Form ITR-U for Filing Updated Return
- The Finance Act, of 2022 has introduced a new concept of updated return, which has permitted taxpayers to update their ITRs within two years of filing, subject to payment of taxes.
- The Central Board of Direct Taxes (CBDT) has now notified a new Form ITR-U for filing updated Income Tax Returns in which taxpayers will have to give the exact reason for filing it along with the amount of income to be offered to tax. The new Form ITR-U will be available to taxpayers for filing updated K Income tax returns for 2019-20 and 2020-21 fiscals. The present article briefs the Form ITR-U for filing Updated Return.
Who is Eligible to File Form ITR-U?
- Any taxpayer can furnish an updated return whether he has furnished / not furnished an original return, revised return or belated return in case of any omission, error or wrong statement in his earlier return of income.
An Updated Return can be filed if:
- ·
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 ineligible to File Form ITR-U?
- ·
If updated return
is return of loss
- ·
If updated return
is reducing Income Tax Liability in return filed earlier
- ·
If updated return
results in the increase of Refund
- ·
If search has
been initiated under section 132
- ·
If books of
Accounts or any other documents are requisitioned under section 132A.
- ·
If survey has
been conducted under section 133A
- · If any proceeding
of assessment, reassessment, re-computation or revision is pending or completed
for that relevant year
- · If Assessing
Officer has information against such person under Prevention of Money
Laundering Act or Black Money (Undisclosed Foreign Income and Asset) and
Imposition of Tax Act or Benami Property Transactions Act or Smugglers and
Foreign Exchange Manipulators Act and the same has been communicated to the
assessee.
- · If information
for the relevant assessment year has been received under an agreement referred
to in section 90 or section 90A in respect of such person and the same has been
communicated to him, prior to the date of furnishing of return under this
subsection.
- · Other Notified
Persons.
What is the Time Limit to File the ITR-U?
- The time limit for filing ITR-U is 24 months from the end of the 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 A.Y. 2020-21 and AY 2021-22.
- E.g., The Return of FY19-20 can be updated till 31st March 2023.
How is an Updated Return verified?
ITR-U can be verified through:
- · Electronic Verification Code (EVC), is given for the non-tax audit cases.
- · Digital Signature Certificate (DSC) in tax audit cases.
Is there any requirement to pay any additional tax?
- An additional 25 percent on the tax due is to be paid if the Updated ITR is filed within 12 months, while the rate will go up to 50 percent if it is filed after 12 months, but before 24 months from the end of relevant Assessment Year. Hence, taxpayers looking to update their returns for FY 2019-20 will have to pay the tax due and interest along with an additional 50 percent of such tax
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