Sparsh Wadhwa
Quick Summary
How to file an updated return (ITR-U) The updated return, or ITR-U, was put forward in the Union budget of 2022 to provide taxpayers with an additional chance to submit if they missed the deadline for filing their tax returns late or to correct any mistakes they made. In order to make the tax fil
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FAQ :
An Updated Return (ITR-U) is a form introduced in the Union Budget 2022 that allows taxpayers to submit a revised tax return if they missed the original deadline or need to correct errors in a previously filed return.
You are eligible to file an ITR-U if you had previously unfiled return income, did not properly document income, mistakenly selected income heads, reduced carried forward loss, reduced unused depreciation, reduced tax credit, or used an incorrect tax rate.
You cannot file an ITR-U if a modified return has already been submitted, if the modified return results in a loss, reduces the tax owed on an earlier return, increases a refund, or if certain legal actions like a search under Section 132 have been initiated.
An ITR-U can be filed within 24 months after the end of the relevant assessment year. For example, for AY 2021-22, the last date is 31 March 2024.
If filed within one year of the assessment year's end, there's a 25% penalty on the tax liability and interest. If filed between one and two years, the penalty increases to 50% of the additional tax and interest owed.
ITR-U can be verified using an Electronic Verification Code (EVC) for tax audit cases or a Digital Signature Certificate (DSC) for non-tax audit cases.
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