Good news for taxpayers. Missed the 31 July and 31 Dec deadlines? File ITR U ( Complete Information )

What is Form ITR-U

Have you ever made a mistake while filing a return or have forgotten to file a return and then realized you should have filed the return because either you need to submit it to some authority or bank for a loan? There is some good news for you.

ITR-U came into force on 1 April 2022. The government has introduced Sec 139 (8A) under the income tax act which allows you to update your return within two years, and the tenure of two years will be counted from the end of the year in which you filed your original return i.e. the assessment year. The same goes for the return which you have missed (Eg. You can file ITR-U of FY 2022-2023 till march 2025). The purpose behind the introduction of this form is to provide simplicity to taxpayers. There are certain technicalities and who cannot file this return, lets’s understand those technicalities.

Who can file Form ITR-U

1. A person who has incorrectly disclosed his income Eg: Entered income in the wrong head etc.
2. A person who has missed out on any income details (Eg: You forgot to mention house property income etc.)
3. Most important a person ” Who has not filed his return i.e. missed return filing deadline and belated return deadline.

Who is not eligible to file Form ITR-U

1. Filing Nil return or loss return.
2. Claiming a refund or enhancing the same.
3. Lowering the tax liability.
4. The updated return has already been filed.

Additional tax while filing ITR-U

One disadvantage of ITR-U is the additional tax liability.