• Notification Date: 06-01-2024
• Notification No: N/A

If you have missed the Dec 31 Income Tax Returns Deadline, here’s what you should do

If you missed the December 31 deadline for filing your Income Tax Returns (ITR) for AY 2023-24, there is no need to worry! You can still rectify errors and update your ITR using the Updated Income Tax Return, known as ITR-U. The Income Tax Portal, updated by the Central Board of Direct Taxes (CBDT), now facilitates the electronic filing of revised Income Tax Returns (ITRs) for the Assessment Year (AY) 2023-24 or Financial Year (FY) 2022-23. Taxpayers are empowered to submit updated ITRs under Section 139(8A) for the ongoing assessment year. 

Section 139(5) of the Income Tax Act, 1961, grants individuals the opportunity to amend returns previously filed under Section 139(1) or Section 139(4) of the Income Tax Act. This provision allows for the inclusion of omitted entries or correction of errors in the initially filed return. 

In this article, we’ll guide you through the process and provide essential information on how to file ITR-U after the due date for filing the Income Tax Returns ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 or ITR-7.  

What is ITR-U? 

ITR-U, or Updated Income Tax Return, allows taxpayers to correct errors or omissions in their previous ITRs within two years from the end of the relevant assessment year. Introduced in the Union Budget 2022, this form aims to optimize tax compliance without invoking legal actions and repercussions. 

Who Can File ITR-U under Section 139(8A)?  

Any individual who has made errors or omissions in their original return, belated return, or revised return is eligible to file ITR-U. Common scenarios include not filing the return, incorrect income declaration, choosing the wrong head of income, paying tax at the wrong rate, reducing carried forward loss, unabsorbed depreciation, or tax credit under specific sections. 

Eligibility Criteria for ITR-U:  

1. The updated return has not been filed previously 

2. Not for filing nil return/loss return 

3. Not applicable for claiming/enhancing the refund amount 

4. Should not result in lower tax liability 

5. No search proceedings initiated, or survey conducted by the Income Tax authorities. 

Time Limit to File ITR-U: 

The deadline for filing ITR-U is 24 months from the end of the relevant assessment year. For instance:  

a. FY 20-21 (AY 2021-22): File by 31st March 2024  

b. FY 21-22 (AY 2022-23): File by 31st March 2025  

c. FY 22-23 (AY 2023-24): File by 31st March 2026 

Additional Tax Payment for ITR-U:  

When filing ITR-U, an additional tax of 25% or 50% on the tax amount is applicable, depending on whether it is filed within 12 or 24 months from the end of the relevant assessment year.  

How to File Form ITR-U:  

According to Income Tax regulations, you must submit the revised return (ITR-U) alongside an updated version of the relevant ITR form (either of the forms ITR 1 – 7). 

1. Enter your PAN, name, address, email ID, mobile number, and date of birth in Part A – Personal Information. 

2. Enter your Aadhaar number and link it with your PAN if not already done. 

3. Select your status (individual/HUF/firm/company) and residential status (resident/non-resident) in Part B – Status. 

4. Select your original/belated/revised ITR form number (ITR 1 – 7) and enter your acknowledgement number and date in Part C – Original/Belated/Revised Return Details. 

5. Select the reason for filing the updated return from the given options in Part D – Reason for Filing Updated Return.  

6. Provide the details of additional earnings in each head of income. A detailed break-up of each head is optional. 

7. Enter the income declared per the original/belated/revised return and the updated income as per the updated return in Part E – Computation of Income and Tax Liability.  

8. Share the total income. You may find this from ‘Part B-TI’ of the ITR form (1-7) submitted by you. 

9. Enter the tax payable as per the original/belated/revised and updated returns. The difference between the two is the additional tax payable.  

10. Enter the details of tax deducted at source (TDS), tax collected at source (TCS), advance tax, and self-assessment tax paid in Part F – Details of Taxes Paid.  

11. Enter the details of your bank accounts at any time during the previous year in Part G – Bank Account Details. 

12. Enter your verification details and sign the Part H – Verification declaration.  

13. Attach the updated version of the ITR form (1-7) along with Form ITR-U and submit it online on the Income Tax portal. 

Verification of ITR-U:  

For non-tax audit cases, use a Digital Signature Certificate (DSC), and for tax audit cases, utilize the Electronic Verification Code (EVC).