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ITR U – What is ITR-U Form

ITR-U or Updated Income Tax Return is the form that allows you to rectify errors or omissions and update your previous ITR. It can be filed within two years from the end of the relevant assessment year. The government introduced the concept of updated returns in the Union Budget 2022.

Filing belated or revised ITRs after 31st December of the AY is not possible. However, you can file an updated return using the ITR-U form from January 1st of AY, which is used to correct minor errors or omissions in your original ITR. With ITR-U, you cannot reduce the taxes due, claim refunds, or increase losses.

When the updated return can be filed??

An Updated Return can be filed in the following cases:
1. Did not file the return. Missed return filing deadline and the belated return deadline
2. Income is not declared correctly
3. Chose wrong head of income
4. Paid tax at the wrong rate
5. To reduce the carried forward loss
6. To reduce the unabsorbed depreciation
7. To reduce the tax credit u/s 115JB/115JC

When the updated return can not be filed??

An Updated Return can not be filed in the following cases:
1. Updated return has already been filed
2. For filing nil return
3. For filing return of loss
4. For claiming/enhancing the refund amount.
5. When updated return results in lower tax liability
6. Search proceeding u/s 132 has been initiated against you
7. A survey is conducted u/s 133A
8. Books, documents or assets are seized or called for by the Income Tax authorities u/s 132A.
9. If assessment/reassessment/revision/re-computation is pending or completed. If there is no additional tax outgo (when the tax liability is adjusted with TDS credit/ losses and you do not have any additional tax liability, you cannot file an Updated ITR)

Time limit to File updated return (ITR-U):

The time limit for filing ITR-U is 24 months from the end of the relevant assessment year. You should note that for the AY 2022-23, the last date to file ITR-U is 31st March 2025. However, for the return that your file for AY2024-25, the last date to file ITR-U is 31st March 2027.

It should also be noted that additional tax is also applicable depending on the time of filing of ITR-U.

CBDT has notified additional conditions u/s 139(1) for compulsory return filing under following situations:

👉🏿 Turnover from business exceeds Rs 60 lacs

👉🏿 Gross receipts from Profession exceeds Rs 10 lacs

👉🏿 TDS/TCS exceeds Rs 25000

👉🏿 Deposit in Savings bank account is Rs 50 lacs or more

ઈન્શ્યોરન્સ વિનાનું બાઈક ચલાવી રહેલા યુવકે અકસ્માત કર્યો, હવે ચૂકવવા પડશે 49 લાખ શું તમે પણ ઈન્શ્યોરન્સ વિનાનું વાહન ચલાવો છો? તો આ કિસ્સો વાંચીને હવે થઈ જજો સાવધાન, નહીંતર પસ્તાવું પડશે

ITR filing: Check Form 26AS to confirm tax credits

With the introduction of Section 112A, a lot of information with regards to your investments needs to be filled in the ITR

This is that time of the year, where every taxpayer is busy looking into their transactions for the last year and preparing their income tax return (ITR). Salaried taxpayers should ensure they have their Form 16 and the credit of taxes are duly and correctly reflecting in Form 26AS.Section 115BAC introduced vide Finance Act 2020 provides an option to the taxpayers to choose between the new and old tax regime.

While the new regime provides for lower tax rates, it takes away the option to claim certain tax exemptions and deductions allowable in the old tax regime. Since the selection of option is to be intimated at the time of filing of the return, the section provides a benefit to the salaried taxpayers wherein the taxpayer can choose a different regime at the time of filing of return than what was opted for with the employer for the purpose of deduction of tax

New and old tax regime
In a case where taxpayer opted for the old regime with the employer but could not make investment as declared under Section 80G of the Income-tax Act, 1961 (the Act) and realises that the new regime would be more beneficial to him, he can still opt for new regime while filing the ITR and any refund due in such a case can be claimed. Therefore, one should analyse well in advance if any change in the regime is required while filing ITR.

Further, one must collect bank statements and bank interest certificates and reconcile the same with tax credits available in Form 26AS. Even though the entire process of taxation is digitalised, even the slight possibility of error of any short tax credit can be avoided. Also, keeping your medical premium receipts, home loan interest certificates, and donation receipts handy will help you ensure that you do not miss out the benefit of any deduction. For salaried individuals, if any deduction was left to be declared in Form 16, the same can be additionally claimed when filing ITR.

Books of accounts
In addition, individuals having income from business and/or profession must check whether they are required to prepare books of accounts under the provisions of the Act. Non-adherence to compliances for maintaining books of accounts can result in making your return defective. Further, with the introduction of Section 112A, a lot of information with regards to your investments needs to be filled in the return form. All the capital gain statements must be collected forehand such that no information is missed while filing the return.

Now that the department has automated its process for issuance of refunds, it is important to ensure that your bank account is pre-validated on the new income tax portal. Also, choose the correct return form so that the complete and correct details can be provided. The interface for filing has been completely revamped on the income tax portal to make it more user-friendly and interactive. _It is advisable to complete your filings without much ado to avoid any penalty, interest and last-minute rush. So, choose your forms wisely and do not hesitate to contact your tax advisors in case of ambiguity.

Contact us for any advise help or suggestion. My contact number is 9428001257.

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ઈન્શ્યોરન્સ વિનાનું બાઈક ચલાવી રહેલા યુવકે અકસ્માત કર્યો, હવે ચૂકવવા પડશે 49 લાખ indiaશું તમે પણ ઈન્શ્યોરન્સ વિનાનું વાહન ચલાવો છો? તો આ કિસ્સો વાંચીને હવે થઈ જજો સાવધાન, નહીંતર પસ્તાવું પડશે

1) Get a lower price than physical gold when applied online
2) Get a fixed interest rate
3) No holding or storage cost

Digital Signature (DSC) Update:

Kindly note that Class 2 DSC will be discontinued w.e.f 1st Jan 2021.

All r requested to renew their DSC at the earliest b4 31st Dec.

All DSC's which are made b4 31st Dec 2020 will be usable till its validity, so plan accordingly.

For details contact us on M : 9428001257.