ITR 2023 Update - ITR-U Form, File ITR-U Under Section 139(8A)

The Finance Act of 2022 created a brand-new concept of an updated return, which permits taxpayers to continue updating their ITRs after filing for less than two years, provided that taxes have been paid.The Central Board of Direct Taxes (CBDT) recently published a new ITR Form U for submitting amended Income Tax Returns, in which taxpayers must specify the cause for filing as well as the amount of earnings to be taxed. Taxpayers will be able to use the new Form ITR-U to file amended tax returns for the fiscal years 2019-20 and 2020-21.

In fulfilment of section 139(8A) of the Income-tax Act of 1961, the CBDT announced Rule 12AC for filing an Updated Return of Income in Form ITR-U (ITR for updated return) by Notification No. 48/2022 dated 29.04.2022 in G.S.R. 325(E) through the Income-tax (Eleventh Amendment) Rules of 2022.

ITR 2023 Update: ITR-U Form, File ITR-U Under Section 139(8A)

Return Upgraded

The Finance Act of 2022 introduced the notion of providing updated returns, commonly known as “updated returns,” in order to record increased income subject to extra income tax payment. Section 139(8A) of the Income Tax Act was especially added for this purpose, and it explains the procedures for filing updated income tax returns in the approved format and with the necessary information. The CBDT has now made Rule 12AC and a revised Form ITR-U accessible for submitting such updated income reports in compliance with the Income-tax (Eleventh Amendment) Regulations, 2022.

2022 Income Tax (Eleventh Amendment) Rules – Form ITR-U

The CBDT released Rule 12AC in the Income-tax (Eleventh Amendment) Rules of 2022 for the purpose of submitting an Updated Return of Income in Form ITR-U (ITR for an updated return) in line with the requirements of section 139(8A) of the Income-tax Act of 1961 (Act).

Rule 12AC of the New IT Rules

The amended return required by Section 139(8A) for the assessment year starting April 1, 2020, and subsequent assessment years, must be on Form ITR-U and verified in accordance with its instructions, according to Rule 12AC of the IT Rules.

Form ITR-U

Individuals have twenty-four months from the end of the appropriate analysis year to amend their income in accordance with section 139(8A) and Rule 12AC.

  • Returns that were never filed before.
  • erroneous income reporting.
  • erroneously identified sources of income.
  • smaller carried-forward loss.
  • less unabsorbed depreciation Reduction of the 115JB/115JCo Tax Credit.
  • Unfair taxation.

Individual Eligible to File a Revision

Even if a person has not previously filed an income tax return under section 139 for the applicable assessment year, they may nevertheless file an amended return. 

A person may only file a return if they have more income to disclose and have already filed an income tax return.

Method for ITR-U Verification

A company, political party, or individual who is the subject of a mandatory tax audit under Section 44AB is required to submit an up-to-date earnings return to DSC. 

In other cases, DSC is not necessary, and an up-to-date return may be submitted voluntarily in conjunction with DSC or EVC.

The ITR Form-U Submission Deadline

Form ITR-U may be filed two years after the end of the relevant assessment year. Section 139(8A) rules for the submission of an updated income return went into effect on April 1, 2022. As a result, updated results for fiscal years 2020-21 and 2021-22 can be issued in 2022-23. A revised return of income may only be provided once for the applicable assessment year. As a result, taxpayers should use extreme caution while submitting Form ITR-U. The provisions provide that the updated return cannot be amended.