ITR-U | What is ITR-U? Eligibility and How to verify ITR-U?

In an effort to promote voluntary tax compliance and provide an opportunity to taxpayers who missed declaring income earlier, the Income Tax Department introduced ITR-U, a form for filing Updated Income Tax Returns.

Introduced under Section 139(8A) of the Income Tax Act via the Finance Act, 2022, ITR-U allows taxpayers to update their income tax return within 24 months from the end of the relevant assessment year. Whether you missed filing a return altogether or underreported your income, ITR-U gives you a second chance—without waiting for a notice from the department.

What is ITR-U?

The government introduced the concept of ITR-U or Updated Income Tax Return in the Union Budget 2022. ITR-U or Income Tax Return-Updated is a form that allows you to rectify errors and update your previous ITR. ITR-U is an important form for those who have not filed income tax return or have made any mistake while filing ITR. Filing ITR-U comes under Section 139(8A) of the Income Tax Act, section 139(8A) gives you a chance to update your ITR within two years. The period for which the two years will be calculated starts from the end of the year in which the original return was submitted.

Eligibility to File ITR-U 

Individuals with errors or omissions in the returns listed can file updated returns.

Updated Return can be filed under the following circumstances:

For not giving correct information about income

Wrong income category selected.

Tax was paid at an inaccurate rate.

In case of reducing unabsorbed depreciation.

To reduce the carried forward loss.

In case of reducing the tax credit under section 115JB/115JC.

Who is not eligible to file ITR-U

ITR-U cannot be filed if :

Updated return has already been filed

To file nil return.

If a survey has been conducted under section 133A.

If there are no additional tax liabilities, it means that your tax liability is offset by TDS credit, losses, and there are no other outstanding tax liabilities.

In cases where property, books or documents have been seized or seized by the Income Tax authorities under Section 132A.

If search proceedings are initiated against you under Section 132.

Tax liability is reduced in case of updated tax returns.

Who Can File ITR-U?

You can file ITR-U if:

• You missed filing the original ITR.
• You underreported income.
• You wrongly declared income.
• You chose the wrong heads of income.
• You reduced tax liability incorrectly.
• You increased loss or claimed an incorrect refund.

How to verify ITR-U?

To verify ITR-U, follow these steps:

Non Tax-Audit Cases

Aadhaar OTP

Through electronic verification code.

Through Digital Signature Certificate.

Tax Audit Cases

Through Digital Signature Certificate 

1. What is ITR-U?

ITR-U is an updated income tax return introduced under Section 139(8A), allowing taxpayers to voluntarily declare missed or underreported income within 24 months from the end of the assessment year.

2. Can I revise or correct ITR-U once submitted?

No. Once you file ITR-U, it cannot be revised or corrected. File only after ensuring accuracy.

3. Can I file ITR-U for multiple years?

Yes, you can file ITR-U for different assessment years, but only once per year. Refiling for the same AY is not allowed.

4. Is it mandatory to pay tax before filing ITR-U?

Yes. You must pay all tax dues, interest, and additional tax before submitting the updated return. Otherwise, the return may be treated as defective.

5. Can I file ITR-U to claim a refund or reduce tax liability?

No. ITR-U cannot be used to:

• Claim or increase refunds
• Reduce total tax liability