If you have missed December 31 deadline for filing your belated tax return, then you have the option to file an updated ITR, a new option announced in the Budget 2022
After December 31 of the AY, you may not be able to voluntarily file ITRs. You will then need to request the IT department for permission to file, or, if and when the IT department picks up your income and tax details for scrutiny, you will be told about the next step.
What is the penalty on Filing ITR Late
What is updated ITR return?
An updated ITR,ITR-U, is an updated return that allows you to update/file any of your previous returns within 24 months of filing. ITR U is introduced to improve tax compliance by taxpayers without involving litigations. Section 139(8A) under the Income Tax Act allows you a chance to update your ITR within two years. Two years will be calculated from the end of the year in which the original return was filed
The government introduced the concept of updated returns in the Union Budget 2022.
An updated ITR (ITR-U) can be filed irrespective of whether an individual has filed an original, belated or revised ITR or has completely missed filing the form in a particular financial year.
You cannot file a Nil return in ITR-U. ITR-U cannot be filed when there is no additional outflow of tax.
an additional tax shall be levied u/s 140B. The additional tax is 25% or 50% of the tax and interest due, depending on whether the ITR-U is filed within 12 or 24 months from the end of the relevant assessment year.
Note: that ITR-U cannot be used to show a loss return, claim income tax refund and so on.
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The time limit for filing ITR-U is 24 months from the end of the relevant assessment year.
You will have to pay an additional tax of 25% or 50% on the tax amount, depending on when you file the ITR-U.
The updated return can be filed if the individual has not filed any ITR earlier and have no pending income tax dues. The person will need to pay a penalty for the late filing of the return under Section 234F
Your total income tax liability would be as under:
Total Income Tax Liability = Tax Payable + Interest +Late-filing fees + Additional Tax
Net Tax Liability = Total Income Tax Liability (as above) – TDS/TCS/Advance Tax/Tax Relief
| ITR-U filed within | Additional Tax |
| 12 months from the end of relevant AY | 25% of additional tax + interest |
| 24 months from the end of relevant AY | 50%  of additional tax + interest |
An Updated Return can be filed in the following cases:
- Did not file the return. Missed return filing deadline and the belated return deadline
- Income is not declared correctly
- Chose wrong head of income
- Paid tax at the wrong rate
- To reduce the carried forward loss
- To reduce the unabsorbed depreciation
- To reduce the tax credit u/s 115JB/115JC
A taxpayer could file only one updated return for each assessment year(AY).
ITR-U cannot be filed in the following cases:
- Updated return is already filed
- For filing nil return/ loss return
- For claiming/enhancing the refund amount.
- When updated return results in lower tax liability
- Search proceeding u/s 132 has been initiated against you
- A survey is conducted u/s 133A
- Books, documents or assets are seized or called for by the Income Tax authorities u/s 132A.
- If assessment/reassessment/revision/re-computation is pending or completed.
- If there is no additional tax outgo (when the tax liability is adjusted with TDS credit/ losses and you do not have any additional tax liability, you cannot file an Updated ITR)
What is the time limit to file ITR-U?
ITR-U is applicable from 1st April 2022. So during the current financial year 2022-23, you can file ITR-U for AY 2020-21 and AY 2021-22.
E.g., The Return of FY19-20 can be updated till 31st March 2023.
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you can file ITR-U even if you missed the original ITR filing deadline. However, you will have to pay the late filing fee u/s 234F and additional liability of 25% or 50% on the tax payable.
