Section 139(8A) of Income Tax Act - ITR u/s 139(8A) FY 2024-25

Section 139(8A) of Income Tax Act has emerged as a significant provision for taxpayers in India. This section allows individuals to file updated income tax returns (ITR-U) even after the regular filing deadline has passed. Section 139(8A) of Income Tax Act provides a second chance to those who may have missed reporting certain income or made errors in their original returns. With the financial year 2024-25 in progress, understanding Section 139(8A) of Income Tax Act has become essential for all taxpayers. This provision helps taxpayers avoid penalties and legal complications that might arise from incorrect or incomplete returns.

Section 139(8A) of Income Tax Act was introduced to promote voluntary tax compliance. It encourages taxpayers to come forward and declare previously undisclosed income without facing harsh penalties. Check your eligibility for a home loan from Bajaj Finserv by entering your mobile number and OTP to see your pre-approved offers while ensuring your tax compliance is perfect.

This article will explain the key aspects of Section 139(8A) of Income Tax Act, its eligibility criteria, filing process, and important deadlines for FY 2024-25. It will also highlight how proper tax compliance can benefit your home loan application process.

Budget 2025 update

The Budget 2025 has brought significant changes to Section 139(8A) of Income Tax Act. The timeframe for filing updated returns has been extended from two years to four years from the end of the relevant assessment year. This extension gives taxpayers more time to correct errors and report additional income. The budget also clarified that taxpayers can file only one updated return under Section 139(8A) of Income Tax Act for any assessment year. These changes aim to make tax compliance easier while ensuring the tax department receives accurate information from all taxpayers.

What is Section 139(8A) of the Income Tax Act?

Section 139(8A) of Income Tax Act is a provision that allows taxpayers to file an updated return even after the due date has passed. This section was introduced to give taxpayers an opportunity to voluntarily declare income that was previously not reported. It aims to reduce tax disputes and promote voluntary compliance. Section 139(8A) of Income Tax Act specifies that such updated returns can be filed within four years from the end of the assessment year. The provision benefits both taxpayers and the tax department by minimising litigation and ensuring proper tax collection.

Eligibility criteria for Section 139(8A)

To file an updated return under Section 139(8A) of Income Tax Act, taxpayers must meet certain eligibility criteria:

• Must have filed the original return of income for the relevant assessment year. The updated return option is not available if you have not filed any return initially.
• The taxpayer should have additional income to report that was not included in the original return. Section 139(8A) of Income Tax Act specifically targets unreported income.
• The updated return must be filed within four years from the end of the relevant assessment year. This timeline is crucial for maintaining eligibility under Section 139(8A) of Income Tax Act.
• The taxpayer must not fall under any of the exclusion categories mentioned in the Act. Certain entities and situations are restricted from using this provision.
• The taxpayer must be willing to pay the additional tax along with interest as required under Section 139(8A) of Income Tax Act.

Penalty for late filing of ITR under Section 139(8A)

Filing an updated return under Section 139(8A) of Income Tax Act requires payment of additional tax. This is not technically a penalty but rather an additional charge for using this facility. If the updated return is filed within 12 months of the end of the assessment year, the additional tax is 25% of the aggregate of tax and interest. If filed after 12 months but within 24 months, the additional tax increases to 50%. For returns filed after 24 months but within the four-year window, the rate is 75%. These graded charges under Section 139(8A) of Income Tax Act encourage earlier disclosure.

What is ITR-U?

ITR-U is the specific form designed for filing updated returns under Section 139(8A) of Income Tax Act. It stands for Income Tax Return-Updated. This form must be used when a taxpayer wishes to report additional income or correct errors in the original return. ITR-U requires details such as the reason for updating the return, the additional income being reported, and the tax payment details. The form is submitted electronically through the Income Tax Department's portal. ITR-U is a comprehensive form that captures all the necessary information required for processing updated returns under Section 139(8A) of Income Tax Act.

Who can file ITR-U under Section 139(8A)?

The following categories of taxpayers can file ITR-U under Section 139(8A) of Income Tax Act:

• Individual taxpayers who have discovered unreported income after filing their original returns. These individuals can correct their mistake through this provision.
• Business entities that need to report additional income discovered during internal audits. Section 139(8A) of Income Tax Act allows them to come clean voluntarily.
• Taxpayers who have received notices for income mismatch but have not yet been assessed. Filing ITR-U can help them avoid further scrutiny.
• Salaried individuals who may have forgotten to report income from other sources. Check your eligibility for a Bajaj Housing Finance Home Loan after ensuring all your income is properly declared. You may already be eligible; find out by entering your mobile number and OTP.

When can you file an updated return under section 139(8A)?

You can file an updated return under Section 139(8A) of Income Tax Act in the following situations:

• When you discover additional income that was not reported in the original return. This could include income from investments, property, or other sources.
• If you find errors or omissions in your original return that need correction. Section 139(8A) of Income Tax Act allows for these corrections.
• When you receive information about income that was not available at the time of filing the original return. This provision gives you a chance to include it later.

Who is eligible to file ITR-U u/s 139(8A)?

All categories of taxpayers, whether an Individual, HUF, Firm/LLP, Company, AOP, or BOI, are permitted to file an Updated Return under Section 139(8A). However, certain conditions must be met before filing:

• The Updated Return can be filed if no income tax return was submitted earlier, or if the originally filed return contains mistakes or omissions.
• It is allowed only when the taxpayer needs to declare extra income that was left out previously and pay the due additional tax.
• To file, the taxpayer must show taxable income above the basic exemption limit (Rs. 2.5 lakhs under the old regime or Rs. 3 lakhs under the new regime).

Who is not eligible to file ITR-U u/s 139(8A)?

Certain taxpayers cannot file ITR-U under Section 139(8A) of Income Tax Act:

• Those who have already filed an updated return for the same assessment year. Section 139(8A) of Income Tax Act allows only one updated return per assessment year.
• Taxpayers against whom search and seizure operations have been conducted. These cases are handled differently under tax laws.
• Those who are facing prosecution for any offense under specified economic laws. Such cases require special handling beyond Section 139(8A) of Income Tax Act.

The due date for filing ITR for AY 2025-26

The due date for filing the original income tax return for Assessment Year 2025-26 varies based on taxpayer category. For individuals and HUFs not subject to audit, the due date is July 31, 2025. For businesses requiring audit, the deadline extends to October 31, 2025. It is important to meet these deadlines to avoid penalties and interest charges. After these dates, the option to file a belated return is available until December 31, 2025. However, for filing an updated return under Section 139(8A) of Income Tax Act, you have four years from the end of the assessment year.

ITR filing due dates for AY 2025-26

These due dates are crucial to remember as they determine when you can start using Section 139(8A) of Income Tax Act for filing updated returns. Missing these dates may result in penalties and affect loan approvals. Check your eligibility for home loans from Bajaj Finserv after ensuring timely tax compliance. You may already be eligible; find out by entering your mobile number and OTP.

ITR filing last date 2025

The absolute last date for filing the original return for AY 2025-26 is December 31, 2025. After this date, you can only file an updated return under Section 139(8A) of Income Tax Act. Filing after the regular due date but before December 31, 2025, is considered a belated return and attracts penalties. The last date for filing an updated return under Section 139(8A) of Income Tax Act will be March 31, 2030, which is four years from the end of AY 2025-26.