Filing taxes on time is crucial, but mistakes and delays happen. To promote voluntary compliance, the Indian government introduced the ITR-U, or Updated Return, under Section 139(8A) of the Income Tax Act, 1961.
What is ITR-U?
ITR-U allows taxpayers to update or file their return within 24 months from the end of the relevant assessment year—even if no previous return was filed. It provides a chance to rectify errors or omissions.
Who Can File ITR-U?
- Missed filing original, belated, or revised ITR.
- Discovered under-reported income.
- Wish to declare omitted income.
Who Cannot File ITR-U?
- Cases where a return would result in a refund.
- Involves search/seizure/survey operations.
- Tax liability decreases.
- Under litigation or scrutiny.
Additional Tax Payable:
- 25% of additional tax + interest (within 12 months).
- 50% if filed between 12-24 months.
Steps to File ITR-U:
- Login to www.incometax.gov.in
- Navigate to “e-File” > Income Tax Return > File Income Tax Return
- Choose updated return (ITR-U)
- Fill required details, pay additional tax, and submit.
Benefits:
- Avoids penalty.
- Promotes transparency.
- Legal compliance.