Updated on July 06, 2024 11:46:12 PM
ITR-U filing is a golden opportunity for taxpayers who missed filing their Income Tax Return or need to update their previously filed ITR within two years of original return filing. The government initially proposed the concept of an updated income tax return(ITR-U) in the Union Budget 2022. The ITR form U can be filed after paying an additional tax levied per the CBDT notification.
According to tax regulations, a person has up to two years from the end of the relevant assessment year to modify their income tax return if they discover they failed to declare their income within the time limit
ITR-U Filing [Sample]
ITR-U stands for Updated Income-Tax Return. Suppose you missed filing your tax returns within the due date or discovered some financial information that should have been included in your prior ITRs. In such cases, The central government provided an opportunity to file the updated income-tax return in the form of a new provision called ITR-U filing.
The provision enables a taxpayer to rectify the errors made while filing their previous ITRs or an ITR of the past 2 years missed by any taxpayer.
The Central Board of Direct Taxes (CBDT) introduced a new form regarding the updated return in a recent notification dated 29th April 2022. According to the CBDT official notification, If a taxpayer furnishes the return of income and is eligible for filing an updated ITR under section 139 - 8(A) of Income Tax Rules(11th Amendment 2022), then he must file it in the form ITR-U and also be verified in the manner indicated in the ITR-U notification.
The updated return provision is effective from 1st April 2022. The new rule allows a person to file the updated return of the last 2 years within 24 months from the original ITR filing.
Any individual, Partnership Firm, Limited Liability Partnership, Hindu Undivided family or Association of persons who falls under the following category are eligible for filing the ITR-U form :-
According to the official notification from the Central Board of Direct Taxes, the following reasons are acceptable for filing an Updated return form (ITR-U).
Note: A person can file only one updated return(itr-u) for each assessment year
The taxpayers get the opportunity to rectify the errors made in their original ITRs and Annual Information Statement (AIS). It also permits to file an updated or missed returns after paying an additional tax levied for the filing of ITR-U. The additional tax can be referred to as the late fees for belated return filing.
The additional tax structure for updated returns is as follows:
For Example - If your Total liable tax of FY 2021-22 was Rs. 10,000 and you file the ITR-U form in FY-2022-23(within 12 months), you need to pay an additional Rs. 2500 as a late fee. It makes a total of Rs. 12,500 to be paid.
For Example - If your Total tax amount for FY 2020-21 was Rs. 10,000 and you filed the ITR-U form in FY-2022-23(between 12 months and 24 months), you need to pay an additional Rs. 5,000 as a late fee. It makes a total of Rs. 15,000 to be paid.
You need to file the updated return within the time limit of 24 months from the end of the relevant Assessment Year. The income tax provisions regarding ITR-U are effective from 1st April 2022.
Explanation - You can file an updated return for Assessment Year 2020-21 and Assessment Year 2021-22 in the current financial year 2022-23 by paying additional fees of 50 per cent and 25 per cent, respectively.
Even if the deadline for filing Original ITR, Belated ITR, or Revised ITR has slipped or passed, taxpayers have a further 24 months to file their Income Tax Return.
ITR-U was brought by the union government to help the taxpayers to comply with their tax responsibilities and save themselves from the hassles of law.
Not only do the taxpayers benefit from the updated returns, but the government also generates huge revenue in the form of additional taxes and returns. CBDT claims to achieve around 1 lakh returns under the form ITR-U.
Taxpayers have to give reasons for updating the income return or incorrect report, which provides more transparency by reducing the chances of future tax notices.
The penalty for undisclosed income or non-filed income is ridiculously high as compared to the additional tax levied on the ITR-U. It protects taxpayers from facing any legal actions.
The process of filing income tax returns may seem a never ending process if you are not fully aware of the latest rules regarding taxes. It is advised to seek an expert like Professional Utilities to make the entire process effortless. We have got the skilled tax professionals to help you get all the requirements and assist you throughout the process of filing an updated ITR.
Contact our team to file your ITR-U form within 7 working days with Professional utilities:
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At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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Yes. With the new provision in the Income-tax rule, you can now file the Income tax returns of the last 2 years by filing a form called ITR-U after paying some additional fees as a late fine.
The late fees for ITR-U filing are 25% of your net Tax amount if you file within 12 months from the end of the relevant assessment year, and the late fees go to 50% of the Total payable tax if you file the updated return after 12 months and before 24 months from the end of the relevant assessment year.
The late fees applied are referred to as the additional tax for late filing.
You can file ITR for FY 2021-22 by filing the updated return form called ITR-U, and you must file the form within 24 months of the deadline of your original ITR Filing.
No, You cannot file ITR for the last 3 years. Updated ITR provisions only allow you to file your returns for the last 2 years.
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