Your income tax return must be updated using Form ITR-U. In the Union Budget 2022, the government first mentioned the idea of updated returns. Continue reading to learn more about ITR-U.
What is an ITR U?
The Income Tax Act, Section 139(8A), allows you to update your ITR within two years. The two-year period will begin with the end of the financial year in which the original return was filed. ITR-U was implemented to improve taxpayer compliance while avoiding legal action.
Who can file ITR U?
Anyone who has made an error or omitted certain income details in any of the following returns is eligible to file an updated return
Original income return
Belated return
Revised return
An Updated Return can be filed in the following scenarios:
The return was not filed. The late filing deadline and the missed filing deadline
Income is not correctly declared.
Chose wrong head of income
Paid taxes at an incorrect rate.
To reduce the loss carried forward
To lessen unabsorbed depreciation
To reduce the tax credit under Sections 115JB/115JC
Note: Only one revised return could be submitted by a taxpayer for each assessment year (AY).
ITR U cannot be filed in the following scenarios:
Updated return is already filed.
For submitting a loss or nil return.
To claim/increase the refund amount.
When a revised return reduces the amount of tax due
A search proceeding under Section 132 has been initiated against you.
A survey is being carried out in accordance with Section 133A.
The Income Tax authorities seize or demand books, documents, or assets under section 132A.
If assessment/reassessment/revision/re-computation is pending or completed.
You cannot file an Updated ITR if there is no additional tax outgo (when the tax liability is adjusted with TDS credits/losses and you have no additional tax liability).
What is the deadline for filing ITR-U?
The deadline for filing ITR-U is 24 months after the end of the applicable assessment year.
ITR-U becomes effective on April 1, 2022. So, you can file ITR-U for financial years 2020-21 and 2021-22 during the current financial year 2022-23.
For example, the Return for financial Year 2019-20 can be updated until March 31, 2023.
The above is only a brief overview of the entire process and for more specifics, please contact our team of Tax Experts to help guide you in the process.
We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.
Quote of the day:
“Build your own dreams, or someone else will hire you to build theirs.“
- Farrah Gray
Regards
Asif Hussain
+91-96323-32850
©2023 by caumang.com
Comments