All about updated income tax return “ITR U” u/s 139 (8A)
CBDT has notified form for updated return “ITR U” u/s 139 (8A). Updated return was proposed in Union Budget 2022. CBDT vide Notification No. 48/2022 dated 29/04/2022 make rule to implement provisions of updated return from the AY 2020-2021. Point wise summary of the provisions related to updated return u/s 139(8A) :
1. Applicability of Updated return u/s 139(8A)
- The provisions for filing an updated return are applicable from Assessment Year (AY) 2020-2021.
2. Purpose of ITR-U
- ITR-U is the form used for filing an Updated return u/s 139(8A).
3. Time Limit for Filing Updated Return U/s 139(8A)
- An updated return must be filed within 24 months from the end of the relevant assessment year. For example, for AY 2023-2024, the updated return can be filed until March 31, 2026.
- However Finance Bill 2025 provides that, the updated return can now be filed upto 48 months from the end of relevant assessment year. #Budget2025
4. Can an updated return be filed if the original return was not filed
- Yes. An updated return can be filed irrespective of whether a return has been filed earlier for the relevant assessment year.
5. Additional Income Tax Payable if Filed within 12 Months
- If the updated return is filed within 12 months from the end of the relevant assessment year, the additional income tax payable (over and above the tax and interest) is 25% of the aggregate of tax and interest.
- Example: If the tax and interest due is Rs. 1,00,000, the tola tax payable would be Rs. 1,25,000.
6. Additional Income Tax Payable if Filed After 12 Months but Within 24 Months
- If the updated return is filed after 12 months but within 24 months, the additional tax payable is 50% of the aggregate of tax and interest.
- Example: If tax and interest are Rs. 1,00,000, the total tax payable would be Rs. 1,50,000.
7. Additional Income Tax Payable if Filed After 24 Months but Within 36 Months (#Budget2025)
- If the updated return is filed after 24 months but within 36 months, the additional tax payable is 60% of the aggregate of tax and interest.
- Example: If tax and interest are Rs. 1,00,000, the total tax payable would be Rs. 1,60,000.
8. Additional Income Tax Payable if Filed After 36 Months but Within 48 Months (#Budget2025)
- If the updated return is filed after 36 months but within 48 months, the additional tax payable is 70% of the aggregate of tax and interest.
- Example: If tax and interest are Rs. 1,00,000, the total tax payable would be Rs. 1,70,000.
9. Restrictions on Filing an Updated Return u/s 139(8A)
- An updated return cannot be filed in the following cases:
- If it is a return of loss.
- If the updated return results in:
- Decreasing the total tax liability previously determined.
- Increasing the refund or resulting in a refund.
- An updated return cannot be filed by a person where:
- a search initiated under section 132 or assets requisitioned under section 132A.
- he has undergone a survey under section 133A (other than subsection 2A).
- 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.
- 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.
- Has previously filed an updated return for the relevant assessment year earlier.
- any proceeding for assessment or reassessment or re-computation or revision of income under this Act is pending or has been completed for the relevant assessment year.
- The Assessing Officer has information in respect of such person under acts such as:
- Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976.
- Prohibition of Benami Property Transactions Act, 1988.
- Prevention of Money-laundering Act, 2002.
- Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
- The person is subject to prosecution proceedings under Chapter XXII of the Income Tax Act.
- The person belongs to a class of persons notified by the Board as ineligible to file updated returns.
10. Filing an Updated Return After Filing a Return of Loss
- If a person has filed a return of loss under section 139(1), they can file an updated return only if the updated return is a return of income.
11. Carry Forward of Losses or Credits
- If filing an updated return for a previous year being return of income, results in changes to carried forward losses, unabsorbed depreciation, or MAT credit for subsequent years, an updated return must be filed for each subsequent year to reflect the changes.
12. Can refund be claimed through Updated return u/s 139(8A)?
- No. Refunds cannot be claimed through an updated return under Section 139(8A).
13. How many times can an updated return be filed for the same assessment year
- An updated return can only be filed once for a particular assessment year.
This updated return provision allows taxpayers to correct errors or omissions in their filed returns, but it comes with additional taxes, time restrictions, and certain conditions that need to be met.
