CBDT notifies Form ITR-U for filing of updated return

Notification No. 48/2022, dated 29-04-2022

The Finance Act, 2022 has introduced a new concept of updated return, wherein it allows up to 24 months to file the return of income. A new sub-section (8A) has been inserted under section 139 to allow a person to file an updated return of income except in case of search & seizure and other specified circumstances.

The provision of an updated return is effective from 01-04-2022, and the time limit provided for filing an updated return is 24 months from the end of the relevant assessment year. In the financial year 2022-23, a person can file an updated return for AY 2020-21 and AY 2021-22.

The Central Board of Direct Taxes (CBDT) has notified a new Rule 12AC and a new Form ITR-U, which shall be required to be filed along with the respective ITR, to furnish an updated return.

The following are the key excerpts from the newly notified Rule and Form:

1. Manner of furnishing an updated return

An updated return of income is to be furnished electronically under a digital signature or through an electronic verification code for a certain class of person. Further, no separate ITR forms have been notified for filing of an updated return.
A taxpayer is required to furnish an updated return in those ITR forms which were notified for the respective Assessment Year for which an updated return is to be furnished. Such an ITR form is to be filed along with the newly notified ITR-U.

2. Part A General Information (ITR-U)

This part of ITR-U seeks general information from taxpayers related to the filing of an updated return. It includes the following:

a) Are you eligible to file an updated return? i.e., a person is not falling in such circumstances wherein an updated return can’t be filed.
b) Selecting the ITR form for filing an updated return
c) Reasons for updating income. This includes reasons such as returns previously not filed, income not reported correctly, wrong heads of income chosen, etc.
d) Are you filing an updated return within 12 months from the end of relevant AY or between 12 to 24 months from the end of relevant AY?
e) Are you filing an updated return to reduce carried forward loss or unabsorbed dep. or tax credit?

3. Part B – Computation of updated income and tax payable (ITR-U)

This part of ITR-U includes heads of income under which additional income is reported. The taxpayer is required to mention only additional income. Total income as reported in Part B TI of the ITR form shall also be reported here to compute the additional tax payable by the assessee on the updated return (section 140B).
Adjustments such as previously paid tax, refund issued to the taxpayer, and fee for default in the furnishing of return of income under section 234F shall be considered while calculating such additional tax.

4. Tax Payments (ITR-U)

This part of ITR-U includes details of tax payment by the assessee on the updated return under section 140B and details of payments of advance tax, self-assessment tax, regular assessment tax, and credit for which has not been claimed in the earlier return.

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