Updated Return – ITR

Now, the taxpayers will be allowed to file an updated tax return in case they have not disclosed certain income to tax while filing the first return. They can update their income tax returns (ITR) within two years from the end of relevant assessment year by paying an additional tax, irrespective of whether an original tax return was filed. It must be mentioned that an additional tax will be levied on the additional income while updating the ITR.

• Under which circumstances can an updated return be filed?

There are certain conditions attached to and restrictions imposed on filing of the proposed 'updated return', which are listed below:

• There should be additional income being offered to tax and additional tax outflow for the taxpayer
• Only one 'updated return' can be filed for a relevant AY
• The updated return must be accompanied with proof of payment of applicable tax and interest along with late return filing fees and "additional tax" 

Additional tax shall be 25% and 50% of the aggregate tax and interest (as per the updated return) if the updated return is filed within 12 months and 24 months from the end of the AY, respectively.

• Interest under sections 234A, 234B and 234C shall apply (as applicable) on the tax payable as per the updated return.

• Form And Manner of Filing Updated Return:

Updated return is to be filed in Form ITR-U. ITR-U is to be filed by all assessee irrespective of the fact that original return form applicable was ITR-1 or ITR-2 or any other ITR form. It is not required to be accompanied with ITR-1, ITR-2 or any other ITR form originally applicable to the assessee (if it was filed U/s. 139(1) / 139(4) / 139(5).

It is to be filed either

(a) electronically under digital signatures; or

(b) under electronic verification code (as per the rule applicable to the particular assessee).
Steps to File ITR-U (Income Tax Updated Return) Form

1. Part A: General Information-139(8A)
2. Part B: ATI Computation of Total Updated Income and Tax Payable.
3. Tax Payments (Only as per Updated Return)
4. Verification.