Income Tax Updated Return (ITR-U) – Complete Guide
The Income Tax Updated Return (ITR-U) is a facility under the Income Tax Act that allows taxpayers to update or correct their previously filed ITR for a particular assessment year. This provision ensures that taxpayers can rectify errors or omissions without facing penalties, provided they comply with the timelines and rules.
Who Can File ITR-U?
- Taxpayers who have already filed their ITR and need to correct mistakes.
- Taxpayers who missed filing their ITR entirely, provided it is within the 24-month window from the end of the assessment year or before completion of assessment, whichever is earlier.
- Individuals, HUFs, companies, LLPs, and other taxpayers.
Important Note:
- Taxpayers filing for previously unfiled ITRs cannot claim TDS or advance tax credits that were eligible earlier.
- ITR-U can be filed once per assessment year.
What Can Be Corrected in ITR-U?
- Errors in income details
- Mistakes in deductions and exemptions
- Incorrect tax computation or tax paid
- Any omission affecting tax calculation
What Cannot Be Corrected:
- TDS, advance tax, or refunds that were not claimed in the original ITR
- New income that was not disclosed in the originally filed return
Fees and Penalties
- Filing an ITR-U for previously unfiled ITRs comes under Section 140B, which requires payment of prescribed fees based on delay and type of taxpayer.
- Late fees under Section 234F do not apply if filed within the ITR-U window, but interest may apply under Sections 234A/B/C if additional tax liability arises.
Timeline to File ITR-U
- ITR-U can be filed within 24 months from the end of the relevant assessment year or before the completion of assessment, whichever is earlier.
- Example: For FY 2024-25 (AY 2025-26), the ITR-U can be filed up to 31st March 2027, or before the assessment is completed.
Benefits of Filing ITR-U
- Rectify Errors: Correct mistakes in previously filed or unfiled returns.
- Maintain Compliance: Avoid notices and penalties from the Income Tax Department.
- Update Income & Deductions: Ensure correct reporting of income and deductions (except TDS/credits for unfiled returns).
- Peace of Mind: Keep tax records accurate and legally compliant.
How Lakshya Tax Consultancy Can Help
At Lakshya Tax Consultancy, we provide end-to-end ITR-U support:
- Review of original or unfiled ITRs to identify errors
- Calculation of correct income, deductions, and tax liability
- Filing ITR-U online in compliance with all legal requirements
- Guidance on fees under Section 140B for unfiled returns
- Expert support for any queries from the Income Tax Department
With our expert assistance, you can file your updated returns confidently, whether correcting mistakes or filing unsubmitted returns, ensuring complete compliance with minimal hassle.
Summary Table
| Feature | Details |
|---|---|
| Purpose | Update/correct previously filed or unfiled ITR |
| Eligibility | Taxpayers with filed ITR or missed ITR |
| TDS/Advance Tax Claims | Not available for previously unfiled returns |
| Filing Window | 24 months from end of AY or before completion of assessment |
| Fee Section | Section 140B for unfiled ITRs |
| Late Fees | Section 234F not applicable; interest under 234A/B/C may apply |
| Limit | Once per assessment year |
