it was in Union Budget 2022 that the government previously mentioned the idea of ​​an update income tax return, The new provision allows taxpayers to correct errors or omissions in their ITR within two years of filing it along with payment of additional taxes.

If a person files an income tax return and subsequently finds that he has failed to file any income, he shall have two years from the end of the relevant assessment year to revise his return in accordance with the tax rules. The time till

And now, the much awaited Update ITR (ITR-U) is available on the website of Income Tax Department. According to Income Tax website, “e-filing of updates” ITR U/s 139(8A) has been enabled for AY 2020-21 and AY 2021-22

Utility for ITR 1 and 4. Check details in news section. Please click on download. To access and download it for Income Tax Department click on respective AY folder. Once the updated ITR is generated, you can upload the XML/JSON by logging into the Income Tax website.

Click
Click here to get ITR-U Form.

What is ITR-U?

According to a new provision suggested by Finance Minister Nirmala Sitharaman during Budget 2022, within two years after the close of the applicable assessment year, taxpayers should be able to file “updated” returns to remove omissions and errors in their initial tax returns. will be able

This form can be used to update income within twenty four months from the end of the assessment year relevant to individuals.

According to the Budget 2022 memorandum, “It is proposed to introduce a new provision in section 139 of the Act for filing of updated return of income by any person, whether he has filed earlier return for the relevant assessment year or not.” Proposal of updated returns in a period exceeding that provided in the existing provisions of the Income Tax Act would bring the use of huge data to a logical conclusion with the IT department on one hand resulting in additional revenue realization and on the other hand, it would enable taxpayers in a litigation free environment. will facilitate ease of compliance.”

Who can file ITR-U

Reasons to update your income:

• Return not filed earlier
• Income not reported correctly
• Wrong head of income selected
• forward loss reduction
• Absorbed Depreciation Reduction
• Reduction in tax credit u/s 115JB/115JC
• wrong rate of tax

a punishment

Additional tax of 25 to 50 percent will be levied on the tax and interest payable on the additional income. According to the copy of PTI, if the updated ITR is submitted within 12 months, an additional 25% of the outstanding tax and interest should be paid; If deposited after 12 months but 24 months before the end of the applicable assessment year, the rate increases to 50%. However, taxpayers cannot avail the updated return benefits in that particular year if the prosecution process is initiated by furnishing a notification for a certain assessment year.

Additionally, a taxpayer’s return will be considered invalid if they file an amended return but fail to pay the additional taxes.

As per the Finance Bill, 2022, updated return cannot be filed in the following cases:

• If the loss is refundable
• Deduction of total tax liability determined on the basis of return furnished
• If it results in refund or increases the refund payable on the basis of return furnished
• If an updated return has been furnished by him under this sub-section for the relevant assessment year;
• Any proceeding for assessment or reassessment or recalculation or revision of income under this Act is pending or in his case has been completed for the relevant assessment year.
• The Assessing Officer has information in respect of such person for the assessment year concerned under the Smuggling and Foreign Exchange Manipulation (Seizure of Property) Act, 1976 or the Prohibition of Benami Property Transactions Act, 1988 or the Prevention of Money Laundering. Act, 2002 or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and has been informed to him before the date of furnishing the return under this sub-section.
• If the relevant assessment year information has been received in respect of such person under an agreement referred to in section 90 or section 90A and has been communicated to him before the date of furnishing of return under this sub-section.
• In the case of any prosecution proceeding under Chapter XXII, before the date of furnishing of the return under this sub-section, in respect of such person, has been commenced for the relevant assessment year.
• If he is such person or belongs to such class of persons as may be notified by the Board in this behalf.