ITR-U Return Filing in India
ITR-U, or Updated Income Tax Return, is a form introduced to help taxpayers rectify errors or omissions in previously filed Income Tax Returns (ITR). It also allows individuals who missed filing their returns within the due date and belated return deadline to comply with tax regulations. The Indian government introduced ITR-U in the Union Budget 2022.
Budget 2025 Update:
The time limit for filing an updated return has been extended from 2 years to 4 years from the end of the relevant assessment year. This extension gives taxpayers more time to voluntarily rectify their tax filings, ensuring smoother compliance.
Who Can File ITR-U Return Filing Under Section 139(8A)?
Taxpayers eligible for ITR-U return filing include those who:
Missed filing the original return.
Did not declare income correctly.
Chose the wrong head of income.
Paid tax at the wrong rate.
Need to reduce carried-forward loss, unabsorbed depreciation, or tax credit under Section 115JB/115JC.
Only one updated return per assessment year is allowed under ITR-U Return Filing.
Who is Not Eligible to File ITR-U Return?
ITR-U Return Filing cannot be done if:
An updated return has already been filed.
It results in a nil return or an increased refund.
It lowers tax liability.
There are pending assessments, searches, or surveys under Sections 132, 133A, or 132A.
No additional tax is payable.
- Ease of Filing: Simplifies the tax return filing process with a user-friendly interface.
- Accurate Tax Calculation: Automatically calculates tax liability, minimizing errors.
- E-Filing Integration: Enables direct electronic filing with the Income Tax Department.
- Wide Range of Forms: Supports various ITR forms for different taxpayers.
- Error Detection: Identifies and prompts users to correct mistakes before submission.
- Document Upload: Allows uploading of necessary supporting documents.
- Time & Cost Efficient: Saves time and money by reducing the need for consultants.
- Free & Accessible: Available for free on the Income Tax Department’s website.
- Security: Ensures encrypted, secure data transmission.
- Post-Filing Services: Allows tracking of return status and responses to notices.
To file an updated return using ITR-U, you need the following documents:
- PAN Card: Mandatory for filing any income tax return.
- Aadhaar Card: Required for e-verification of ITR-U.
- Form 16: Issued by your employer to show salary details and TDS deductions.
- Form 26AS: A consolidated tax statement showing tax deducted at source (TDS) and tax paid.
- Annual Information Statement (AIS) & Taxpayer Information Summary (TIS): Summarizes financial transactions.
- Bank Account Details: Required for refund processing (if applicable).
- Challan for Additional Tax Paid (if applicable): Proof of tax payment under Section 140B.
- Original/Revised ITR Acknowledgement: If a return was filed previously.
- Other Income Proofs: Rental income receipts, capital gains statements, etc.
- Investment Proofs: Evidence for deductions claimed under Sections 80C, 80D, 80E, etc.
- Loan Interest Certificates: Home loan, education loan, etc.
- Business Financial Statements: For self-employed individuals and businesses.
ITR-U must be submitted along with an updated version of the applicable ITR form (ITR 1–7). The form consists of:
Part A: General Information
- PAN, Name, Aadhaar Number, and Assessment Year.
- Filing history (original return details).
- Reason(s) for updating the return.
- Selection of applicable ITR form.
Part B: ATI Computation of Updated Income and Tax Payable
- Additional income details.
- Tax, interest, and penalties.
- Computation of additional tax (25% or 50% as applicable).
- Net tax liability.
How to Verify ITR-U?
ITR-U can be verified using:
- Aadhaar OTP
- Electronic Verification Code (EVC)
- Digital Signature Certificate (DSC) (mandatory for tax audit cases)
How to Compute Tax Payable for ITR-U?
Your total tax liability while filing ITR-U will be:
Total Income Tax Liability = Tax Payable + Interest + Late-filing Fees + Additional Tax
Net Tax Liability = Total Income Tax Liability - (TDS/TCS/Advance Tax/Tax Relief)
Additional Tax on ITR-U Filing:
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Frequently Asked Questions in India
What is ITR-U?
ITR-U is a provision that allows taxpayers to file or rectify their Income Tax Returns (ITR) for previous years, even if they missed the original deadline or need to correct errors.
Who can file ITR-U?
Any taxpayer who missed filing their ITR for a previous year or wants to correct mistakes in a previously filed return can use ITR-U.
What are the benefits of filing ITR-U?
ITR-U helps you stay compliant with tax laws, avoid penalties, and claim refunds for taxes paid in excess. It also allows you to correct any errors in past returns.
Is there a deadline for filing ITR-U?
Yes, ITR-U can be filed within the specified time frame determined by the Income Tax Department, which varies depending on the assessment year.
Can I claim a refund while filing ITR-U?
Yes, if you’re entitled to a refund due to overpaid taxes, you can claim it while filing ITR-U.
What is the penalty for filing ITR-U?
Penalties may apply based on the amount of tax due and the delay in filing. Interest and penalties are charged on unpaid taxes.
Can I file ITR-U for multiple years at once?
Yes, ITR-U can be filed for multiple assessment years if needed, as long as they fall within the allowed time frame.
Can I rectify errors in my ITR-U after submission?
Once filed, ITR-U cannot be revised or corrected. It’s important to ensure accuracy before submission.
How do I file ITR-U?
ITR-U can be filed online via the Income Tax Department’s official portal, with the required documentation and details of the previous years’ income and taxes.
Is filing ITR-U compulsory?
Filing ITR-U is not compulsory unless you need to rectify past mistakes, claim a refund, or comply with tax laws after missing the original filing deadline.
