CA Darshak Shah
The Central Board of Direct Taxes (CBDT) has notified a new Rule 12AC and a new Form ITR-U which shall be required to be filed along with the respective ITR, to furnish an updated return.
In the Form ITR-U, the assessee needs to disclose only the amount of additional income, under the prescribed income heads, on which additional tax is required to be paid. No detailed income break-up needs to be disclosed, like in the case of filing regular ITR forms. The assessee must also specify the exact reason for filing the updated return in ITR-U. Further, it is required to mention the challan details for the additional tax paid for the updated return.
Eligibility for Filing Form ITR-U:
Persons eligible to update returns for FY 2019-20 and subsequent assessment years as per newly inserted section 139 8(A) of the act, are:
- any person, who has furnished his original return of income, or
- furnished belated return, or
- furnished revised return
can now furnish an updated return in case of any omission or wrong statement in his earlier return of income by such person.
- In case a person has not furnished his return of income even then such person can furnish an updated return via Form ITR-U.
- A assessee would be able to file only one updated return for each assessment year.
Ineligibility for Filing Form ITR-U:
- If search or survey or prosecution proceedings are initiated against the assessee for the relevant assessment year, they cannot file the updated return.
- The assessee cannot file an updated return even if assessment/ reassessment/ revision/ re-computation is pending or completed for the relevant assessment year.
An Updated Return Can be filled 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
An Updated Return Cannot be filled if :
- 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 AO 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 assesse.
- Other Notified Person
Period for Filling:
These provisions are applicable from 01-04-2022, and the time limit provided for filing an updated return is 24 months from the end of the relevant assessment year. So in the current financial year 2022-23, a person can file an updated return for AY 2020-21 and AY 2021-22.
Computation of Income Tax for Updated Return:
- As per section 140B of Income Tax Act 1961, income tax liability for updated return will be calculated as follows:-
| Particulars | Amount (₹) |
| Tax Payable as per Original ITR | XXXX |
| Add: Interest | XXXX |
| Add: Fees Payable for non-filing of Income Tax (if any) | XXXX |
| Add: Additional Tax Payable
(For taking benefit of Section 139(8A) |
XXXX |
| Total Income Tax Liability | XXXX |
| Less: TDS/TCS/Advance Tax/Tax Relief etc | XXXX |
| Net Tax Liability under section 140B | XXXX |
Total income as reported in Part B TI of the ITR form shall also be reported here to compute the additional tax payable by the assessee for the updated return u/s 140B.
Adjustments such as previously paid tax, refund issued to the assessee, and fee for default in the furnishing of return of income under section 234F shall be considered while calculating such additional tax.
Additional Tax Payment:
The Act requires that the assessee has to pay an additional 25 percent interest on the tax due if the updated ITR is filed within 12 months, while interest 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, assessee looking to update their returns for FY 2019-20 will need to pay the tax due and interest along with an additional 50 percent of such tax and interest. For those looking to file an updated return for FY 2020-21, the additional amount will be 25 percent of the tax payable and interest.
Verification Process:
1. Digital Signature Certificate (DSC) in tax audit cases.
2. Electronic Verification Code (EVC), is given for the non-tax audit cases.
Can i set off TDS amount with ITR U late fees?
Can I file updated return for FY 21-22 in case of refund but wrong income is booked
one of my client want to pay the additional tax while filing of ITR U . In which column he will show the amount of penalties in Challan 280 and which Head (300 or 400 )
If you need any help in filling ITR u form without paying any extra tax or late fees.
what’s up at 9166387878
IS THERE ANY PENALTY FOR FILING UPDATED RETURN FOR F Y 2019-20 IN AUDIT CASES
Hi sir, My client has claimed excess refund in AY 2021-22. for exmaple he has claimed of Rs. Rs.70,000/- and received Rs.72,000/- with interest. Later, hehas notice that he has claimed Rs.26000/- excess refund . He has claimed Rs.70,000/- instead of Rs.44,000 . now he wants file updated return and pay Rs.26000/- along with additional tax of 25%. is this the right way to file return?
Kindly give suggestions how to file fy 2020-21 returns. It’s not uploading without condonation order
give me procesture for the filling the return AY 20-21 and AY 21-22
Hello sir
I want to file itr for 2020-21 with the help of itr form U .So please 🙏 reply fast
I have filed Rectification return for Ay 2020-21 as earlier when original return was filed an assessee forget to claim tds refund & now time limit for Revised return has also elapsed. But that Rectification Return processed with NO Refund ( even though all particulars & Figures correctly reported) so I again filed Rectification Return. Still it has been processed with no refund. Kindly help how can i calim refund.
Thanks
revise itr under section 119(2)(b)
Sir I filed return on 3rd nov 21 for AY2021-22. The site is showing under processing since march 6 2022. What does it mean and how long does it take to process? There is no query in worklist or pending action. Thanks.
Dear Sir,
Very Nice Article.
I have a question in my mind ?
One of my client has not filed his return for FY 2019 20.
He has got refund of TDS of around 100000
Due to some reason he did not file his return.
Can he file updated return. ?
Will be be able to claim refund ?
Your expert advice in this matter would be really useful.
CA Devang.
No, He cant file Updated return for claiming refund but yes you can show deducted TDS amount in Current year return & claim the refund.
Sir devang I have the same query , is it possible to claim refund for AY 19-20 & 20-21 , not filed through updated return
MY CLIENT MISSED ITR ASS YEAR 2021 -22 AND HAVING REFUND,CAN HE CLAIM REFUND AFTER ADJ INTEREST @ 25% UNDER THIS SECTION?