Updated ITR and refund claim
This query is : Resolved
Quick Summary
Mahabir Prasad Agarwal
(Querist)
11 April 2024
Refund of ITDS is not allowed vide Updated Return. But whether tax liability can be set off from ITDS ?
CA R SEETHARAMAN
(Expert)
12 April 2024
Yes, it can be setoff in updated return with a meagre payment tax.
CA Roomi Gupta
(Expert)
12 April 2024
Updated ITR can be filed only if there is an additional tax liability even if it arise after set off the TDS.
Message likes :
1 times
15 August 2025
a) Updated Returns (ITR-U):
Taxpayers can correct previously filed ITRs using ITR-U within 48 months post-assessment year as permitted by Finance Act, 2025.
Penalties scale with the delay: 60% extra tax if filing in 3rd year, 70% in the 4th year.
ITR-U utilities for AY 2021-22 and 2022-23 (ITR-1 & ITR-2) are now live on the portal.
CAalley
b) Reflexive Delays in Refunds:
Increased automation and stringent cross-verification with data from Form 26AS, AIS, and TIS can delay refunds.
Outstanding tax demands or pending assessments may result in refund adjustments or hold-ups.
However, interest on delayed refunds is payable under Section 244A, starting early in the assessment year for timely filers or from date of filing otherwise.
The Economic Times
c) Emerging Relief for Late Refund Filers:
Notably, the new Income Tax Bill, 2025 proposes relief (Clause 479), such as waiving penalties for small taxpayers who file ITRs solely to claim refunds—even if late.
Taxpayers can correct previously filed ITRs using ITR-U within 48 months post-assessment year as permitted by Finance Act, 2025.
Penalties scale with the delay: 60% extra tax if filing in 3rd year, 70% in the 4th year.
ITR-U utilities for AY 2021-22 and 2022-23 (ITR-1 & ITR-2) are now live on the portal.
CAalley
b) Reflexive Delays in Refunds:
Increased automation and stringent cross-verification with data from Form 26AS, AIS, and TIS can delay refunds.
Outstanding tax demands or pending assessments may result in refund adjustments or hold-ups.
However, interest on delayed refunds is payable under Section 244A, starting early in the assessment year for timely filers or from date of filing otherwise.
The Economic Times
c) Emerging Relief for Late Refund Filers:
Notably, the new Income Tax Bill, 2025 proposes relief (Clause 479), such as waiving penalties for small taxpayers who file ITRs solely to claim refunds—even if late.
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