ITR Form U: How To File Updated Income Tax Returns If You Have Missed The Jan 15 Deadline

The last date to file Belated Income Tax Returns lapsed on January 15. Taxpayers who missed the deadline have the option to file Updated Income Tax Returns by March 31, 2027, for the assessment year 2024-25 (financial year 2023-24).

What Is The Updated ITR Facility

The facility to file Updated ITR was announced as a part of the Union Budget 2022. Section 139(8A) with section 140B of the Income Tax Act. The Income Tax Act allows an updated return to be filed even if the person has filed the original, belated or revised return for the relevant assessment year. Taxpayers can file their Tax Returns by filing out ‘ITR Form U’.

The facility allows taxpayers to file an "Updated Return” within 24 months from the end of the relevant assessment year, whether or not an original, revised or belated return has been furnished under section 139 for the Assessment Year.

How Is ITR-U Useful?

If you have not filed your ITR on or before the original deadline July 31, 2024, the Belated ITR deadline on January 15, 2025, you can file returns for 2023-24 (assessment year 2024-25) by March 31, 2027. In case you have not filed your ITR for FY 2021-22 (AY 2022-23) or wish to correct errors, you can submit an updated ITR by March 31, 2025.

However, taxpayers must note that they have to pay an additional 25 per cent of the aggregate of tax and interest due if the updated ITR is filed within 12 months.

Who Can File Updated Returns

Taxpayers can file for an updated income tax return within 24 months from the end of the relevant assessment year in the following cases:

• If the Return was previously not filed

• If the Return was filed but the income was not reported correctly

• The rate of tax was not correct

• Wrong heads of income were chosen:

1. To reduce carried forward loss

2. To reduce unabsorbed depreciation

3. To reduce tax credit u/s 115JB/115JC

Taxpayers must note that you cannot file updated returns to lower tax liability in the original return and claim refunds. Additionally, taxpayers cannot file updated returns if any search, survey or assessment is underway. The e-filing portal does not allow taxpayers to file ITR under section 139(8A) more than one time.

How To File Updated Returns Using ITR-U

The process of filing updated returns has three key parts, taxpayers need to download the ITR-U Excel Utility, Fill The Excel Utility and save it as a JSON file and then lastly upload and verify the file on the e-filing portal.

How To Download ITR-U Excel Utility

1. Go to the e-filing portal home page and click on the downloads button on the left-hand side of the screen

2. Click on the Income Tax Returns option

3. Choose the relevant assessment year from the drop-down menu

4. Click on the relevant ‘Common Offline Utility’ option

5. Select the ITR applicable to you

6. Click on ‘Utility Excel Base’ and an Excel file will be downloaded to your system

How To Fill Excel Utility And Generate JSON File

1. Open the Excel Utility you have downloaded to your system

2. Open the e-filing portal and select the e-File Income Tax Return option

3. Go to Download Pre-Fill Data

4. Click on Calculate Tax in the Excel utility

5. Make sure you have no taxes due before filing the updated return

6. Click on ok to see the tax calculation

7. Make the payment of taxes based on the tax calculation

8. Enter the details of the Challan Paid such as the BSR Code, Date of Deposit, Serial

9. Number of the Challan and Amount at Serial Number 14 of the Excel file

10. Generate the JSON file

How To Upload And Verify JSON File On E-Filing Portal

1. Login to the e-filing portal and go to eFile

2. Click on Income Tax Return And Click File Income Tax Return

3. Choose the assessment year

4. Select section 1398 A Updated return in Filing type

5. Select whether you are audited under section 44A and the ITR type

6. Click on the Continue button and attach the JSON file created

7. Proceed to verification and select the verification method

8. Click on the continue button and select the appropriate verification

9. Click Submit, taxpayers must note that once you submit the return you can not modify the details

10. You will get a success message saying you have successfully filed and verified your return

11. Download the receipt for the acknowledgement number.