Complete Guide to Filing Belated ITR or ITR-U (Updated Return) Under Section 139(8A)

The Income Tax Department has introduced the concept of ITR-U (Updated Return) under Section 139(8A) to provide taxpayers an opportunity to correct any omissions or errors in their previously filed income tax returns or to file a return if not filed earlier. Here's everything you need to know about who can file ITR-U, conditions, exceptions, and special cases.

Who is Eligible to File ITR-U?

Any assessee can file an updated return under Section 139(8A), whether:

• They have not filed any return previously (missed original, belated or revised returns)
• They have already filed a return but wish to correct or disclose additional income

Is Filing Original or Revised ITR a Pre-condition to ITR-U?

No. Filing an original, belated or revised ITR is not a pre-condition to file ITR-U. Even if no return has been filed earlier, an assessee can still file ITR-U for an Assessment Year.

Can ITR-U Be Filed in Representative Capacity?

Yes, an ITR-U can be filed in the representative capacity for the income of any other person, provided the assessee is assessable under the Income Tax Act in such capacity.

For How Many Assessment Years Can ITR-U Be Filed?

ITR-U can be filed for up to 4 previous Assessment Years at a time, subject to the condition that 48 months have not passed since the end of the relevant Assessment Year.

Example: In AY 2026-27, ITR-U can be filed for:

• AY 2022-23
• AY 2023-24
• AY 2024-25
• AY 2025-26

When Can ITR-U Not Be Filed?

An updated return (ITR-U) cannot be filed in the following situations:

a) For a Loss:

Normally, ITR-U cannot be filed to declare a loss. However, there’s an exception:

• If a return of loss was originally filed under Section 139(1),
• In the prescribed form, verified and complete, and
• The updated return now shows positive income (not a revised loss), then filing ITR-U is allowed.

b) If It Reduces Tax Liability or Results in a Refund:

• ITR-U cannot reduce the original total tax liability.
• ITR-U cannot result in a new or increased refund.

c) In Search or Survey Cases:

• A search/survey has been initiated under the Act.
• Assets/books were requisitioned.
• Notices issued for seizure/requisition of assets.

d) If ITR-U Already Filed:

• Only one ITR-U can be filed for a particular assessment year.

e) Pending or Completed Proceedings:

• Assessment, reassessment, or revision proceedings are pending or completed.

f) Information Under Specified Laws or DTAA:

• If AO has information under PMLA, Black Money Act, etc., and it was communicated before filing.
• If AO has info via DTAA and has communicated it before filing.

g) Prosecution Proceedings Initiated:

• Prosecution has already begun for the relevant AY before filing.

h) Notice Under Section 148A:

• A show cause notice under 148A is issued.
• However, if order under 148A(3) says it is not a fit case for notice under Section 148, then ITR-U may still be filed.

i) Notified Assessees:

• ITR-U cannot be filed for persons notified as ineligible.

How can you file the Belated Return or ITR-U?

The assessee can either file the ITR-U directly on the income tax website or can chose www.fiscalnow.com to file the same in a hassle free manner. Click here to know more

Special Case: Multiple ITR-Us for Subsequent Years

If filing ITR-U for a year affects the carry-forward figures (like loss, unabsorbed depreciation, or tax credits under 115JAA/115JD), the assessee must also file ITR-U for each subsequent year affected by the change.

Conclusion

The ITR-U scheme offers a valuable chance for taxpayers to correct past mistakes and come clean with additional income disclosures. However, it’s crucial to be aware of the timelines, exceptions, and legal provisions involved to avoid penalties and non-compliance issues.

Hemant Sharma

Hemant, a distinguished Advocate and Chartered Accountant, brings over 14 years of exceptional expertise in high-stakes investigative assignments. His extensive portfolio includes conducting forensic audits, representing clients in investigations led by prominent agencies such as the CBI, ED, SFIO, and others, as well as handling critical Income Tax and GST intelligence matters. Armed with a robust academic and professional foundation—B.Com, M.Com, FCA, LL.B, DISA, FAFD, and CCCBA—Hemant embodies a rare blend of legal and financial acumen, making him a trusted authority in the field. Hemant can be contacted @ hemant.sharma53@gmail.com