All about Form ITR-U | Income Tax Updated Return
Form ITR-U ( Income tax updated return) - Latest updates
- What is ITR-U?
- Who can file an updated ITR-U?
- Cases in which ITR-U can be filed
- Cases in which ITR-U cannot be filed
- Who Cannot File ITR-U?
- Details required to be mentioned in ITR-U
- Time Limit to File ITR-U
- Deadline for Filing an Income Tax Updated Return (Form ITR-U)
- How to File Form ITR-U?
- Computation of (Income Tax for Updated Return)
- Additional Tax payment
- How to Verify ITR-U?
- ITR-U Form Download
- FAQs
What is ITR-U?
ITR-U, or the Updated Income Tax Return, enables you to rectify mistakes or declare any new income missed on your original, revised, or previous tax return. It was implemented to help people meet their tax duties correctly and avoid legal difficulties, as well as to assist the government in collecting tax on previously unreported income.
You can file an ITR-U within 24 months of the end of the applicable assessment year. The form has been divided into two parts:
- Part A: This part includes basic information such as your PAN, name, Aadhaar number, and assessment year. You must also specify whether you already filed a return, which part it was filed under, and the acknowledgement number and date.
- Part B: This is where you update your income information under various heads and claim deductions under sections such as 80C, 80D, and 80G. You must report assets and liabilities if your income exceeds ₹50 lakhs.
Who can file an updated ITR-U?
If you made a mistake or omitted certain income information on your tax return, you can file an updated return. This applies whether you originally filed.
- A regular return
- A belated return (filed after the due date)
- A revised return (to correct earlier mistakes)
You can file an updated return in cases like:
- You did not file your return.
- Some income was not reported properly.
- You chose the incorrect income head.
- I paid tax at the incorrect rate.
- The need to reduce carried-forward losses
- Adjust unabsorbed depreciation.
- Tax credit under sections 115JB/115JC has to be reduced.
Remember that you can only file one updated return for each assessment year (AY).
Cases in which ITR-U can be filed
ITR-U can be filed for the following reasons:
- Previously unfiled return of income
- Incorrectly reported income
- Adjust or change the head of income
- Decrease of the carried forward loss
- Decrease of unabsorbed depreciation
- Income tax credit reduction
Cases in which ITR-U cannot be filed
- Whenever a search is initiated under section 132 of the Income-tax Act or a requisition is made under section 132A
- When a survey is conducted under section 133A other than under section 133(2A) of the Income-tax Act
- There is any proceeding for assessment, reassessment, recalculation or revision for that relevant year that is pending or completed
- If the Assessing Officer has information regarding such person under prevention of money laundering or black money (undisclosed foreign income and asset) and Imposition of Tax Act, Benami Property Transactions Act, or foreign exchange manipulators act, and the same has been communicated to the assessee.
- If any information is received under an agreement described in sections 90 or 90A of the Income-tax Act
Who Cannot File ITR-U?
You can’t file an ITR-U in the following cases:
- If you have already filed an updated return.
- If you are filing a NIL return or claiming a loss.
- If you want to claim or increase your refund.
- If the updated return lowers your tax liability.
- If search procedures (Section 132) have been started against you.
- If you were surveyed under Section 133A.
- If the IT department took away your assets, books, or records (Section 132A).
- If your assessment, reassessment, revision, or re-computation is now ongoing or has been finished.
- If you do not owe any further tax, your TDS credit or losses will fully cover your liability.
Simply put, ITR-U is only for correcting past mistakes and paying due taxes, not for lowering liability or claiming more refunds.
Details required to be mentioned in ITR-U
Using ITR-U, the taxpayer needs to specify only the additional income, under the prescribed income heads, on which tax is to be paid.
Also, taxpayers are required to specify the legitimate reason for filing the updated return in ITR-U.
Additionally, you must include the details of the challan used to pay the extra tax for the revised return.
Time Limit to File ITR-U
You can file a modified return (ITR-U) within 24 months of the end of your respective assessment year.
For example:
- If you are filing for AY 2022-23, the deadline is March 31, 2025.
- The deadline for filing for AY 2024–2025 is March 31, 2027.
Here’s a brief overview of the last four years:
| Financial Year (FY) | Assessment Year (AY) | Last Date to File ITR-U |
| 2020-21 | 2021-22 | 31st March 2024 |
| 2021-22 | 2022-23 | 31st March 2025 |
| 2022-23 | 2023-24 | 31st March 2026 |
| 2023-24 | 2024-25 | 31st March 2027 |
Deadline for Filing an Income Tax Updated Return (Form ITR-U)
After the end of the specified assessment year, the updated return can be filed within 24 months. For instance, for the assessment year 2022–2023, an updated return needs to be submitted by 31 March 2025.
How to File Form ITR-U?
The form has two sections: Part A and Part B. To properly fill them out, follow the directions below.
Part A: General Information
1: Enter your Permanent Account Number (PAN).
2: Enter your Full Name.
3: Provide your Aadhaar Card Number.
4:Enter the assessment year for which you are filing the return.
5: Choose Yes or No to indicate whether you previously submitted a return for the selected assessment year.
6:If you responded yes, check the ITR acknowledgment document to determine if the return was filed under Section 139(1) or another section.
7: Enter the form number, acknowledgment number, or receipt number, as well as the date the original return was filed (DD/MM/YYYY). This information can be found in your ITR acknowledgment.
8:Examine the eligibility requirements described earlier and select the correct option.
9: Select the ITR form number that corresponds to your return.
10: Choose at least one reason to update the ITR-U. You may pick multiple reasons if necessary.
11: If it has been 12 months since the end of the financial year in which the return was initially submitted, select the “12-24 months” option. Otherwise, choose “up to 12 months”.
12: If the modified return impacts any carried-forward loss or unabsorbed depreciation, specify the assessment year for which these changes apply. Additionally, mention whether a revised or updated return was submitted in the past.
Part B: ATI – Calculation of Updated Total Income & Tax Payable
- Report the extra income under each appropriate income category (detailed breakdowns are not required).
- Provide the income presented on your most recent tax return.
- In the ITR form (1–7) you previously filed, enter the total income amount according to “Part B-TI.”
- If applicable, enter the amount payable in the ‘Amount Payable’ section of Part B-TT of your ITR form.
- If applicable, include the refund amount listed in the ‘Refund’ section of Part B-TT of the ITR form.
- Input the tax payable from the previous return.
- If you requested a refund, provide either the claimed refund amount or, if received, the actual refunded amount (including interest).
- If the last return was filed after the deadline, please include the late filing fee paid at the time.
- Enter the regular assessment tax that was paid on the previous return.
- Compute the aggregate liability on the additional income declared.
- Calculate the additional tax liability based on the updated income (25 or 50% of the difference between points 9 and 7).
- To calculate the net tax payable, add the overall tax liability and the additional tax liability (9 + 10).
- If the updated return results in additional tax due, make the payment under Section 140B as Self-Assessment Tax and send the challan details accordingly.
Computation of (Income Tax for Updated Return)
In the Income Tax Act 1961, section 140B explains how to calculate income tax on an updated return which is as detailed below;
Step 1: Payable Tax + Interest + Payable Penalties for Income Tax Non-filing (If Any) + Payable Amount as Additional Tax (For Taking Advantage of Section 139(8A)) = Payable Amount ( Total Income Tax Owed)
Step 2: Total Income Tax Liability (as above) – TDS + TCS + Advance Tax+Tax Relief, etc = Net Tax Liability under Section 140B
Additional Tax payment
A new provision called the updated return was proposed by the Finance Minister to provide taxpayers with the opportunity to correct errors and mistakes made in the ITR .It allows taxpayers to submit an updated return after paying additional tax.
In addition to the due tax and interest, an additional 25% needs to be paid if the updated ITR is filed within 12 months; otherwise, the rate will increase to 50 % if it is filed after 12 months, but before 24 months from the end of the relevant Assessment Year.
- Taxpayers who wish to file tax returns for fiscal 2022-23 will have to pay the due tax and interest, plus an additional 50%.
- The additional sum will be 25% of the outstanding tax and interest, for individuals wishing to file for FY 2023–24.
Moreover, if a taxpayer files an updated return but does not pay the additional taxes, the return is considered invalid.
How to Verify ITR-U?
An ITR-U can only be verified by a Digital Signature Certificate (DSC) in tax audit cases.
For non-tax audits, an alternative option, called Electronic Verification Code (EVC), is available.
ITR-U Form Download
FAQs
1.What is the deadline to file ITR-U for the financial year 2022-23?
Ans: The deadline for filing ITR-U for AY 2022-23 is March 2025.
2.What is the deadline to file ITR-U for the financial year 2024-25?
Ans: The deadline to file ITR-U for the financial year 2024-25 is March 31, 2027.
3.Can I file more than one ITR-U for the same assessment year?
Ans: No, only one ITR-U can be filed in a given assessment year.
4.Can I file an ITR-U if I haven't submitted an original ITR?
Ans: No, ITR-U is primarily for updating previously filed returns.
