Sparsh Wadhwa
Quick Summary
Introduction The Income Tax Return Updated Form (ITR-U) is a provision that allows taxpayers to rectify errors or omissions in their previously filed ITRs. Introduced in the Union Budget 2022, this form enables taxpayers to file an updated return within two years from the end of the relevant assess
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FAQ :
The ITR-U form, or Updated Income Tax Return, is a special form under Section 139(8A) of the Income Tax Act that allows taxpayers to update their previously filed tax returns to correct errors or omissions.
Taxpayers can file an ITR-U if they missed filing their ITR before the due date, made errors in income declaration, selected the wrong head of income, paid tax at an incorrect rate, or need to reduce carried-forward losses or adjust tax credits.
An ITR-U cannot be filed if an updated return has already been filed for the same year, if the taxpayer wants to claim a refund or reduce their tax liability, or if a tax search, survey, or seizure has been conducted.
The deadline for filing an updated return has been extended to four years from the end of the relevant assessment year.
Yes, taxpayers must pay an additional tax when filing an ITR-U. This tax is calculated as a percentage of the total tax due (including interest), ranging from 25% to 70% depending on how late the return is filed.
The total tax liability for an ITR-U is calculated as Tax Due + Interest + Late Fees + Additional Tax, after deducting any TDS, advance tax, or reliefs.
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