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All About Updated Income Tax Return – Section 139(8A)

What is ITR-U?

Section 139(8A) of the Income Tax Act has been added as a new section by the Finance Bill 2022. This new section makes it easier for taxpayers to file an "Updated Return." This provision became operative on April 1, 2022.

ITR-U form is an updated return & is notified to help assesse’s to update income u/s 139(8A) & Rule 12AC. Taxpayers filing ITR-U will have to give reasons for updating the income in return previously filed or not.

Whether or not the taxpayer furnished the original return, an updated return can still be filed. A taxpayer has two years from the conclusion of the relevant Assessment Year to file a revised return. A taxpayer may now submit a revised return for the period beginning with AY 2020–21.

When can it be filed?

ITR-U is a tax return form in which taxpayers can file tax returns for assessment year two years prior to the current assessment year.i.e. taxpayer can file an updated return for AY: 2020-21 in FY: 2022-23 to offer to tax additional income or in case you have missed filing the original return.

ITR-U can it be filed 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

Updated return cannot be filed in the following cases:

  • If updated return is a loss,

  • If updated return will decrease the total tax liability declared earlier,

  • If updated return results in refund or increases the refund filed earlier,

  • In case of search & seizure or case where any prosecution proceedings have been initiated against the taxpayer.

  • Where a search has been initiated under section 132 or requisition is made under section 132A of the Income-tax Act

  • Where a survey has been conducted u/s 133A other than survey u/s 133(2A) of Income-tax Act

  • Where any proceeding for assessment or reassessment or recomputation or revision of income is pending under the Income-tax Act

  • Where the Assessing Officer has information for the relevant assessment year Blank Money law, Benami law, etc.

  • Where any information is received under an agreement referred to in sections 90 or 90A of the Income-tax Act

  • Where any prosecution proceedings are initiated under the Income-tax Act

Section 140 B-

Addition tax to be paid-

  • Where no return furnished earlier- If a return was not filed earlier (original, revised, or belated), the taxpayer would be responsible for paying the tax due, interest, and a late filing fee in addition to the additional tax. However, any advance tax, TDS, TCS, relief claimed under Sections 89, 90, 91, and 90A, and tax credits claimed to offset under Sections 115JAA OR 115JD would be taken into account.

  • Where return furnished earlier- He will be required to pay interest, additional tax, and tax on any stated additional income, but any prior interest will be deducted from the amount owed. He will be given credit for prior tax payments.

Amount of additional tax :

If the revised return is filed within a year of the relevant assessment year's end, then a 25% additional income tax as well as interest will be due.

If the amended return is filed between 13 and 24 months after the conclusion of the applicable assessment year, then a 50% additional income tax and interest will be due.

It is important to note that for one assessment year, the option of an updated return may only be selected once.

Benefits for the taxpayer:

  • An opportunity window to save oneself from paying an extra amount in the form of a penalty.

  • Enables a taxpayer to comply with their tax responsibilities without getting into hassles of the law.

  • a chance to come clean to the authorities if they have missed filing a tax return in the earlier year or have missed reporting some income.

YKG Corp.

CA Mukul Gupta



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