FORM ITR-U (INDIAN
INCOME TAX UPDATED RETURN):
Hello everyone, Welcome back to TAX DESTINATION Blog, we are here to bring to you one more important concept for this ITR Filing.
During
the Union Budget 2022, A new sub-section (8A) in section 139 is proposed to be
introduced to provide for the furnishing of updated returns under the new
provisions.
The
Finance Bill 2022 has been passed in the houses of parliament and CBDT has
inserted a new Rule 12AC in the Income-tax Rules, 1962 w.e.f 1st
April 2022.
Persons eligible to
file Form ITR-U:
Any
person, whether or not he has furnished a return under-
- Section 139(1) –
ITR filing until the due date - Section 139(4) – Belated
Return - Section 139(5) –
Revised Return
for any assessment year
may furnish an updated return of income under section 139(8A) within 24 months
from the end of the relevant assessment year.
According to Rule
12AC of Income-tax Rules, 1962 –
The
above eligible persons may furnish a return of income under section 139(8A)
relating to the assessment year
commencing on 1st April 2020 and subsequent assessment years as per
the relevant provisions of the IT Act in Form ITR-U.
A
taxpayer will be able to file only one updated return for each assessment year
ITR-U allows any
taxpayer-
- to file the return of
income not filed earlier. - to rectify any incorrect
disclosure in ITR. - to rectify or change the head
of Income. - to reduce carry the forward
loss. - to reduce unabsorbed
depreciation. - to reduce income tax
credit etc.
Cases in which Form
ITR-U can be filed:
Any of the following
reasons may be selected in Form ITR-U
- Return previously not
filed - Income not reported
correctly - Wrong heads of income
chose - Reduction of carried
forward losses. - Reduction of unabsorbed
depreciation - Reduction of tax credit
u/s 115JB/115JC - Wrong rate of tax
- Others
Cases in which Form
ITR-U cannot be filed:
- Nil Return.
- Return of a loss
- The claim of Refund or
Increase in a refund. - Reduction in Tax Liability.
- Search/ Survey/
Prosecution Proceedings are initiated in the case of such person or any other
person. - any proceeding for
assessment or reassessment or recomputation or revision of income under this
Act is pending or completed for relevant AY in his case.
Tax on updated
return (Additional Tax) under section 140B shall be paid and filling details of
tax paid challan is mandatory in Form ITR-U.
Late fees and
Additional Fees will also be charged.
Additional
income-tax payable at the time of furnishing the return under sub-section (8A)
of section 139:
If such return is
furnished after the expiry of the time available under section 139(4) or section
139(5) and before completion of the period of 12 months from the end of the relevant assessment year – 25% of the aggregate of tax due, interest and
fees payable as per the provisions of the Act.
If such return is
furnished after the expiry of 12 months from the end of the relevant
assessment year but before completion of the
period of 24 months from the end of the
relevant assessment year – 50% of the aggregate of tax, interest and fees payable
as per the provisions of the Act.
Now taxpayer has
the following options-
Before the expiry of the time
limit specified under section 139(5) of the Income Tax Act, 1961.
- Filing
of revised return under section 139(5) of Income Tax Act, 1961 or - Filing
of updated return under section 139(8A) of Income Tax Act, 1961 or - Rectification
of return under section 154 of Income Tax Act, 1961.
After the expiry of the time
limit specified under section 139(5) of the Income Tax Act, 1961 but before
completion of the period of 24 months from the end of the relevant assessment
year –
- Filing of updated return under section 139(8A) of Income Tax Act, 1961 or
- Rectification of return under section 154 of Income Tax Act, 1961.
After the expiry of 24
months from the end of the relevant assessment year up to the time limit
specified under section 154 of the Income Tax Act, 1961.
- Rectification
of return under section 154 of Income Tax Act, 1961.
Filing Procedure:
ITR U has been enabled for AY 2020-21 and AY 2021-22 in Excel utility for ITR 1 & 4 on 27th June 2022 in Income Tax Portal. It can be accessed through the following link- Downloads | Income Tax Department. There is no separate form for ITR-U, it can be accessed through the normal ITR-1 and ITR-4 forms.
On selection of section 139(8A) under “PART A GENERAL INFORMATION” in ITR-1 or ITR-4 in excel utility, a new worksheet named – “Part A Gen_139(8A)” will be enabled through which we can fill details related to updated return in Form ITR-U.
XML can be generated from the excel utility after filling in all the relevant information (Including mandatory fields indicated in red labels). The generated XML shall be uploaded to the Income Tax E-Filing Portal (Home | Income Tax Department). After uploading, the return shall be verified and submitted in order to complete the filing successfully.
—
Hemanth Uppala
CA Finalist
Content Writer | TAX DESTINATION
