What is ITR U?
ITR U is a form introduced by the Income Tax Department of India that allows taxpayers to file an Updated Return. If you made a mistake in your original tax return or forgot to report some income, you can correct it using ITR U. This form was introduced under Section 139(8A) of the Income Tax Act, 1961.
Latest Update on ITR U:
The Government of India in its budget 2025 has now announced that Updated Return can be filed upto 4 years
Why is ITR U Important?
Fix Mistakes: If you missed reporting income or claimed incorrect deductions, you can correct them.
Avoid Penalties: Filing an Updated Return voluntarily can help you avoid legal action.
Improve Tax Compliance: It ensures your tax records are accurate and up to date.
Who Can File an Updated Return?
You can file ITR U if:
You missed declaring some income in your original return.
You filed a wrong ITR form earlier.
You want to correct errors in your past tax return.
Who Cannot File ITR U?
You cannot use ITR U if:
You are filing a nil return or a loss return.
You want to claim a refund.
There are ongoing tax investigations against you.
Time Limit for Filing ITR U
You can file an Updated Return within 2 years from the end of the relevant assessment year. For example, for Assessment Year 2023-24, you can file ITR U until March 31, 2026.
Additional Tax and Penalty
When filing ITR U, you may have to pay an extra tax:
Within 12 months from the end of the assessment year: 25% of extra tax payable.
After 12 months but before 24 months: 50% of extra tax payable.
How to File ITR U: Step-by-Step Guide
Log in to the Income Tax e-filing portal.
Go to ‘e-File’ → ‘Income Tax Return’ section.
Select ‘Updated Return under Section 139(8A)’.
Fill in the required details, including the additional income.
Compute tax liability and pay any additional tax.
Verify and submit the return online.
Benefits of Filing an Updated Return
Avoids tax disputes and penalties.
Ensures your tax records are accurate.
Builds trust with the Income Tax Department.
Frequently Asked Questions (FAQs)
Q1. Can I claim a refund using ITR U? No, you can only file ITR U if you have extra tax liability. It cannot be used to reduce tax liability or claim refunds.
Q2. Can I file ITR U more than once for the same year? No, you can file only one Updated Return per assessment year.
Q3. Is there a deadline for filing ITR U? Yes, you can file within 2 years from the end of the relevant assessment year.
Conclusion
Filing an Updated Return using ITR U is an excellent opportunity for taxpayers to correct errors and avoid penalties. If you missed reporting income or made mistakes in your tax return, use ITR U to stay compliant. Make sure to file your Updated Return on time to avoid additional tax penalties.
For professional assistance, consider consulting a tax expert to ensure accurate filing.
About the Author
CA Bhuvnesh Kumar Goyal
Fellow Chartered Accountant, LLB, B.com, Forensic Accountant and Fraud Detection Professional
CA Bhunvesh Kumar Goyal is a seasoned Chartered Accountant with over 15 years of experience in taxation, auditing, and business advisory. He specializes in Income Tax, GST, MSME advisory, startups, statutory audits, internal audits, and income tax audits. He also provides expert guidance on company registration, business registration, and helping entrepreneurs choose the right form of business.
Beyond traditional accounting, he has expertise in ESG (Environmental, Social, and Governance), BRSR (Business Responsibility and Sustainability Reporting), and the Companies Act. His deep knowledge and practical approach help businesses stay compliant while optimizing their financial and operational efficiency.
With a passion for guiding businesses, startups, and entrepreneurs, CA Bhunvesh Kumar Goyal is committed to delivering expert financial solutions with clarity and precision.