ITR U – What is ITR-U Form and How to File ITR-U

Additional income-tax u/s 140B(3)

ITR-U or Updated Income Tax Return is the form that allows you to rectify errors or omissions and update your previous ITR. It can be filed within two years from the end of the relevant assessment year. The government introduced the concept of updated returns in the Union Budget 2022.

What is ITR-U?

ITR-U or Updated Income Tax Return, is a form that allows taxpayers to update their ITRs by correcting errors or omissions or allows a taxpayer to file ITR if they have not filed ITR within the due date and also missed to file the belated return, within two years from the end of the relevant assessment year. For example, if you filed an ITR for AY 2023-24 and missed the revised/belated return filing window, you can file an ITR-U after the end of the assessment year, i.e. 31 March 2024 but within two years from there, i.e. 31 March 2026. Please note that ITR-U filing for AY 2023-24 has started from 1st January 2024.

Section 139(8A) under the Income Tax Act allows you a chance to update your ITR within two years. Two years will be calculated from the end of the year in which the original return was filed. ITR-U was introduced to optimise tax compliance by taxpayers without provoking legal action.

Who can File ITR-U under Section 139(8A)?

Any person who has made an error or omitted certain income details in any of the following returns is eligible to file an updated return:

• Original return of income, or 
• Belated return, or 
• Revised return

An Updated Return can be filed in the following cases:

• Did not file the return. Missed return filing deadline and the belated return deadline
• Income is not declared correctly
• Choose wrong head of income
• Paid tax at the wrong rate
• To reduce the carried forward loss
• To reduce the unabsorbed depreciation
• To reduce the tax credit u/s 115JB/115JC

A taxpayer can file only one updated return for each assessment year(AY).

Who is Not Eligible to File ITR-U u/s 139(8A)?

ITR-U cannot be filed in the following cases:

• Updated return is already filed 
• For filing nil return/loss return
• For claiming/enhancing the refund amount.
• When updated return results in lower tax liability
• Search proceeding u/s 132 has been initiated against you
• A survey is conducted u/s 133A
• Books, documents or assets are seized or called for by the Income Tax authorities u/s 132A.
• If assessment/reassessment/revision/re-computation is pending or completed.
• If there is no additional tax outgo (when the tax liability is adjusted with TDS credit/ losses and you do not have any additional tax liability, you cannot file an Updated ITR)

Note: If the loss or any part thereof carried forward or unabsorbed depreciation carried forward or tax credit carried forward is to be reduced for any subsequent previous year as a result of furnishing an updated return of income for a previous year, an updated return is required to be furnished for each subsequent previous year.

What is the Time Limit to File ITR-U?

The time limit for filing ITR-U is 24 months from the end of the relevant assessment year. You should note that for the AY 2022-23, the last date to file ITR-U is 31st March 2025. However, for the return that your file for AY2024-25, the last date to file ITR-U is 31st March 2027.

The table for the previous four years have been shown in the table;

Should you Pay Additional Tax when Filing ITR-U?

Yes, you will have to pay an additional tax of 25% or 50% on the tax amount, depending on when you file the ITR-U.

• “Need help filing your ITR-U? Call +91 76766 15955 or email support@jlnrco.com.”

• “Avoid penalties—get professional help filing your Updated ITR today.”

• “Missed your return deadline? Let us help you file under Section 139(8A) stress-free.”