INCOME TAX UPDATED RETURN FAQ'S

Frequently Asked Questions

1. Can we file the Updated return without filing original or belated returns?

Yes, Updated return can be filed even if the original or belated returns is not filed.

2. How many times can I file Updated return?

Updated return can be filed only once and it is not possible to revise updated return.

3. From which date, Section 139(8A) is effective?

139(8A) is effective from 01st Apr 2022 and the tax payers can utilize the same from 01st Apr 2022 for last three financial years.

4. Do I need to pay penalty u/s 234F for filing updated return?

If you are filing the return for first time (not filed earlier), then you are required to pay penalty u/s 234F. If you have filed return earlier, then penalty u/s 234F will not be levied.

5. Can nil return be filed in ITR-U?

No, you cannot file a Nil return in ITR-U. ITR-U cannot be filed when there is no additional outflow of tax.

6. Can a refund be claimed in ITR-U?

No, ITR-U cannot be filed in the following cases:

• claiming a refund,
• increase in the refund amount, .
• nil return or filing a loss return. 

7. What are the benefits of filing Form ITR-U?

By filling out ITR-U, one can avoid the Scrutiny assessment u/s 143(3), best judgement assessment u/s 144, and income escaping assessment u/s 147. One can also avoid the hassle of a survey, search and seizure proceedings.

8. Can I file ITR-U if I do not have any tax payable?

No, if your total tax is adjusted with TDS credit and you do not have any additional tax liability, you cannot file an Updated ITR. 

9. Can I file ITR-U if my total income is below 5 lakhs and I have claimed rebate u/s 87A?

Yes, you can file the updated return, but you will be liable for late filing fees. The same must be paid, and the payment details must be updated under the “Taxes Paid under 140B” tab. 

10. Can I change the ITR form number when filing an ITR-U or updated return?

Yes, if you had filed ITR-1 for an assessment year and the updated return changes to ITR 2/3/4 due to the declaration of an additional source of income, such a submission will be accepted.

11. Can I claim Extra carry forward loss under ITR-U?

No, as per section 139(8A), you cannot enhance your carryforward loss. You can only reduce the carryforward loss balance.