Many People who could not file ITR properly or some unintentional mistake happens during filing of ITR will now get a chance to File ITR – U. CBDT recently notified forms on 29th April, 2022. Government is giving a chance to assessee to correct ITR by generating more revenue in the Government kitty.

Assessee can file return only within 24 months of ending relevant Assessment year in case of any error or omission notice by the Assessee after filing of original ITR. Return u/s 139(8A) can be filed only from FY 2019-20.

Assessee has to give the reason for filing ITR – U and only the additional income which they are willing to offer and Challan payments detail.

Discuss who is eligible for ITR –U Filing:

• Income not reported correctly
• Wrong Heads of Income Chosen
• Reduction of Carried forward losses
• Reduction of unabsorbed Depreciation
• Reduction of Tax Credit u/s 115JB/115JC
• Wrong rate of tax

So from above it’s clear that you will not get a chance to rectify those mistakes which result in the loss of Government revenue, Confused? Let me clear your doubts with the below points.

So who are not eligible to file ITR – U:

• NIL Return
• Increase in Refund/Claiming of Refund
• Search/Survey/Prosecution Proceedings are initiated for said A.Y.
• Assessment/Reassessment/Revision/Recomputation is Pending or Completed for Said A.Y.

Puzzling: Act does not allow the Taxpayers to file the updated return if there is no additional tax outgo.

Also notes folks that Interest will be charged and late fees also will get levied
• If Updated ITR is filed within 12 Months From end of Relevant A. Y – Pay 25% Interest.
• If Updated ITR is filed After 12 Months But before 24 Months From end of Relevant A. Y – Pay 50% Interest.

It’s a win-win formula to both parties but time will tell how much it succeeds.

Author Bio
Name : CA Karan Singh
Qualification: CA in practice
Company: Bashmakh& Co
Location :Shill,Thane
Contact: 8779526602/ 8898704682


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