How To File Income Tax Return After Last Date?|FAQ On ITR U

Recently CBDT has inserted a new rule 12AC and a new form ITR U, it has been a wish for many taxpayers to file their lapsed income tax returns or to update their ITR after the last dates.

But, this time the wishes came true but also not as expected🤔

Let’s further discuss more into it.

Table of Contents

What is ITR U?

CBDT enabled a new form named ITR U, for taxpayers who needed to update their income tax returns or who failed to file the income tax returns within the last date

Who needs to file ITR U?

taxpayers who want to update their wrongly filed income tax return or who want to file their lapsed income tax return can file ITR U, but there is a catch. Through ITR U taxpayers can only increase their tax liability and also need to pay an extra interest with late fees.

What is the time limit to file ITR U?

The time limit provided for filing an updated return is 24 months from the end of the relevant assessment year. This means, that in the current financial year 2022-23, a person can file an updated return for AY 2020-21 (FY-19-20) and AY 2021-22 (FY-20-21). And the same has been enabled from April 2022

Who are eligible to file ITR U?

  1. A person who has filed his original income tax return
  2. Or a person who has already furnished belated ITR
  3. Or furnished revised return
  4. A person who needs to file his lapsed income tax return
  5. A person gets only one chance to file ITR U for a particular AY(no revision allowed yet)

Note: A person can now furnish an updated return in case of any omission or wrong statement in his earlier return of income and should provide valid reasons for it in ITR U.

Who are restricted or ineligible to file ITR U?

  1. If search, survey, and prosecution proceedings are on the assessee for the relevant assessment year
  2. The assessee cannot file an updated return even if assessment/ reassessment/ revision/ re-computation is pending or completed for the relevant assessment year.

ITR U can be filed only if:

  • Return previously not filed
  • Income not reported correctly
  • Wrong heads of income chosen
  • Reduction of carried forward loss
  • Reduction of unabsorbed depreciation
  • Reduction of tax credit u/s 115JB/115JC
  • Wrong rate of tax

ITR U cannot be filed if:

  1. updated return is a return of loss
  2. updated return is reducing Income Tax Liability in return filed earlier
  3. updated return results in the increase in Refund
  4. search initiated under section 132
  5. books of Accounts requisitioned under section 132A.
  6. a survey conducted under section 133A
  7. any proceeding of assessment, reassessment, re-computation or revision is pending or completed for that relevant year
  8. AO has information against such person under the 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.

What are the interest and tax payments in ITR U?

  1. The assessee has to pay an additional interest of 25% if ITR U is filed within 12 months after the last date
  2. and after 12 months interest doubled by 50%
  3. So, for FY -19-20 ITR U filing 50% additional interest on tax due with relevant fees
  4. as well as for FY -20-21 ITR U filing 25% additional interest on tax dues with relevant fees

Can a person claim a refund in ITR U?

No, no one can get a refund through ITR U, even if TDS has been deducted for the relevant year.

Can we file ITR U online?

Yes, but till now online JSON and offline excel utility is enabled for updating only ITR 1 and ITR 4

ITR U form download


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