Updated Return becomes Invalid

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This query is : Resolved

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An individual filed an updated return (ITR U) for AY 2023-24, showing a late fee of ₹1000 as additional tax paid, as no original return was filed. Despite the portal accepting the return without errors and e-verifying it, the department later declared it invalid. The reason cited was that the updated return resulted in a refund, which is not permitted under specific tax rules. The taxpayer disputes this, as they did not claim a refund and their income was below the basic exemption limit, questioning the portal's acceptance and subsequent invalidation.

Narendra JR

Narendra JR (Querist)
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08 July 2025 Individual having salary income 1,80,000 and ₹5000 Interest filed ITR U for A. Y. 23-24. Late Fees of Rs. 1000 has been shown as Additional Tax Paid. No Original Return was Filed. So, the Whatever Income Offered in ITR U (Updated Return) is Additional Income. While Filing No Validation Error shown by Income Tax Portal and ITR is E-Verified immediately. Later, Dept. Made such ITR Invalid stating that - "As seen from Sch. Part B-ATI of the updated return filed by you, the same results in a refund. Hence, in accordance with clause (c) of the first proviso to sub-section (8A) of section 139, the said updated return filed by you is invalid, ab-initio, and is deemed to have never been filed."

But, I have not claimed any Refund in ITR.
Is Income is below 2,50,000 - that's why it is considered Late Fees ₹1000 Refund?
But, without ₹1000 Late Fees IT Portal Showing Validation Error after we Paid Late Fees and put Challan Details in ITR U then It accepts.
What Can Be The reason of such Invalid ITR Treatment?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 July 2025 As income was below basic exemption limit, there was no additional income. Updated return cannot be filed if there is no additional income.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 September 2025 Good luck...

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