ITR-U Filing for FY 2021-22: Last Date 31st March 2025

The Income Tax Department introduced ITR-U (Updated Income Tax Return) under Section 139(8A) of the Income Tax Act. It allows taxpayers to correct errors, disclose missed income, or file a return if they failed to do so earlier.

For Financial Year 2021-22 (Assessment Year 2022-23), the last date to file ITR-U is 31st March 2025.

1. What is ITR-U?

ITR-U is an updated return that allows taxpayers to:

• File a return if they missed the original ITR deadline.

• Correct errors or omissions in a previously filed return.

• Report undisclosed income to avoid penalties.

• Comply with tax laws and avoid scrutiny.

It provides a second chance to rectify mistakes and ensure tax compliance.

2. Who Can File ITR-U?

A taxpayer can file ITR-U in the following cases:
✅ If the original return was not filed within the due date.
✅ If additional income was left undisclosed in the original ITR.
✅ If errors or omissions exist in the previously filed return.
✅ If excess losses or depreciation were claimed earlier and need correction.

This helps individuals and businesses stay compliant while minimizing penalties.

3. Who Cannot File ITR-U?

ITR-U cannot be filed in the following situations:
🚫 If there is no additional tax liability (i.e., no extra tax to be paid).
🚫 If the taxpayer wants to reduce tax liability from the original return.
🚫 If the taxpayer wants to increase the refund claim.
🚫 If a search, seizure, or investigation is already conducted under Sections 132 or 132A.
🚫 If the return involves foreign assets or income disclosure.
🚫 If the updated return is filed beyond the allowed time limit (within 24 months from the end of the relevant assessment year).

4. Penalty for Filing ITR-U

Filing an updated return comes with an additional tax liability, depending on when it is filed:

📌 Within 12 months from the end of the Assessment Year: Additional 25% of the tax and interest due.
📌 Between 12 to 24 months from the end of the Assessment Year: Additional 50% of the tax and interest due.

Example Calculation

• Undisclosed income: ₹5,00,000

• Tax payable: ₹1,00,000

• Interest: ₹10,000

If ITR-U is filed within 12 months, the additional amount payable is ₹27,500 (25% of ₹1,10,000).
If ITR-U is filed after 12 months, the additional amount payable is ₹55,000 (50% of ₹1,10,000).

This ensures compliance and discourages delayed disclosures.

5. How to File ITR-U?

Follow these steps to file an Updated Return (ITR-U) online:

Step 1: Login to Income Tax Portal

Go to the official Income Tax e-Filing portal: https://www.incometax.gov.in/
Log in using your PAN and password.

Step 2: Navigate to the ITR Filing Section

Click on e-File > Income Tax Returns > File Income Tax Return.

Step 3: Select ITR-U as the Return Type

Choose:

• Assessment Year: 2022-23

• Return Type: ITR-U (Updated Return)

Step 4: Select the Reason for Filing

Choose from the available options:
☑ Return not filed earlier
☑ Additional income not reported
☑ Incorrect details in the original return
☑ Reduction of losses/unabsorbed depreciation

Step 5: Compute the Additional Tax Liability

• The system will automatically calculate the tax payable, interest, and penalty.

• Make the payment through Challan ITNS 280.

Step 6: Submit ITR-U and Download the Acknowledgment

After making the payment, submit the return and download the acknowledgment receipt for future reference.

6. Frequently Asked Questions (FAQs)

Q1: What is the last date to file ITR-U for FY 2021-22?

The last date is 31st March 2025.

Q2: Can I revise an already filed ITR-U?

No, once an updated return is filed, it cannot be revised.

Q3: Is it mandatory to file ITR-U if I missed my original ITR?

No, it is optional. However, filing ITR-U helps avoid penalties and legal scrutiny.

Q4: Can I claim a refund in ITR-U?

No, ITR-U cannot be used to increase refund claims.

Q5: What if I don't file ITR-U before the deadline?

You lose the chance to rectify past tax returns and may face penalties or scrutiny by tax authorities.

Final Takeaway

📅 ITR-U filing deadline for FY 2021-22 (AY 2022-23): 31st March 2025.
⏳ File at the earliest to avoid penalties and ensure tax compliance.

#IncomeTax #TaxFiling #ITRU #UpdatedITR #TaxReturn #IncomeTaxReturn #TaxCompliance #Finance #TaxPlanning #Taxation #TaxUpdates #CA #CharteredAccountant #TaxLaw #FinancialYear #ITR #IncomeTaxIndia #GovernmentUpdates #FinanceIndia #TaxTips #BusinessTax #PersonalFinance #Accounting #TaxPayer #Investment #Audit #TaxDeadline #Efiling #MoneyMatters #GST #FinancialPlanning