Rule 12AC of Income Tax Rules 1962:- The return of income to be furnished by any person, eligible to file such return under the sub-section (8A) of section 139, relating to the assessment year commencing on the 1st day of April, 2020 and subsequent assessment years, shall be in the Form ITR-U and be verified in the manner indicated therein.
Manner of Filling of Return via ITR-U form:-
| S. No | Eligible Person | Manner of Furnishing Updated Return of Income |
| 1 | Individual, HUF, LLP, Partnership Firm, AOP, BOI, local Authority, or an Artificial Judicial Person in whose case accounts are required to be audited under Section 44AB of the Act or Company or a Political Party required to furnish a return of Income in Form ITR-7. | Electronically through Digital Signature. |
| 2 | Individual, HUF, LLP, Partnership Firm, AOP, BOI, local Authority, or an Artificial Judicial Person or a Person required to file a return under Sub-Section (4A),(4B),(4C),(4D) of Section 139 other than a Person Notified in S.No. | Electronically through Digital Signature or EVC Code. |
Period for Which ITR-U can be Filled:-
Eligible Assessee can file updated return through ITR-U for an Assessment year 2020-21 and Subsequent Assessment years.
Time Limit for Filling Updated Return of Income:-
Eligible Assessee can file Updated Return of Income before the Expiry of 24months from the Relevant Assessment year for which return need to update.
For Example:-If an Assessee want to Update return of Income for the AY 2020-21 can do so till 31.03.2023 and for AY 2021-22 can do so till 31.03.2024.
Eligible Assessee for Filling ITR-U :-
- Any Person who had filled his/her return of Income under Section 139(1),139(4),139(5).
- Any Person who had missed to file his/her return.
- Updated Return can be submit only one time for an Assessment year.
Circumstances under which Updated Return can be Filled for any of the Assessment Year:-
- Return previously not filled.
- Income not reported correctly.
- Wrong head of Income Chosen
- Increase in Tax Payable.
- Reduction of Carried Forward Loss
- Reduction of Unabsorbed Depreciation
- Reduction of tax Credit u/s 115JB/JC
- Wrong Rate of Tax.
CRUX:- Act Does not Allow the Taxpayers to file the updated return if there is No Additional Tax Outgo to Government.
Additional Tax & Interest Provision:-
Declaring Additional Income in the Update Return is not only the moto of the Income Tax Department, Collection of additional Tax along with Interest need to be Payable while filling Updated Return of Income. As per Rule 12AC of Income Tax Rule 1962 an additional Interest @50% of Tax Amount need to be Payable if an assessee file Updated return of Income after the expiry of 12months but before 24months from the relevant Assessment year. However if Updated Return of Income has been filled with in 12months from the relevant Assessment year then Interest Rate on Additional Tax is 25%.
Let us Understand with Example:-
| S. No | FY for which return need to Update | Due Date to file ITR-U | Filling Date | Interest % |
| 1 | 2019-20 | 31.03.2023 | 31.03.2023 | 50% |
| 2 | 2020-21 | 31.03.2024 | On or before 31.03.2023 | 25% |
| 3 | 2020-21 | 31.03.2024 | After 31.03.2023 | 50% |
UPDATED Income Tax Return (ITR-U)
| Case in which ITR-U can Filled | Cases in which ITR-U can’t Filled |
| 1. Returns Previously not filled | 1.Nil Returns |
| 2.Income not Reported Correctly | 2.Loss Returns |
| 3.Wrong Head of Income Chosen | 3.Increase in Refund/Claims |
| 4.Reduction of Carry Forward Losses | 4.Search/Survey/Prosecution Proceedings are Initiated for said AY |
| 5.Reduction of Unabsorbed Depreciation | 5. Assessment/ Reassessment/ Revision/ Precomputation are Pending for said AY. |
| 6.Reduction of Tax Credit u/s 115JB/JC | |
| 7.Wrong Rate of Tax |
CRUX:- Act Does Not Allow the Taxpayers to fill the Return if there is No Additional Tax Outgo.
Amount Payable=Tax Amount+ Additional Tax+ Interest
| Return of FY 2019-20 | Return of FY 2020-21 |
| 50% of Tax Amount | 25% of Tax Amount |
Author Bio
an individual who’s annual income 4 lac for the ay 2021-22., can he submit updated itr us 139(8a)