New Delhi. The updated tax return is called ITR-U or Updated ITR. It was introduced in Budget 2022 under Section 139(8), under which the government gave taxpayers an option to file their updated returns within a specified time frame. If a taxpayer has not filed the ITR by the due date or there are some updates (such as under-reporting of income or correction of wrong reporting), he should file an updated return.
Who can file ITR-U or Updated ITR?
An ITR-U or updated ITR can be filed by the person who filed the basic ITR within the due date or who filed the ITR late or missed to file any ITR, they can also file this ITR.
Deadline for filing updated returns
Updated ITR can be filed within 2 years from the end of Assessment Year (AY). ITR-U for current financial year 2023-24 (AY 2024-25) or updated ITR can be filed for financial year 2020-21 (AY 2021-22) and financial year 2021-22 (AY 2022-23).
Is there any penalty for ITR-U?
If you have unreported income, i.e. income that has not been declared, the tax paid on it and the interest may be taxed at 25 percent. This penalty is also payable within 12 months of the end of the assessment year. On the other hand, when the ITR-U is filed within one year or two years of the assessment year, the penalty increases by 50 percent.
How to file updated return?
You can submit at eportal.incometax.gov.in.