ITR U : Now File your Back dated Income Tax Return for AY 2021 & AY 2021-22 through ITR U Form

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ITR U : Now File your Back dated Income Tax Return for AY 2021 & AY 2021-22 through ITR U Form

Overview : ITR U Form -Within two years following the conclusion of the applicable assessment year, taxpayers will be able to file "updated" returns to address omissions and errors in their initial tax returns, according to a new provision suggested by the Finance Minister Nirmala Sitharaman during Budget 2022. ITR u file online

It was in the Union Budget 2022 that the government first mentioned the idea of an updated income tax return (ITR). The new provision allows taxpayers to correct errors or omissions on their ITRs within two years after filing, with the payment of additional taxes

If a person files an income tax return and later realises that they failed to record any income, they have up to two years from the end of the relevant assessment year to revise their return, as per tax rules

The much-awaited updated ITR (ITR-U) is now available on the income tax department’s website. According to the Income Tax website, “E-filing of Updated ITR u/s 139(8A) has been enabled for AY 2020-21 and AY 2021-22 using 

Excel

 utility for ITR 1 and 4. Refer details in News section. Please click Downloads | Income Tax Department to access and download the same for clicking respective AY folder. Once Updated ITR is prepared, you can upload the XML/JSON by logging into Income-tax website.”

 

What is ITR-U?

Within two years following the conclusion of the applicable assessment year, taxpayers will be able to file "updated" returns to address omissions and errors in their initial tax returns, according to a new provision suggested by the Finance Minister Nirmala Sitharaman during Budget 2022.

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

As per the Memorandum to the Budget 2022, “It is proposed to introduce a new provision in section 139 of the Act for filing an updated return of income by any person, whether he has filed a return previously for the relevant assessment year, or not. The proposal for updated return over a period longer than that is provided in the existing provisions of Income-tax Act would on the one hand bring use of huge data with the IT Department to a logical conclusion resulting in additional revenue realization and on the other hand, it will facilitate ease of compliance to the taxpayer in a litigation free environment.”

Who can file ITR-U

Reasons for updating your income:

·         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 Others



Updated Return cannot be filed in the following cases as per Finance Bill, 2022

·         If there is a return of a loss

·         Decreasing the total tax liability determined on the basis of return furnished

·         If it results in refund or increases the refund due 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 recomputation or revision of income under this Act is pending or has been completed for the relevant assessment year in his case.

For More Information

Email : [email protected]

Phone : 01141623205, 9990061912

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