How to prepare the ITR-U form

Zen IT || How to prepare the ITR-U form

What is ITR-U Form and How to File ITR-U:
ITR-U or Updated Income Tax Return is the form that allows you to rectifying errors or omissions and update your previous ITR. It can be filed within two years from the end of the relevant assessment year. The government introduced the concept of updated returns in the Union Budget 2022.
Who can file ITR-U under Section 139(8A)?:
Any person who has made an error or omitted certain income details in any of the following returns is eligible to file an updated return:
1) Original return of income, or 
2) Belated return, or 
3) Revised return

An Updated Return can be filed in the following cases:
1) Did not file the return. Missed return filing deadline and the belated return deadline
2) Income is not declared correctly
3) Chose wrong head of income
4) Paid tax at the wrong rate
5) To reduce the carried forward loss
6) To reduce the unabsorbed depreciation
7)To reduce the tax credit u/s 115JB/115JC
A taxpayer can file only one updated return for each assessment year(AY).
Who is not eligible to file ITR-U u/s 139(8A)?:
ITR-U cannot be filed in the following cases:
1) Updated return is already filed 
2) For filing nil return/ loss return
3) For claiming/enhancing the refund amount.
4) When updated return results in lower tax liability
5) Search proceeding u/s 132 has been initiated against you
6) A survey is conducted u/s 133A
7)Books, documents or assets are seized or called for by the Income Tax authorities u/s 132A.
8) If assessment/reassessment/revision/re-computation is pending or completed.
9) 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)

Should you pay additional tax when filing ITR-U?:
Yes, you will have to pay an additional tax of 25% or 50% on the tax amount, depending on when you file the ITR-U.

ITR-U filed within
Additional Tax
12 months from the end of relevant AY
25% of additional tax + interest + late filing fee
24 months from the end of relevant AY
50%  of additional tax + interest + late filing fee

How to prepare ITR-U using software:

Step 1:
Fill ITD Login credential In Online Tools > Online activity 2.0 To retrieve the originally uploaded data from the Income Tax portal:



Step 2:
Go to Transaction >> ITR-U >> Fill the Required Information:
Step 1: Are you filing the updated return during the period:
             "Up to 12 months from the end of the relevant assessment year"
             "Between 12 to 24 months from the end of the relevant assessment year."
Step 2: To update the income, click on the hyperlink labeled "When you click on the blue-colored amount, it will automatically go to the relevant Heads of income."
Step 3: To save the details, click the "Save" button.
Step 4: To fill in the Challan Information under Section 140B, click the "Next" button.



Step 3:
Step 1: Fill the Information Related to Section 140B provides for payment and computation of tax, interest, fee, and additional income-tax on updated return.
Step 2: To save the above information, click on the 'Save' button.
Step 3: To Generate Computation and e-Filing (JSON), Click on the "e-file" button.



Step 4:
For >> Point 8 : The amount should be greater than '0' (zero).
Point 10 : IT should be '0' (Zero).
After Then Click on ITR (The form which has been generated) and after generate the JSON click on Upload Button.



Hope This Helps.

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