Follow Us :

Filing ITR-U Return in India: Benefits, Process and Additional Income Tax Payable – Last Resort For Those Who Missed the ITR Due Date

INTRODUCTION

In India, the government has introduced the concept of updated returns in the Union Budget 2022 to benefit taxpayers who have failed to file their Income Tax Returns (ITRs) by the due date. ITRU under Section 139(8A) is a facility provided by the government to such taxpayers.

The ITR-U return allows taxpayers to file their income tax returns along with any additional information that may have been missed or omitted during the financial year. This return can be used to amend an already filed return or to file a return for any financial year after the due date.

The process of filing the ITR-U return is the same as filing any other ITR. The taxpayer has to log in to the official website of the Income Tax Department and provide the required details. Once the details are verified, the taxpayer can file their ITR-U return.

The ITR-U return is a great facility provided by the government to benefit taxpayers who have failed to file their ITRs on time. This step taken by the government will help taxpayers to stay compliant with the tax laws and also help them to avoid any penalties or interest.

ITR U/ UPDATED RETURN AS PER INCOME TAX ACT & RULES?

Section 139 (8A), 140B and 153(1A) of income tax act was Ins. by the Act No. 06 of 2022, w.e.f. 1-4-2022 & rule 12AC of the Income-tax Rules, 1962 are relevant sections and rule for updated return.

A taxpayer may submit an updated return of their income or the income of another person for whom they are liable to pay tax under the Income Tax Act at any time within two years of the end of the assessment year. This right to submit an updated return does not apply if the updated return is a return of a loss, decreases the total tax liability determined by the original return, or results in a larger refund.

Person shall not be eligible to furnish an updated return ITR U under this subsection in any of the following cases:

(a) where a search has been initiated under section 132 or books of account or other documents or any assets are requisitioned under section 132A in the case of such person;

(b) where a survey has been conducted under section 133A, other than sub-section (2A) of that section, in the case of such person;

(c) where a notice has been issued to the effect that any money, bullion, jewellery or valuable article or thing, seized or requisitioned under section 132 or section 132A in the case of any other person belongs to such person;

(d) where a notice has been issued to the effect that any books of account or documents, seized or requisitioned under section 132 or section 132A in the case of any other person, pertain or pertains to, or any other information contained therein, relate to, such person,

for the assessment year relevant to the previous year in which such search is initiated or survey is conducted or requisition is made and any assessment year preceding such assessment year.

However, this is also not possible if

(a) an updated return has already been furnished,

(b) any assessment or reassessment or recomputation or revision of income proceedings are pending or have been completed,

(c) information in respect of the person has been received under the smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (13 of 1976) or the Prohibition of Benami Property Transactions Act, 1988 (45 of 1988) or the Prevention of Money-laundering Act, 2002 (15 of 2003) or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015) and the same has been communicated to him, prior to the date of furnishing of return,

(d)  information for the relevant assessment year has been received under an agreement referred to in section 90 or section 90A in respect of such person and the same has been communicated to him, prior to the date of furnishing of return,

(e)  any prosecution proceedings under the Chapter XXII have been initiated for the relevant assessment year in respect of such person, prior to the date of furnishing of return.

(f) he is such person or belongs to such class of persons, as may be notified by the Board in this regard

Additionally, a person who has sustained a loss and filed a return of loss within the prescribed time will be allowed to furnish an updated return of income.

ITR-U Return - Last Resort for those Who Missed ITR Due Date

ADDITIONAL INCOME-TAX PAYABLE IN ITR U:

The additional income-tax payable at the time of furnishing the return under subsection (8A) of section 139 is 25% of the aggregate of tax and interest payable if the return is filed after the expiry of the time available under subsection (4) or subsection (5) of section 139 and before 12 months from the end of the relevant assessment year, or 50% of the aggregate of tax and interest payable if the return is filed after 12 months from the end of the relevant assessment year but before 24 months from the end of the relevant assessment year.

After expiry of the time available under subsection (4) or subsection (5) of section 139 and before completion of the period of twelve months from the end of the relevant assessment year 25 % of aggregate of tax and interest payable
After the expiry of twelve months from the end of the relevant assessment year but before completion of the period of twentyfour months from the end of the relevant assessment year 50% of aggregate of tax and interest payable

BENEFITS OF ITR U

Filing ITRU helps to avoid the hassle of a scrutiny assessment under Section 143(3), best judgement assessment under Section 144 and income escaping assessment under Section 147. It also helps to avoid a survey, search and seizure proceedings.

If you have missed the due date for filing your income tax return for the Financial Year 20212022, which is 31st December 2022, you can still file your ITR through ITR U. However, no refund claim is possible through this option, and you cannot file a nil return or a loss return through ITR U.

CONCLUSION

The ITRU return facility provided by the government is a great step taken to benefit taxpayers who have failed to file their ITRs by the due date. It allows them to amend an already filed return or to file a return for any financial year after the due date with some additional income tax. The process of filing the ITRU return is the same as filing any other ITR. This facility is beneficial for taxpayers who want to stay compliant with the tax laws. The ITRU return also helps taxpayers to avoid any scrutiny assessment, best judgement assessment and income escaping assessment. Even though the ITRU return does not allow a refund claim or filing a nil or loss return, it is still a great facility provided by the government to benefit taxpayers.

*******

(Author can be reached at email address fcsasharma@gmail.com or on Mobile No. 9718941592)

Disclaimer: The purpose of this article is to provide informational material only. It is not intended to form a contractual agreement of any kind or serve as a substitute for professional advice. Fcs Amit Kumar Sharma has taken all necessary precautions to ensure the accuracy of the information provided herein at the time of publication. We will not be liable for any direct, indirect or consequential damages that may arise as a result of the use of this article or the information contained therein.

Author Bio

I'm a Company Secretary with 7+ years of experience in providing corporate compliance to startups, waste management companies, Agri-tech, IT, Trusts and secretarial audit services to various listed and big companies. I have in-depth knowledge of Indian laws and regulations, including Income Tax, GST View Full Profile

My Published Posts

Sextortion: Definition, Modus Operandi and Tips to Protect Yourself- In the Era of KALYUG Exploring the Process of Obtaining/Modification/Surrender- Importer-Exporter Code (IEC) in India RBI’s Acquisition & Holding of Shares or Voting Rights in Banking Companies Directions, 2023 Uncovering the Tax Benefits of Startup India under Section 56 of Income Tax Act, 1961 Startup India: Impact of Section 80IAC of Income Tax Act on Startups View More Published Posts

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

One Comment

  1. please check the below points for income tax return = u as above

    1 the budget must be for financial year 2021 / 22
    2 this facility is for 2 years = 31 / 12 / 22 and for 31 / 12 / 23
    3 2 assessment years = 2022 / 2023 and 2023 / 2024
    4 for 2021 / 22 the rax rate is 25 percent + interest
    5 for 2022 /23 the rax rate is 50 percent + interest
    6 so you can save on penalty + scrutiny + other penal provisions as given in your article
    7 for financial year 2021 / 2022 = 31 / 12 / 22 is the cut off date and for financial year 2022 / 2023 the cut off date shall be 31 / 2 / 2023
    8 so if a person has not filed an income tax return any time = 2 years = from = financial year 2021 / 22 then he has 2 financial years available for a voluntary disclosure of escaping income or updating or revising or belated all combined or any form of income escaped or not disclosed
    8 penalty + penal provisions can be saved
    9 otherwise = if this facility is not availed up to 31 / 12 / 2023 = then you pay = tax + interest + penalty + scrutiny + search and seizure + possible prosecution + most important of all = mental tension + stress + anxiety + other health issues = so the assessee has to make a = choice = peace of mind = or = stress and other legal and other costs
    8 first = check = this must be a = union budget 2021 / 2022 = relevant to financial year = 2021 / 2022 = budget is always for the next forthcoming = financial year = which is = april 1 to march 31 of next following year

    10 check this first before sharing or forwarding to others

    ok

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
April 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930