Basic of Income tax return

ITR-U – What is ITR-U & How To File An Updated Return under Section 139(8A)

Using ITR-U, you can revise your tax return within a specific timeframe, as Section 139(8A) of the Income Tax Act allows. It's important to remember that ITR-U is different from the regular tax return forms you use for your initial filing, like ITR-1 or ITR-2.

Krishna Gopal Varshney

An editor at Myitronline

Apr 30, 2024
5 min read
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ITR-U – What is ITR-U & How To File An Updated Return under Section 139(8A)

What is ITR-U?

ITR-U is a special form used to correct mistakes or update your income tax return in India. It's like a do-over form that lets you fix errors or provide missing information from your original tax filing.

You might need ITR-U if you realize you made errors, forgot to report some income, or gave incorrect details in your initial tax return. This form is your way to set things right.

When you file ITR-U, you'll need to provide accurate details from your original return, explain the changes you are making, and submit the updated return electronically through the Income Tax Department's official website or authorized platforms. Just be sure to meet the deadline to avoid fines or legal issues.

Who Can File ITR-U?

1. Return previously not filed: If you haven't filed your tax return before, you can use ITR-U to report your income and meet your tax obligations.

2. Income not reported correctly: If you made a mistake in reporting your income, ITR-U allows you to correct it and provide accurate income details.

3. Wrong heads of income chosen: If you selected the wrong category for your income, ITR-U lets you fix that and allocate your income correctly.

4. Reduction of carried forward loss: When you need to reduce carried forward losses, ITR-U helps you make the necessary adjustments.

5. Reduction of unabsorbed depreciation: In cases where you have unabsorbed depreciation, ITR-U allows you to reduce it correctly.

6. Reduction of tax credit under Sections 115JB/115JC: If you need to decrease your tax credit under Sections 115JB/115JC, ITR-U is there to help you do just that.

7. Wrong rate of tax: If you applied the wrong tax rate, ITR-U enables you to correct it for an accurate calculation of your tax liability.

How to File Form ITR-U: Step-by-Step Guide

Part A – Providing Basic Details (ITR-U)

1. Start by filling in your PAN, Aadhaar Number, and the Assessment Year for which you are submitting the updated return.

2. Let the form know whether you have filed a return for this assessment year under section 139(1) or any other section.

3. If you have filed a return before, provide essential details, such as the form used, the acknowledgment or Receipt Number, and the date when you filed the original return.

4. Make sure you are eligible to file an updated return; ensure that your situation allows for filing an updated return.

5. Select the appropriate ITR form for filing the updated return.

6. Clearly state the reason for updating your income, like if you haven't filed returns before, made errors in income reporting, selected the wrong income category, or other reasons.

7. Specify whether you are filing the updated return within 12 months from the end of the relevant assessment year or between 12 to 24 months from the end of the relevant assessment year.

8. Indicate if you are filing the updated return to reduce carried forward loss, unabsorbed depreciation, or tax credit.

Part B – Calculating Updated Tax Liability & Income (ITR-U)

1. Start by specifying the category of income under which you're reporting any additional income in the updated return.

2. If you've filed a return before, mention your total income as per the last valid return.

3. Calculate the total income as per Part B-TI of the updated return.

4. Determine the amount you need to pay or the refund you're eligible to receive based on the updated return.

5. Take into account any amount you need to pay or claim as a refund that was mentioned in your last valid return.

6. Include any penalty fee for not submitting the income return on time, as per section 234F.

7. If applicable, add the regular assessment tax to your calculations.

8. Calculate the total tax liability on the additional income.

9. Determine how much additional income tax you owe based on the prescribed tax rates.

10. Calculate the net amount you either need to pay or are eligible to receive as a refund.

11. Report any taxes you've already paid under section 140B.

12. Figure out the tax amount you owe by subtracting the taxes you've paid from the net amount payable.

13. Provide details about tax payments made under section 140B, as well as payments of Advance Tax, Self-Assessment Tax, or Regular Assessment Tax that were not claimed in your earlier return.

14. Keep in mind that some credits or reliefs may not be granted again as per section 140B(2).