Can I file ITR U with a penalty of rs. 1000

This discussion clarifies the rules around filing an updated Income Tax Return (ITR-U). While a flat Rs. 1000 penalty isn't standard for updated returns, you are required to pay additional tax. This additional tax is calculated as 25% or 50% of the total tax and interest due, depending on how late the return is filed after the due date. A separate fee under Section 234F may apply if you never filed an initial return for that assessment year.