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.

This document covers

1. Persons eligible for filing Updated Returns
2. Persons not eligible to file Updated Returns
3. Time Limit to file Updated Returns
4. Penalty / Additional Tax Payable
5. ITR Form for filing Updated return
6. 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

1. 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.
2. 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.

1. If it is Return of Loss.
2. If it has the effect of decreasing the tax liability or increasing the refund.
3. A search has been initiated u/s 132 or books of accounts or other documents or any assets are requisitioned u/s 132(A).
4. A Survey has been conducted u/s 133A other than Section 133A(2A).
5. If any Assessment is pending or completed.
6. If Assessing Officer has information about the assessee under specified acts .
7. 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.
8. If any Prosecution proceedings have been initiated before the date of furnishing updated return.
9. If the taxpayer belongs to such class of persons as notified by board.

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

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

4. Penalty / Additional Tax Payable

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

1. 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
2. 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

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

1. Are you eligible for filing an updated return as per the conditions laid out in first, second and third provisos to section 139(8A)
2. Selecting the ITR Form (ITR 1,2,3,4) for filing an updated return
3. Reasons for updating your income
1. Return previously not filed
2. Income not reported correctly
3. Wrong heads of income chosen
4. Reduction of carried forward loss
5. Reduction of unabsorbed depreciation
6. Reduction of tax credit u/s 115JB/115JC
7. Wrong rate of tax
8. Others
4. Are you filing the updated return during the period
1. Up to 12 months from the end of the relevant assessment year
2. Between 12 to 24 months from the end of the relevant assessment year
5. Are you filing the updated return to reduce carried forward loss or unabsorbed depreciation or tax credit? >>> Select Yes / No

6. Frequently Asked Questions