Wednesday, December 6, 2023

Missed December 31 deadline for belated ITR? File return with ITR-U

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The deadline to file income tax returns (ITRs) for financial year 2021-22 was July 31, 2022. For those who missed the due date, December 31 was the last date to submit belated returns. It was also the deadline for taxpayers to file revised ITRs, after rectifying the errors (if any) made in the original returns.

There is, however, another chance for those who are still to file their ITRs. The ITR-U was introduced by the Union government in Budget 2022 and is available for up to 2 years from the end of the relevant assessment year (AY).

What is ITR-U?

With ITR-U, a taxpayer can report any income he/she may have failed to in the previous return. This option is also available to anyone who did not submit timely, belated or revised ITRs. Additionally, if an ITR was not closed in a particular financial year, this facility can be used there as well.

The last date for ITR-U for AY 2020-21 is March 31, 2023, and March 31, 2024, for AY 2021-22. For AY 2022-23, it is March 31, 2025.

Is there a penalty for ITR-U?

If you did not report an income, an additional tax is levied at 25% of the tax and interest due on the income not reported. The fine has to be paid within 12 months from the end of the relevant AY.

On the other hand, when an ITR-U is filed after 1 year and within 2 years from the end of the relevant AY, the penalty goes up to 50%.

Where to file ITR-U?

You can submit it on Also, it cannot be used in these cases: nil or loss return, claiming or enhancing the refund, and minimising income tax liability from the return closed earlier.

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