ITR-U means Updated Income Tax Return. As the name suggests, if a taxpayer has missed any details while filing ITR or has made a mistake while filing the return, he can file an updated ITR to correct it and file it again.
Updated ITR protects taxpayers from notices and action from the Income Tax Department which may be taken due to incorrect or incomplete information. Let us tell you that if the Income Tax Department finds any mistake in your filed return, it will send you a notice and you may also have to pay a heavy penalty for tax evasion. Therefore, if you have made any mistake while filing the return, file the updated ITR as soon as you come to know about it.
Who can file updated return (ITR-U)?
Every taxpayer can file updated ITR (ITR-U). That is, ITR-U can also be filed by those taxpayers who have not been able to file their ITR on time. Under the rules of Income Tax, you can file updated ITR within 24 months from the end of the assessment year. For example, if we talk about assessment year 2023-2024, then its updated return can be filed till 31-03-2026.
Is there any penalty for updated returns?
If you have not reported your income, that is, 25% tax can be levied on the tax and interest payable on the income which has not been disclosed. This penalty also has to be paid within 12 months of the end of the assessment year. On the other hand, if you file an updated return within 12 to 24 months, then the penalty increases to 50%.
ITR-U means Updated Income Tax Return. As the name suggests, if a taxpayer has missed any details while filing ITR or has made a mistake while filing the return, he can file an updated ITR to correct it and file it again.
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Updated ITR protects taxpayers from notices and action from the Income Tax Department which may be taken due to incorrect or incomplete information. Let us tell you that if the Income Tax Department finds any mistake in your filed return, it will send you a notice and you may also have to pay a heavy penalty for tax evasion. Therefore, if you have made any mistake while filing the return, file the updated ITR as soon as you come to know about it. Â
Who can file updated return (ITR-U)?
Every taxpayer can file updated ITR (ITR-U). That is, ITR-U can also be filed by those taxpayers who have not been able to file their ITR on time. Under the rules of Income Tax, you can file updated ITR within 24 months from the end of the assessment year. For example, if we talk about assessment year 2023-2024, then its updated return can be filed till 31-03-2026.
Is there any penalty for updated returns?
If you have not reported your income, that is, 25% tax can be levied on the tax and interest payable on the income which has not been disclosed. This penalty also has to be paid within 12 months of the end of the assessment year. On the other hand, if you file an updated return within 12 to 24 months, then the penalty increases to 50%.
Late fees for filing returns Â
- If you file ITR after the last date of filing return, then you have to pay late fee.
- If your annual income is less than Rs 5 lakh, then you will have to pay Rs 1,000 as late fee.
- If your annual income is more than Rs 5 lakh, then you will have to pay Rs 5,000 as late fee.
Options to file updated ITR
All types of taxpayers i.e. Individuals, HUFs, Firms/LLPs, Companies, AOPs, BOIs etc. are eligible to file updated returns. However, they will have to specify the reason for updating the ITR. Hence, they will have to choose one of the options given below.
- ITR not filed earlier
- Correct information about income was not given
- Wrong income option selected
- Reduction in tax credit under section 115JB/115JC
- Â Wrong tax rate
- Others
Where to file ITR-U?
You can file it by visiting eportal.incometax.gov.in. Let us tell you that in some cases you cannot use ITR-U. In this, ITR-U cannot be filed for nil and loss returns, claiming or increasing refund, or reducing tax liability from previously filed returns.
How many times can TR-U be filled?
Updated Income Tax Return (.TR-U) can be filed any time within two years after the end of the financial year for which ITR-U is to be filed. But keep in mind that apart from ITR, it can be filed only once.
