Introduction How to Refile Income Tax Return (ITR) If committed any mistake while filing? ITR-U

Have you ever made any mistake while filing your Income Tax Return and got panicked about what to do next. Don’t worry you can update your filings through ITR-U also known as Updated Income Tax Return which allows you to update your filing and correct any committed mistakes under section 139 (8A) of Income Tax Act within a specific time period. In this article you will get to know the duration till when can you update your filings and a step by step procedure of filing ITR-U.

What Is Updated Income Tax Return (ITR-U)

ITR-U is given under section 139 (8A) of Income Tax Act which allows an individual to rectify any mistake committed while filing the ITR. However, this provision is available only for a particular period of time in a year that is within 24 months from the end of relevant assessment year. 

In order to file an ITR-U, you must accurately describe the original return, indicate any changes or additions, and electronically file the updated return using the official Income Tax Department website or other platforms. In order to avoid fines and legal repercussions, it is imperative to make sure the amended return is filed before the time.

Who are eligible to file an ITR-U?

Previously unfiled return

To declare their income and pay their taxes, taxpayers who filed a Return Previously Not Filed can file an Updated Return.

Income not accurately reported

When income is misreported, taxpayers have the option to file an Updated Return to correct the information and provide accurate information about their income.

Incorrect choice of income heads

Taxpayers can use ITR-U to rectify income classification errors and allocate income under the proper heads when the incorrect heads are selected.

Diminishment of the loss that is carried forward

Taxpayers may file an Updated Return to make the necessary adjustments and lower the carried forward loss in cases where it is necessary.

Reduction of depreciation not absorbed

In the event that taxpayers need to alter and lower the amount of unabsorbed depreciation, they can file an Updated Return.

Tax credit reduction pursuant to Sections 115JB/115JC

Taxpayers may file an Updated Return to adjust the tax credit in cases where Sections 115JB/115JC result in a reduction of the tax credit.

Incorrect tax rate

Taxpayers can use ITR-U to adjust the applied rate in cases when it is erroneous, ensuring that their tax liability is accurately calculated.

Who is ineligible for Filing ITR-U?

There are various circumstances in which an ITR-U cannot be submitted:

• Already Filed an Updated Return: If, for that assessment year, an updated return has already been filed in accordance with section 139(8A) of the Income-tax Act, 1961.
• Returns with No Income or Loss: Taxpayers are unable to submit an amended return with no income or loss.
• No Additional Tax Liability: Updated returns are not allowed if they do not result in an increase in tax liability. This covers situations in which TDS credit or loss adjustment changes are fully offset against additional taxes that are due.
• Tax authorities’ interventions include ongoing or finished actions/surveys under Section 133A or searches under Section 132, which may involve the seizure or requisition of assets, books, or documents in accordance with Section 132A.
• Ongoing Assessments: If an assessment, reassessment, revision, or re-computation is ongoing or finished, an ITR-U cannot be filed.
• Claims for Greater Refund: Do not file an ITR-U to make claims or request a larger refund.

How to file ITR-U?

There are several processes involved in filing Form ITR-U. The following are the detailed instructions to assist you with the filing process:

• Open the e-Filing Portal and log in: To file income tax e-returns, go to this official website and enter your PAN as the user ID.
• Navigate to the e-File Menu: Click on the ‘e-File’ option after logging in, then choose ‘File Income Tax Return.’
• Choose the year of assessment (A.Y.): Select the appropriate A.Y. to file the revised return for.
• Select the Type of Filing: When asked, choose ‘Updated Return u/s 139(8A)’.
• Choose Status: Using the drop-down menu, select the appropriate status, such as Individual, HUF, Company, etc.
• Complete the Information: Give specifics about the income that was either not disclosed or underreported on the initial tax return. Make sure you have Form-16, bank statements, and evidence of investments on hand, along with any other pertinent documentation, for appropriate reporting.
• Compute the Tax: By updating the income details, the site will assist in calculating your tax liability, including any interest that may be payable, punitive interest, and other penalties.
• Remit taxes: Make sure to pay any outstanding taxes before filing the return. Direct tax payments can be made via the e-filing system.
• Check and Submit: Verify that all of the entries on the ITR-U form are accurate and complete by checking it before submitting it. Check the form and then send it in.
• Verification: The return must be checked after it has been submitted. The Central Processing Centre (CPC) in Bengaluru can receive a signed ITR-V (Acknowledgment) or an EVC from a bank account. Aadhar OTP can also be used for this.
• Acknowledgment: The IT Department will send a confirmation if the verification is successful. Save the acknowledgement for your documentation.

What is the deadline for submitting an ITR-U?

An updated return, or ITR-U, has to be filed within a certain amount of time. After the relevant assessment year ends, taxpayers have 24 months to file the amended return. This implies that people can submit amended returns for Assessment Years 2020–21 and 2021–22 for the current fiscal year 2022–23.

Here are the deadlines for submitting an amended ITR for particular assessment years to help you understand:

Assessment Year	Last Date of Filing ITR-U
2020-2021	31st March 2023
2021-2022	31st March 2024
2022-2023	31st March 2025