an original return has already been submitted. However, a penalty under Section 234F applies if no original return was filed. An additional tax under Section 140B is levied, amounting to 25% or 50% of the tax and interest due, depending on whether ITR-U is filed within 12 or 24 months from the end of the relevant assessment year.
- Can a Nil Return be filed in ITR-U?
No, ITR-U cannot be used for a Nil return.
- Can I claim a refund through ITR-U?
No, ITR-U does not allow for a refund claim or enhancement.
- Can I file ITR-U without tax payable?
No, ITR-U requires an additional tax liability for eligibility.
- What is the deadline for ITR-U for FY 2023-24?
The last date to file ITR-U for FY 2023-24 is 31st March 2027.
- Can I file ITR-U if my total income is below Rs. 5 lakhs and I have claimed a rebate under Section 87A?
Yes, you can file the updated return, but a late filing fee will apply, which must be paid and recorded in the “Taxes Paid under 140B” section.
