Updated Return becomes Invalid

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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)

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)

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)

26 September 2025 Good luck...

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