Filing Updated Income Tax Returns: If you have missed filing your Income Tax Return (ITR) for the financial years 2021-22 (AY 2022-23) or 2022-23 (AY 2023-24), then there is nothing to worry about. The Income Tax Department allows taxpayers to file updated returns till 31 March, 2025 under a specific rule. Let us understand in detail the process and rules for filing ITR.
What is ITR-U?
ITR-U or updated income tax return is a facility through which taxpayers can rectify omissions or errors in their previously filed returns or even if they had not filed the return. This facility is available for 24 months from the end of the assessment year. But there are some conditions and restrictions in it.
When can I file updated return?
You can file updated return in these situations:
1. Had not filed earlier: If you had not filed ITR for that financial year.
2. Income was wrongly reported: If income was omitted or wrongly reported in your original return.
3. Income shown under wrong head: If income is reported under wrong category or head.
4. Wrong tax rate used: If tax calculation was done at wrong rate.
Apart from this, by filing updated return you can:
• Reduce carried forward losses.
• Adjust unabsorbed depreciation.
• Reduce tax credit under Section 115JB/115JC.
When can ITR-U not be filed?
You cannot file updated return if:
1. Nil return or loss return: If the return is nil or shows loss.
2. Tax liability is reducing: If filing an updated return reduces the total tax liability.
3. Refund is increasing: If it increases the tax refund.
4. Search and seizure cases: If the taxpayer is the subject of search and seizure or prosecution proceedings.
Filing deadline
For financial years 2021-22 and 2022-23, updated returns have to be filed by 31 March, 2025. This extended timeline gives taxpayers enough time to review their financial records and rectify errors.
FAQs
1. Can updated ITR be filed under the new tax regime or can the regime be changed? No, taxpayers have to choose their tax regime (old or new) by the due date prescribed under section 139(1). The regime cannot change after the due date.
2. How many times can I file updated ITR in a financial year?
Under Section 139(8A), only one time updated ITR is allowed in a financial year.
3. If tax is not payable, can I file ITR-U?
No, if your total tax liability after TDS credit is zero and there is no additional tax payable, you cannot file updated return.
4. If income is less than ₹5 lakh and claim is made under section 87A, can I file updated return?
Yes, you can file updated return, but late filing fees will be applicable which will have to be updated in “Taxes paid under 140B” section.
How to file updated ITR?
1. Login to E-Filing Portal: Access your account on Income Tax Department’s e-filing portal.
2. Select Assessment Year: Choose the relevant assessment year.
3. Use the correct form: Use the ITR form applicable for your income.
4. Give details of changes: Clearly specify the corrections or updates.
5. Pay additional taxes: If applicable, pay additional taxes and penalties under section 140B.
6. Submit Return: Review everything and submit the updated return online.
Penalties for Filing Updated Return
Filing an updated return will attract late fees and additional tax under section 140B. The amount depends on the time elapsed after the original filing deadline and the nature of updates.
Conclusion
Updated income tax return (ITR-U) provides a valuable opportunity to taxpayers to correct mistakes or omissions in their tax filings. Ensure compliance and avoid penalties by keeping in mind rules and deadlines. The deadline to file updated returns for financial years 2021-22 and 2022-23 is March 31, 2025. Use this facility timely and keep your tax records accurate and transparent.
