1.) What is Updated Return ?

Updated Return is Return of Income under section 139(8A) of Income Tax Act 1961 to be filed in Form ITR-U which allow any taxpayer

-to file return of income not filed earlier

-to rectify any incorrect disclosure in Income Tax Return

-to rectify or change head of Income

-to reduce carry forward loss

-to reduce unabsorbed depreciation

-to reduce income tax credit etc.

2.) Who can submit Updated Return ?

Any person can submit updated return whether or not he has furnished his Original/Revised/Belated return of Income.

3.) Time Limit for Submission of Updated Return?

Updated return can be field within 24 months from the end of relevant assessment year. For Example, Updated Return for AY 2022-23 can be filed up to 31st March 2025

4.) When Updated Return Cannot be Submitted ?

In the following circumstances updated return cannot be submitted

  • If updated return is return of loss
  • If updated return is reducing Income Tax Liability in return filed earlier
  • If updated return result in 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, recomputation or revision is pending or completed in that 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 assessee.
  • Other Notified Person

Updated Return - Section 139(8A) - Income Tax - (FAQs)

5.) How to Calculate Income Tax on Updated Return ?

As per section 140B of Income Tax Act 1961, income tax liability on updated return will be calculated as follows:-

Tax Payable + Interest + Fees Payable for non filing of Income Tax (if any) + Amount Payable as Additional Tax (For taking benefit of Section 139(8A))= Total Income Tax Liability

Total Tax Liability (As calculated above) Less TDS/TCS/Advance Tax/Tax Relief etc = Net Tax Liability under section 140B

6.) What is Additional Tax Liability?

In order to take benefit if section 139(8A), assessee needs to pay additional tax computed as follows: –

  • If updated return is to be filed within 12 months from the end of relevant assessment year than 25% of Tax,SC,HEC and Interest as computed above.
  • If updated return is to be filed after 12 but before 24 months than 50% of Tax,SC,HEC and Interest as computed above.

7.) Date of Applicability of Provisions :- 1st April 2022

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February 2024