Last date to file ITR-U for AY 2021-22 is March 31. Here's all you you need to know
Upstox
3 min read • Updated: March 27, 2024, 8:22 PM
Summary
As defined by Section 139 (8A) of the I-T Act, ITR-U can be filed within two years from the end of the concerned financial year. The concept of ITR-U was introduced by the government in the Union Budget 2022 to facilitate tax compliance without any legal actions.
Taxpayers who missed the deadline to file income tax returns (ITR) for the assessment year 2021-22 (FY 2021) still have one more chance to complete the filing. They can use the option to update ITR to file returns for their earnings in FY2021. As defined by Section 139 (8A) of the I-T Act, ITR-U can be filed within two years from the conclusion of the concerned financial year.
So, those who could not file ITR or have to make any changes in their filing for FY 2022 should complete the task before the March 31 deadline.
What is ITR-U?
The concept of updated ITR (ITR-U) was introduced by the government in the Union Budget 2022 to facilitate tax compliance without any legal actions. A person can file an updated ITR to correct any mistakes, under-reporting or misreporting income in their original tax return. Individuals who did not file the ITR by the due date can also use the option of ITR U. Not filing a return or errors in the filing can lead to notice and penalties of up to 300% of the tax evaded.
What is the deadline to file ITR-U?
The updated ITR can be filed within 24 months from the end of the relevant financial year. So for the assessment year 2021-22, the deadline to file updated returns is March 31, 2024. In the current financial year, the updated returns can be filed for ITRs of AY 2021-22 (FY 2021) and AY 2022-23 (FY 2022).
What are the additional charges under ITR-U?
Taxpayers may be required to pay an additional tax as per the provision of the Income Tax Act. For filing an updated return within 12 months of the concerned assessment year, a 25% additional tax on the dues is applicable. If filed between 12 months to 24 months of the concerned AY, the additional tax will be 50%.
Individuals are required to use ITR forms notified for the respective assessment year along with the newly introduced form ITR-U. The tax payable for an updated return includes the total income tax liability, encompassing tax payable, interest, late filing fees and additional tax. The net tax liability is calculated by deducting advance tax, TDS, TCS, and tax relief from the total income tax liability.
Who cannot file ITR-U?
It must be noted that ITR U cannot be filed if the taxpayer has already filed a revised return or the filing is being made for nil/loss returns. Filings for enhanced refunds or when a search under section 132 has been initiated against the taxpayer or when the survey has already been conducted under section 133A are also not allowed under ITR-U.
Individual taxpayers, who are not liable for audit of their books of account, need to file their ITR by July 31 every year. A revised tax return can also be filed between August 1 and December 31 of the relevant assessment year, provided the assessment of the original ITR has not been completed by the income tax department. If the assessment has already been completed, the revised returns have to be filed within 3 months of the completion date of the assessment. A delayed ITR can be filed from August 1 to December 31, with a fine.