Under Budget 2022, Finance Minister announced that taxpayers now have the option to correct their income tax return by filing an Updated Income Tax Return (ITR-U). Thus, if there are any omissions or errors in the ITR filed earlier or if the taxpayer has missed out on filing or revising the ITR up to the due date, then they can still file an Updated ITR. The finance minister introduced Section 139(8A) of the Income Tax Act in the Finance Bill 2022.
Further, CBDT issued a notification on 29th April 2022 to notify the form for filing Form ITR-U i.e. Updated Income Tax Return under Section 139(8A) of the Income Tax Act. Therefore from AY 2020-21 onwards, the taxpayer can file an updated return of Income in Form ITR-U along with the applicable ITR Form from ITR-1 to ITR-7.
- What is Section 139(8A) of the Income Tax Act? – Updated Return
- Form ITR-U Updated Return
- What is the Due Date for filing an Updated Return i.e. ITR-U?
- Penalty on Filing ITR U – Pay Additional Tax under Section 140B of the Income Tax Act
- Summary – Tax Liability and Additional Tax u/s 140B
- Computation of Tax Payable with Updated Return
- Difference between Updated ITR u/s 139(8A) and Revised ITR u/s 139(5)?
- FAQs
What is Section 139(8A) of the Income Tax Act? – Updated Return
As per Section 139(8A) of the Income Tax Act, a taxpayer who has filed an Original ITR under Section 139(1), Revised ITR under Section 139(5), Belated ITR under Section 139(4), or not filed ITR at all can file ITR U i.e. Updated ITR under Section 139(8A) upto 24 months from the end of the relevant assessment year.
The taxpayer cannot file an Updated ITR in the following cases:
- To report a loss
- The updated return reduces the total tax liability declared earlier
- The updated return results in a refund or increases the refund claimed earlier
- If a search or survey has been initiated against the taxpayer, books of accounts or assets have been confiscated by the tax authority or there are any pending proceedings or prosecutions against the taxpayer.
- If your taxable income is below INR 2,50,000 (i.e. Below the basic exemption limit).
- If your additional tax liability is NIL.
Thus, the taxpayer can file an Updated Return to report an income that they had not reported in the ITR filed earlier and is ready to pay additional tax on it. Further, the taxpayer can file an Updated ITR only once. This return cannot be revised.
Form ITR-U Updated Return
What is the Due Date for filing an Updated Return i.e. ITR-U?
A taxpayer can file an Updated ITR under Section 139(8A) of the Income Tax Act within 24 months from the end of the relevant assessment year. The CBDT in its notification specifies that the taxpayers can file an Updated ITR from AY 2020-21.
It is important to note that the taxpayer can file Updated ITR u/s 139(8A) only once the time limit for filing Belated ITR u/s 139(4) or Revised ITR u/s 139(5) has lapsed.
Example: For AY 2022-23 the due date to file a belated return has already lapsed (i.e. 31st December 2022). So, from 1st January 2023 onwards ITR U can be filed for this AY, and the last date to file the same is 31st March 2025.
| Due date to file Belated/ Revised Return | 31/12/2022 |
| Due date to file Updated Return | 31/03/2025 |
| Due date to file Belated/ Revised Return | 31/03/2022 |
| Due date to file Updated Return | 31/03/2024 |
| Due date to file Belated/ Revised Return | 31/03/2021 |
| Due date to file Updated Return | 31/03/2023 |
Penalty on Filing ITR U – Pay Additional Tax under Section 140B of the Income Tax Act
The taxpayer filing an Updated Return must also submit proof of payment of tax and penalty as per Section 140B of the Income Tax Act. ITR U can not be filled without payment of additional taxes.
Case 1: Not filed ITR earlier
If the taxpayer has not filed Original ITR under Section 139(1), Revised ITR under Section 139(5), or Belated ITR under Section 139(4), then they must pay the following:
- Tax Dues with interest under Section 234A, 234B, 234C
- Late fee under Section 234F for the delay in filing of ITR
- Additional Tax
- If a taxpayer files an ITR after the expiry of the time limit for a revised or belated ITR but before the completion of 12 months from the end of the relevant assessment year then they must pay an additional tax of 25% of the aggregate amount of tax and interest
- If the taxpayer files ITR after the expiry of 12 months from the end of the relevant assessment year but before completion of 24 months from the end of the relevant assessment year then they must pay an additional tax of 50% of the aggregate amount of tax and interest
However, such taxpayers can claim credit for Advance Tax, TDS, TCS, and Relief under Sections 89, 90, 90A, 91 115JAA, or 115JD.
Case 2: Has filed ITR earlier
If the taxpayer has filed Original ITR under Section 139(1), Revised ITR under Section 139(5), or Belated ITR under Section 139(4), then they must pay the following tax:
- Tax on additional income along with interest after reducing interest already paid earlier.
- Additional Tax
- If a taxpayer files an ITR after the expiry of the time limit for a revised or belated ITR but before the completion of 12 months from the end of the relevant assessment year then they must pay an additional tax of 25% of the aggregate amount of tax and interest
- If the taxpayer files ITR after the expiry of 12 months from the end of the relevant assessment year but before completion of 24 months from the end of the relevant assessment year then they must pay an additional tax of 50% of the aggregate amount of tax and interest
However, such taxpayers can claim credit for any taxes paid earlier.
Summary – Tax Liability and Additional Tax u/s 140B
| When is the Updated Return filed? | If ITR has been filed earlier | If ITR has not been filed earlier |
| In the first year after the end of the relevant AY (ITR-U filed after the expiry of the time limit for revised or belated ITR but before completion of 12 months from the end of relevant AY) |
Tax Payable on Additional Income ADD: Interest on Tax Payable ADD: Additional Tax at 25% of Tax Payable + Interest |
Tax Payable on Total income after reducing tax credits Add: Interest on Tax Payable Add: Late Fee u/s 234F ADD: Additional Tax at 25% of Tax Payable + Interest |
| In the second year after the end of the relevant AY (ITR-U filed after the expiry of 12 months from the end of the relevant assessment year but before the completion of 24 months from the end of the relevant AY) |
Tax Payable on Additional Income ADD: Interest on Additional Income ADD: Additional Tax at 50% of Tax Payable + Interest |
Tax Payable on Total income after reducing tax credits Add: Interest on Total Income Add: Late Fee u/s 234F ADD: Additional Tax at 50% of Tax Payable + Interest |
Computation of Tax Payable with Updated Return
| Particulars | Amount | |
| Total Tax on Income | XXXX | |
| Less: | Advance Tax | (XXXX) |
| Less: | TDS (Tax Deducted at Source) | (XXXX) |
| Less: | TCS (Tax Collected at Source) | (XXXX) |
| Less: | Self Assessment Tax | (XXXX) |
| Less: | Relief u/s 89/90/90A/91 | (XXXX) |
| Less: | Tax Credit u/s 115JAA/115JD | (XXXX) |
| Basic Tax Payable | XXXX | |
| Add: | Interest u/s 234A, 234B, 234C | XXXX |
| Tax Payable | XXXX | |
| Add: | Additional Tax (25% or 50%) on Tax Payable | XXXX |
| Total Tax Payable | XXXX |
Note: Late Fee under Section 234F must be paid if ITR under Section 139(1) is not filed earlier. An additional tax rate is not applied to fees under section 234F.
Difference between Updated ITR u/s 139(8A) and Revised ITR u/s 139(5)?
- A taxpayer can file an Updated ITR even if an original or belated ITR has not been filed. However, the taxpayer cannot file a Revised ITR if an original or belated ITR has not been filed.
- The taxpayer need not pay any penalty for filing a Revised ITR. However, the taxpayer must pay a penalty in form of an Additional Tax of 25% to 50% as per Section 140B for filing an Updated ITR.
- Updated ITR can be filed only if there is an additional tax liability and not if there is a reduction in tax liability or an increase in the refund or claiming a loss. Revised ITR can be filed for multiple reasons such as claiming a loss, increasing refund, reduction or increase in tax liability, etc.
- The taxpayer can file a Revised Return multiple times while an Updated ITR can only be filled once.
FAQs
1) Taxpayer gets an additional time of 24 months to file Income Tax Return even after the due date of filing Belated ITR and Revised ITR have lapsed.
2) Taxpayers can report any missed out income and pay tax on it thus reducing the chances of future tax notices and litigations
3) Tax Liability and penalty under Updated Return is less than in case of proceedings for undisclosed income or income escaping assessment
As per Section 139(8A), any taxpayer can file an Updated Return to report any additional income and pay relevant tax on it. The taxpayer can file an Updated Return even if they have not filed an Original, Revised, or Belated ITR. Taxpayers must file an Updated Return in Form ITR-U within 24 months from the end of the relevant Assessment Year.
No, If the Updated Return results in claiming a refund or an increase in the refund amount then you are not eligible to file ITR U.
No, If your total tax liability is being adjusted with TDS credit and you do not have any additional tax payable then you can’t file ITR U.
Hi @Sagar_SS,
Thanks for connecting on Quicko Tax QnA.
Your queries seem to be more related to personalized tax Filing.
You can book a MEET where a dedicated tax expert can connect with you over a video call, understand your queries, and suggest you the best possible solutions.
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A individual it person income less than rs:5 lacs f.y.19-20,20-21,21-22 ITR-U returns filed allowed.
Hi @Sundaraiah_Kollipara
ITR U can be filed for FY 2019-20 31 March 2023. For FY 2020-21, ITR U can be filed till 31 March 2024 and for FY 2021-22 ITR U can be filed till 31 March 2025.
Read more about the due dates of filing ITR U.
Hi @Umeed
As the due date has passed for ITR U, AY 2020-21, you would not be able to file your ITR.
For the penalty which you have paid of ₹10k, you can connect to your regional AO (assessing officer) and request to change it to another assessment year to adjust the amount of penalty.
In case you have not filed ITR for AY 2021-22, the window is still open to file ITR U, till 31st March 2024.
Hi @keswar_Gopi
If you file an ITR U, a refund cannot be claimed.
ITR U can only be filed after paying the late filing fee u/s 234F.
You can read about ITR-U Updated Return under Section 139(8A) - Learn by Quicko for a better understanding.
Hope this helps.
Hi @venki_kasula
Notice u/s 133(6) is issued when the AO needs more information that is relevant for any proceedings under the Income Tax Act.
If you’ve received this notice, you can just reply to the notice with the relevant information asked for and not file an ITR U.
Hi @rushab
Since you had a loss, and you did not report them while filing your return for that FY, you will not be able to carry forward the loss.
However, now you can file an updated return (ITR U) for FY 2021-22 in order to be a compliant taxpayer.
Hi @mahesh
Yes, you can file an updated return for the same.
If I am paying income tax for the first time, is it mandatory that I have to pay taxes for my previous years also or I can start afresh?
Hey @afaaq,
You can pay the taxes for the current financial year which is FY 23-24, and file the ITR once the FY ends, i.e. after March 2024.
Moreover, if you have any tax liability for the previous FYs, you can pay the taxes and file an updated return.
Here’s a detailed read on ITR-U.
Hope this helps!