What is ITR U and Time limit for filing the return

What is ITR U and Time limit for filing the return.

ITR U is update your income tax return. Section 139(8A) of IT act allow person who fail to file their return within prescribed time , then they can file return within 24 month from the end of relevant assessment year

ITR-U is applicable from 1st April 2022. So during the current financial year 2022-23, you can file ITR-U for AY 2020-21 and AY 2021-22.

How much additional tax

Additional tax is 25 percent upto 12 months and 50 percent tax if late will be after 12 months but before 24 months.

Who is Eligible to File Form ITR-U?

Any person haveĀ  error or omitted in original return, revise return or belated return

  • Return previously not filed.
  • Income not reported correctly.
  • Wrong heads of income chosen.
  • Reduction of carried forward loss.
  • Reduction of unabsorbed depreciation.
  • Reduction of tax credit u/s 115JB/115JC.
  • Wrong rate of tax.

Who is not Eligible to File Form ITR-U?

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)