Today in this Guide we will discuss about ITR U Form Conditions Applicability with Late Fees & Last date for the Filing. ITR-U Form [Updated Return] is the form that allows you to update your ITR by rectifying errors for up to two years from the end of the relevant AY. The government introduced the concept of ITR U in the Union Budget 2022.

What is ITR-U [Updated Return]

Have you ever made a mistake in your ITR or forgotten to report an income?

Section 139(8A) under the IT Act allows you a chance to update your ITR within two years. Now the thing is how will two years calculated? Two years calculated from the end of the year in which the original return was filed. ITR U form was introduced to optimise tax compliance by taxpayers without provoking legal action. Below we have mentioned ITR U applicability or Conditions

ITR-U Applicability or Conditions

Any person who has omitted or made an error in income details of any of the following returns can file an updated return:

  • Original return of income, or
  • Belated return, or
  • Revised return

An Updated Return can be filed in these cases:

  • Did not file the ITR. Missed ITR filing and belated return filling deadline
  • Income is not declared correctly
  • Chose wrong head of income
  • Paid tax at the wrong rate
  • To lower the carried forward loss
  • To lower the unabsorbed depreciation
  • To reduce the tax credit under section 115JB/115JC
  • A taxpayer could file only one updated return for each AY.

Who is not eligible to file ITR-U

ITR-U cannot be filed in these cases:

  • Updated return is already filed
  • For filing nil return/ loss return
  • For claiming/enhancing the refund amount.
  • When updated ITR results in lower tax liability
  • Search proceeding under section 132 has been initiated against you
  • A survey is conducted under section 133A
  • Books, documents or assets are seized by the IT authorities under section 132A.
  • If assessment/reassessment/revision/re-computation is pending or completed.

If there is no additional tax outgo (when the tax liability is adjusted with TDS credit/ losses and you do not have any additional tax liability, you cannot file an Updated ITR)

What is the time limit to file ITR-U

The time limit for ITR U filing is 24 months from the end of the relevant AY.

ITR U Last Date

Right now, you can file ITR U for the following years: –

  • AY 2020-2021 (FY 2019-2020)
  • AY 2021-2022 (FY 2020-2021)

ITR U Late Fee

You need to pay additional ITR U Late Filing Fee in below manner if not filed the Original Return Before Due date.

  • if your Income is 2.5 lakh to 5 lakh then 1000/-INR Late Fee
  • if your income is more than 5 lakh then 5000/-INR Late Fee

So above Late fee is apart from the Additional Tax and Interest on the same.

What is the Penalty for filing ITR U

Two different penalties are mentioned in Budget 2022 for filing ITR U/ ITR U late fees

and they are 25% and 50% of your additional tax liability.

  • If ITR U is filed within 12 months from the end of the relevant Assessment year, the penalty payable will be 25% of additional tax liability.
  • If ITR U is filed within 24 months from the end of the relevant Assessment year, the penalty payable will be 50% of additional tax liability.

So Hope you like this Article regarding the ITR U Form. if you are looking for ITR U Filing Service then just Contact to myonlineca anytime.