INCOME TAX RETURN (ITR)-U

INTRODUCTION

According to the Finance Minister's announcement of Budget 2022, Taxpayers now have the option to correct their ITR or file an ITR that was previously left by ITR U filing (Updated Income Tax Return). The Finance Bill 2022 was the vehicle through which the finance minister enacted Section 139(8A) of the Income Tax Act.

So, for a period of up to two years after the conclusion of the relevant assessment year, Section 139(8A) of the Income Tax Act and Rule 12AC of the Income Tax Rules provide taxpayers the opportunity to update their returns or to file a new return in the event that none was previously filed. ITR-U filing was created to improve taxpayers' tax compliance while preventing legal action.