ITR- U Return Filing
- Art Teacher
- London, UK
- 5-7 Hrs
Ever filed your ITR and later realized you made a mistake? Or worse—forgot to file it altogether? Thanks to the Income Tax Department’s new provision under Section 139(8A), where now you have a second chance through ITR-U (Updated Return). Introduced as part of the Union Budget 2022, ITR-U allows taxpayers to voluntarily disclose missed income or correct errors in their original, belated, or revised returns—within 24 months from the end of the relevant assessment year. It’s a revolutionary move to encourage tax compliance without fear of harsh penalties or prosecution. However, filing ITR-U isn’t just a redo—you must pay additional tax (25% or 50%) on the due tax, depending on the timing of the update. You also cannot use ITR-U to claim additional refunds, carry forward losses, or reduce tax liabilities—it’s strictly for increasing declared income.
- PAN card
- Aadhaar card
- Original ITR (if filed) – for cross-verification
- Form 26AS / AIS / TIS – to reconcile income & taxes
- Proof of additional income (bank statements, invoices, etc.)
- Details of TDS, TCS, and advance tax paid
- Computation sheet of total tax payable and additional tax (25% or 50%)
- Digital Signature Certificate (DSC) or EVC-enabled device
- Log in to Income Tax e-Filing Portal
- Navigate to e-File > Income Tax Return > File Income Tax Return
- Choose relevant Assessment Year and select ITR-U as the return type
- Select the reason for updating the return (e.g., income not reported earlier)
- Fill in only the additional income details (no full computation needed)
- Compute additional tax (25% if filed within 12 months; 50% if 12-24 months)
- Pay taxes via Challan ITNS 280, under the correct head
- Submit the return using EVC/DSC
- Download the acknowledgement (ITR-V)
FAQs
Any taxpayer who missed filing a return or needs to update declared income for a previous year can file ITR-U. However, ITR-U cannot be filed in certain situations, such as if it will reduce tax liability, increase refund, etc.
The additional tax under ITR-U is 25% of additional tax and interest if filed within 12 months, and 50% if filed between 12-24 months. For filings in the 3rd and 4th year (as per the new law), the additional tax is even higher at 60% and 70% respectively of the additional tax and interest due.
If the income in the updated return exceeds audit thresholds, a tax audit as per the Income Tax Act is applicable on the updated return income.
If the original return is under scrutiny or reassessment, ITR-U cannot be filed for that assessment year.
Tax should be paid via Challan ITNS 280, selecting "Self-Assessment Tax" and appropriate AY.
ITR-U can be filed for foreign income or assets, but not in cases where it would result in a refund or reduce tax liability; all eligible income, including foreign sources, should be reported accurately.