Updated Return (ITR-U) u/s 139(8A) Income Tax Guide

Budget 2022 has introduced the new section 139(8A) in Income Tax Act, 1961. Refer budget update @ Introduction of new Income Tax 'Updated' Return Type. Section 139(8A) enables the filing of "Updated Return" (aka ITR-U) by the taxpayers. Section 139(8A) has come into effect from 01st Apr 2022.

Updated Returns can be filed by the taxpayers who have not filed the return or have filed the returns u/s 139(1)- Original, 139(4)-Belated and 139(5)-Revised. The Objective of introducing this facility is to promote voluntary tax compliance and reduce litigation.

Updated Return (ITR-U) u/s 139(8A) Income Tax Guide

This document covers

Persons eligible for filing Updated Returns
Persons not eligible to file Updated Returns
Time Limit to file Updated Returns
Penalty / Additional Tax Payable
ITR Form for filing Updated return
Frequently Asked Questions

1. Persons eligible for filing Updated Return u/s 139(8A)

All persons (Individual, HUF, Firms/LLP, Companies, AOP, BOI etc) are eligible to file Updated returns u/s 139(8A). But the taxpayers needs to meet the following criteria to file the updated returns

The Updated return can be filed only if the taxpayer has not filed the return of income earlier or there are errors/omissions in original filed return.
The Updated return can be filed only if the taxpayer has to disclose any additional income which was missed earlier and should pay additional taxes.

2. Persons not eligible to file Updated Return u/s 139(8A)

All persons (Individual, HUF, Firms/LLP, Companies, AOP, BOI etc) are eligible to file Updated returns u/s 139(8A). But the updated return cannot be filed in below cases.

If it is Return of Loss.
If it has the effect of decreasing the tax liability or increasing the refund.
A search has been initiated u/s 132 or books of accounts or other documents or any assets are requisitioned u/s 132(A).
A Survey has been conducted u/s 133A other than Section 133A(2A).
If any Assessment is pending or completed.
If Assessing Officer has information about the assessee under specified acts .
If any information has been received u/s 90 or 90A and same has been communicated to him before the date of furnishing updated return.
If any Prosecution proceedings have been initiated before the date of furnishing updated return.
If the taxpayer belongs to such class of persons as notified by board.

IMPORTANT NOTE

As a result of furnishing of an 'updated' return for any financial year, if the following is reduced for any subsequent year, then the person shall be required to file an 'updated' return for each subsequent year that was filed.

Loss or any part thereof carried forward under Chapter VI; or
Unabsorbed depreciation carried forward under Section 32(2); or
Tax credit carried forward under Section 115JAA; or
Tax credit carried forward under Section 115JD

3. Time Limit to file Updated Returns

The time limit for filing updated returns is 2 years from the end of such relevant assessment year

For AY 2020-21 (FY 2019-20): The due date for filing updated return is 31st Mar 2023.
For AY 2021-22 (FY 2020-21): The due date for filing updated return is 31st Mar 2024.
For AY 2022-23 (FY 2021-22): The due date for filing updated return is 31st Mar 2025.
For AY 2023-24 (FY 2022-23): The due date for filing updated return is 31st Mar 2026.
For AY 2024-25 (FY 2023-24): The due date for filing updated return is 31st Mar 2027.

NOTE

The due date for filing Belated and Revised Income Tax returns for FY 2023-24 is extended to 15th Jan 2025 from 31st Dec 2024 for only Resident Individuals

With Reference to above, NRI, Firm, LLP, AOP, Companies and Trusts are eligible to file updated income tax returns w.e.f 01st January 2025

Resident Individuals can file updated income tax returns for AY 2024-25 w.e.f 16th Jan 2025

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4. Penalty / Additional Tax Payable

Updated return can be filed only with the penalty. The penalty for filing Updated return is as follows

Filed within 12 months from the end of relevant assessment year: Penalty is 25% of aggregate of tax and interest payable on filing of updated return
Filed after 12 months from the end of relevant assessment year: Penalty is 50% of aggregate of tax and interest payable on filing on updated return

Note: Section 140B provides for payment and computation of tax, interest, fee and additional income tax on updated return

Updated Income Tax Filing is newly introduced that requires attention, in case you need a tax expert help, do not hesitate to reach us or take the service @ Updated Income Tax Filing Plan

5. ITR Form for filing Updated return and details required

“ITR-U” has been notified by the Income Tax Department for filing updated return u/s 139(8A). The following are the details required to be furnished in ITR-U. The following are the information required to be given in ITR-U apart from the general information

Updated Income Tax Return (aka "ITR-U" ) is new and IT Department haven't given any guidelines for enabling straight-thru-process (STP) with EZTax.in yet. At the same time, its difficult for individuals to self-file their ITRs. Hence we have enabled ITR-U with EZTax.in Online ITR Portal to update your ITR per your requirement and use the JSON or XML file to import in to Govt Excel 'Updated ITR' and eFile.

In case any difficulty, do not hesitate to reach EZTax @ +91 7288 900 900

Are you eligible for filing an updated return as per the conditions laid out in first, second and third provisos to section 139(8A)
Selecting the ITR Form (ITR 1,2,3,4) for filing an updated return
Reasons for updating your income

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
Others

Are you filing the updated return during the period

Up to 12 months from the end of the relevant assessment year
Between 12 to 24 months from the end of the relevant assessment year

Are you filing the updated return to reduce carried forward loss or unabsorbed depreciation or tax credit? >>> Select Yes / No

Get help using automatedUpdated Return (ITR-U) Penalty Calculator

6. Frequently Asked Questions

1. Can we file the Updated return without filing original or belated returns?

Yes, Updated return can be filed even if the original or belated returns is not filed.

2. How many times can I file Updated return?

Updated return can be filed only once and it is not possible to revise updated return.

3. From which date, Section 139(8A) is effective?

139(8A) is effective from 01st Apr 2022 and the taxpayers can utilize the same from 01st Apr 2022 for last three financial years.

4. Do I need to pay penalty u/s 234F for filing updated return?

If you are filing the updated return for first time (not filed earlier), then you are required to pay penalty u/s 234F. If you have filed return earlier, then penalty u/s 234F will not be levied.

5. Will the return filed u/s 139(8A) will be considered as defective?

ITR filed u/s 139(8A) will be considered as defective if the return does not include tax payment details.