According to income tax rules and regulations, individuals, HUF, AOP, and BOI need to file returns by 31 July 2023 for income earned between 1 April 2022 to 31 March 2023. But, what if you have missed the due date of income tax returns? What if you have made errors or omissions in ITR which you might have realised right after submission?

ITR-U is a solution to this problem. Let’s understand in detail how to file revised or belated returns, eligibility criteria, and the due date of ITR-U.

What is ITR-U?

Due to specific reasons, the assessee may miss the due date of return filing or mention miss information, errors, omission, or wrong statement in its ITR. In such a case, there is a provision in income tax rules which allows you to furnish your return beyond the due date.

Eligibility criteria for filing ITR-U

An updated return can be filed in the following cases:

• You missed the return filing deadline and the belated return deadline
• You did not declare your income correctly
• You chose the wrong head of income
• You paid tax at the wrong slab-rate
• You need to reduce the carried forward loss, unabsorbed depreciation, or tax credit u/s 115JB/115JC
• You may file only one updated return for each assessment year (AY).
• Reduction of carried forward loss in case of income from “PGBP”
• Reduction of unabsorbed depreciation in case of income from “PGBP”

Who cannot file ITR-U under the section?

There are a few cases when you, as an individual, HUF, AOP, or BOI, cannot file updated returns. These reasons are as follows:

• You have already filed an updated return.
• You are looking forward to filing a nil return/loss return.
• You are looking forward to claiming or enhancing your refund amount.
• Your updated return results in a lower tax liability.
• A search proceeding by the income tax department is issued against you.
• An inspection against your books of accounts is issued against you.
• Your books, documents, or assets are seized or called for by the Income Tax authorities.
• Assessment/reassessment/revision/re-computation is pending or completed.
• There is no additional tax liability (when the tax liability is adjusted with TDS credit/losses and you do not have any additional tax liability).
• If you are looking forward to changing the tax regime between old to new or vice-versa.

What is the due date for filing under ITR-U?

The due date of filing a belated return, i.e., 31 December of the assessment year, in the current case, 2023. It means if you did not furnish your returns before 31 July, you could file a return before 31 December of the assessment year 2023.

However, in the case of an updated or revised return, in the case when you have to update your income tax return, rectifying wrong information, errors, or omissions, the due date for the same would be 24 months from the relevant assessment year.

For example, in the present scenario, for the revised return for the financial year 2022-2023 and assessment year 2023-2024, the due date for a revised return would be 31 March 2025 (24 months after the end of the relevant financial year).

Additional tax liability while filing ITR-U

While filing ITR-U, you have to pay additional tax liability depending on the date of filing a belated or updated return. Additional tax liabilities are as follows:

• ITR-U filed within 12 months from the end of relevant AY: 25% of additional tax + interest
• ITR-U filed within 24 months from the end of relevant AY: 50% of additional tax + interest

Conclusion

It is better to plan your tax before the due date so that you can save tax and protect yourself from paying additional taxes, penalties, or late fees. However, due to any justifiable reason, you can rectify your mistakes or file a belated return under section 139 (8A) of the income tax act 1961.