Updated ITR - Section 139(8A)

As the financial year 2022-23 is approaching its end, the last date to file ITR for previous years is also expiring. In this article, let's discuss the two options to file ITR after due date of filing has expired.

The two main ways to file ITR is to either file belated ITR or to file Updated ITR. Belated ITR is in existence since long but it's time limit was revised in April 2021 and option to file ITR even after time to file belated ITR has expired is given to us via Updated ITR or ITR-U by section 139(8A).

Belated ITR under Section 139(4)

Belated ITR can be filed if due date of to file ITR as prescribed under Section 139(1) for a particular taxpayer has expired.

Taxpayer can file Belated ITR

• 3 months prior to the end of the relevant assessment year or
• Completion of assessment by authorities

whichever is earlier.

This means last date to file belated ITR is 31st December of the relevant assessment year. For example, belated ITR for AY 2022-23 can be filed, on or before 31st December 2022.

Updated Return under Section 139(8A)

Updated ITR serves the role of both Belated ITR and Revised ITR. In simple words, it is relevant for taxpayers who have filed ITR within time or even after due date and intends to revise it. Further it is relevant for those taxpayers who have not yet filed ITR for any particular AY.

Updated ITR can be filed within 24 months from the end of relevant assessment in case of:

1. ITR filed within due date under Section 139(1) or
2. Belated ITR filed under Section 139(4) or
3. Revised ITR filed under Section 139(5) or
4. ITR not filed for a particular AY

Updated ITR or ITR-U has been started for ITRs of AY 2020-21 onwards. Last date to file ITR-U for AY 2020-21 is 31.3.23 as per above rule of 24 months.

Conditions to be qualified to file Updated ITR

• ITR with loss or Nil ITR cannot be filed
• By filing Updated ITR, the tax liability must not decrease
• Filing of Updated ITR must not lead to refund or increase in refund
• Updated ITR for any AY can be filed only once
• Updated ITR cannot be filed if search, seizure or survey related proceedings are in process
• If additional income is reported but additional tax liability is adjusted with tax credits or additional income is adjusted against losses

Additional Tax Liability in case of Updated ITR

Income Tax Liability in case of updated ITR is total of –Tax Liability on income reported +Late ITR filing fees+ Additional Tax(as explained below)+ Interest on Tax .

As already discussed, Updated ITR can be filed within 24 months from the end of relevant AY.

1. If ITR-U is filed within 12 months from the end of relevant AY ------------ 25% of additional Tax +Interest on tax is to be paid and
2. If ITR-U is filed within 13 to 24 months from the end of relevant AY ----- 50% of additional Tax +Interest on tax is to be paid.

The author can also be reached at gandotra.himanshu@gmail.com.