Also read what is ITR-U and how to file it.
Table of Contents
Who can file ITR-U?
An updated ITR i.e., ITR-U can be filed by individuals who had filed an original ITR by the due date or filed a revised ITR or belated ITR or missed filing any ITR.
When is the last date to file ITR-U?
“The deadline for filing an updated return i.e., ITR-U is within 24 months from the end of the relevant assessment year (AY). So, in the current FY 2023-24 (AY 2024-25), an updated ITR (ITR-U) can be filed by an individual for ITRs pertaining to FY 2020-21 (AY 2021-22) and FY 2021-22 (AY 2022-23),” says Sanjoli Maheshwari, Executive Director, Nangia Andersen India, a tax and business consultancy company.
|Assessment Year||Deadline for filing ITR-U|
|AY 2020-21||31st March 2023|
|AY 2021-22||31st March 2024|
|AY 2022-23||31st March 2025|
|AY 2023-24||31st March 2026|
Source: Nangia Andersen India
“Also, if deadline for filing revised return or belated return has not passed, then updated ITR i.e., ITR-U cannot be filed. ITR-U can be filed only when the time limit for revised return and belated return is over / lapsed,” says Maheshwari.The deadline for filing original ITR is July 31 for individuals not liable for income tax audit. Further an individual can also file a revised ITR from August 1 till December 31 of the relevant assessment year unless the assessment of the original ITR has already been completed by the income tax department. If the assessment has already been completed then, the deadline for revised ITR would be three months from the completion date of assessment. In case an individual has not filed original ITR, then he/she may file a belated ITR from August 1 till December 31.This means for FY 2022-23 (AY 2023-24), the deadline to file revised ITR is December 31, 2023, unless the original ITR has already been assessed by the income tax department. ITR-U cannot be filed unless the deadline for filing revised and belated ITR has already passed. This means individuals can only file ITR-U for FY 2022-23 (AY 2023-24) from April 1, 2024 till March 31, 2026.
When ITR-U cannot be filed?
Tax experts say that in certain cases, individuals cannot file ITR-U. In these cases, either an original ITR by the due date has to be filed or a revised ITR. According to Chartered Accountant Ruchika Bhagat, MD, Neeraj Bhagat and Co, a Delhi- based CA firm, here are some of the instances where ITR-U cannot be filed:
- Where you are filing NIL return or a return with loss
- Where there is no additional tax liability while filing ITR-U
- Where filing ITR-U results in lowering of tax liability
- For claiming or enhancing the tax refund amount
- Search proceeding- under section 132 has already been initiated.
- A survey is already being conducted under section 133A.
- Books, documents or assets are seized or called for by the Income Tax authorities under section 132A.
- If the assessment or reassessment or revision or re-computation of the ITR is either pending or completed
How much is the penalty for filing an updated ITR?
“If you file within one year from the end of the relevant assessment year, you will need to pay an extra 25 percent of the tax and interest owed on unreported income. However, if you file after one year but within two years of the relevant assessment year, the penalty increases to 50 percent of the additional tax and interest due,” says Archit Gupta, founder, Clear, an ITR filing platform.
|Filing the ITR-U within 12 months from the end of the relevant assessment year||25% of the additional tax liability + Late filing fees under section 234F|
|Filing the ITR-U within 24 months from the end of the relevant assessment year||50% of the additional tax liability + Late filing fees under section 234F|