Analysis of ITR-U Return


Analysis of ITR-U Return

During Budget 2022, Nirmala Sitharaman announced that taxpayers may now file Updated Income Tax returns (ITR-U). The Finance Bill 2022 introduced subsection 8A to section 139 of the Income Tax Act, which allows taxpayers to file an Updated ITR if their earlier ITR contains omissions or errors.

What is ITR-U?

  • The Central Board of Direct Taxes (CBDT) has reported a new Rule 12AC and a new Form ITR-U that would be needed to be furnished including the separate ITR, to furnish an updated return.
  • In the form ITR-U, the taxpayer is required to show the amount of the other income beneath the mentioned income heads where the other tax is needed to get filed.
  • No detailed income breakup is required to be shown such as in the case of filing regular ITR forms. The taxpayer should mention the exact cause for filing the updated return in ITR-U.
  • Moreover the same would be needed to specify the information of the challan for the other tax filed for the updated return.

Who has to furnish ITR-U (Income Tax Updated Return) Form?

Any individual must be qualified to update the return for the FY 2019-20 and the next assessment years according to the related provisions of the IT act could furnish the updated return through Form ITR-U.

Only one updated return for each assessment year can be filed by an assessee.

What is the last date mentioned for filing the updated return that is ITR-U?

Under Section 139(8A) of the Income Tax Act, an assessee could furnish an updated income tax return within 24 months from the finish of the related assessment year.

The circulation of the notice of CBDT articulated that the assessee could file an updated Income Tax return from AY 2020-21.

From the date 31st March 2023, the assessee could furnish an updated ITR within 24 months for FY 2021-22 i.e AY 2022-23.

Hence 31st March 2025 will be the last date for filing the ITR-U for AY 2022-23. There is only one chance provided to the assessee for filing the updated ITR u/s 139(8A) once the time limit for filing Original ITR u/s 139(1), Revised ITR u/s 139(5) or Belated ITR u/s 139(4) has expired.

Indeed the act would not permit the assessee to furnish the updated return when there would be no other tax outgo. Thus if the total tax liability would get diminished the losses to be managed to the income, refund, or rise in the refund amount would be there, and the assessee could not file.

What is the procedure to file ITR-U?

Part A: General Information-139(8A)

According to section Section 139(8A) of the Income Tax Act, an assessee who would furnish the original Income tax return beneath section 139(1), amended Income tax return beneath section 139(5), late ITR under Section 139(4) or not furnished ITR could file ITR-U i.e. Updated ITR under Section 139(8A) within 24 months from the finish of the pertinent assessment year.

For the below-mentioned cases, the assessee would not furnish an updated income tax return:

  • Reporting losses
  • Through the updated returns the total tax liability shown before get diminished.
  • An updated return will be directed to a refund or rise in the refund claimed before. Form of ITR-U Updated Return

Penalty on Filing Updated Return, Pay Additional Tax beneath Section 140B of the Income Tax Act

The assessee furnishing the updated return should be required to submit proof of the tax payment and the penalty according to section 140B of the income tax act.

Case 1: No ITR filing before

If the assessee would not furnish the Original ITR beneath Section 139(1), Revised ITR under Section 139(5), or Belated ITR under Section 139(4), he/she should furnish the below items:

  • Tax Dues with interest beneath Section 234A, 234B, 234C
  • A late fee beneath Section 234F for the late ITR filing

But these assessees could avail of the credit towards the Advance Tax, TDS, TCS, and Relief under Section 89, 90, 90A, 91 115JAA or 115JD.

Case 2: Would furnish ITR before

If the assessee would furnish the original ITR beneath section 139(1), amended ITR beneath Section 139(5), or Belated ITR beneath Section 139(4), he/she will need to pay the tax:

The tax upon the other income engaging the interest after diminishing the interest already furnished before.



Don't forget to share this article :-

Stay Updated With Our Blogs!

Explore more of our blogs to have better clarity and understanding
of the latest corporate & business updates.

Why People Choose Our Services ?

Free Legal Advice

We provide free of cost consultation and legal advice to our clients.

Tech Driven Platform

All our services are online no need you to travel from your place to get our services.

Grow your business

Experts Team

We are a team of more than 15+ professionals with 11 years of experience.

Transparent pricing

There are no hidden & extra charges* other than the quote/invoice we provide.

100 % Client Satisfaction

We aim that all our customers are fully satisfied with our services.

On-Time Delivery

We value your time and we promise all our services are delivered on time.

Why Trust legal Suvidha?

People Who loved our services and what they feel.

In this Journey of the past 10+ years, we had gained the trust of many startups, businesses, and professionals in India and stand with a 4.9/5 rating in google reviews.

Rajesh Srivastava
Rajesh Srivastava
Startup CEO
Read More
Great services and expertise. Highly recommended, Quick work and provided good support for the entire process. Made things very easier for us and I got my first ever Trademark for my product in just no time. I recommend their services to all the Startups for a hassle-free registration and other services. Again Thank You So Much Team Legal Suvidha... Good work...
Read More
Excellent service and has been very timely in response. They are very patient too and guided us with the right steps even though we approached them with very few days left before the deadline. I highly recommend them to other startups who need legal advice and do all the paperwork at the year-end. And we would approach them for all our future requirements as well.
Krish Mundarath
Krish Mundarath
Read More
We highly recommend them. Best in class services. Thank you for helping me through the process and for prompt replies. All the Best in your Endeavors. We highly recommend them. Best in class services. Thank you for helping me through the process and for prompt replies. All the Best in your Endeavors. I will surely consider them for future work.
Inamul Hashmi
Inamul Hashmi
Read More
Legal Suvidha filed my GST, Income Tax Returns for my business Happy by their service. They are Excellent, cost effective, efficient, co-operative & Genuine service providers keep up the good work in the future. Thank you for shaping my business in the right direction. I would suggest others to take up their services they are better than other competitions present in the market.

Our Partnerships & Collaborations

Contact us and grow your business

Legal Suvidha App

Now all Professional Services in a Single Click !

Now get all the services required for your business in a single app.

Subscribe to our newsletter & grow your business

Subscribe To Our Newsletter .

Sign up to receive email updates on new product announcements, special promotions, sales & more.