Updated ITR filing: Who can file, documents required and all you need to know

The last date for filing updated income tax return (ITR) or ITR-U for financial year (FY) 2020-21 (assessment year 2021-22) for taxpayers is March 31, 2024. As the deadline is approaching, here are the things you should know.

What is the updated ITR and the time limit for filing it?

ITR-U is a type of tax return that allows taxpayers to file or update an ITR. It is intended to encourage voluntary tax compliance and avoid consequences if the tax authorities detect omissions.

The time limit for filing ITR-U is two years from the end of the relevant assessment year. The filing of an updated return is optional for the taxpayer. The ITR can be updated for the following reasons:

• No ITR filed
• Income not reported correctly
• Wrong heads of income chosen
• To reduce the carried forward loss
• Reduction of unabsorbed depreciation
• To reduce the tax credit under section 115JB/115JC
• Tax paid at the wrong rate
• Others

Which details and documents are needed to file an updated return?

While filing an updated return, the taxpayer is required to provide certain documents and details in the relevant ITR forms: Schedule 'Part A Gen_139(8A)' and 'Part B ATI'. The following documents and details need to be submitted:

• Basic information such as name, Aadhaar number and PAN
• Detail of previous ITR, if filed, like section, ITR form, date of filing, and acknowledgement number
• Relevant ITR form selected for updated return
• Reasons for filing ITR-U
• Details of self-assessment tax, advance tax, and regular assessment tax paid
• Relief under section 89, which was not claimed in the earlier return

Is there any penalty for filing an updated ITR?

If the ITR-U is filed within one year from the end of the relevant assessment year, the taxpayer has to pay 25% of the tax due along with interest as additional tax. Further, if the return is filed after one year, he/she has to pay 50% of the tax due along with interest as additional tax.