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 Bajaj Housing Finance Home Loan 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.

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 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.

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 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

Taxpayer category	Due date
Individuals and HUFs (non-audit cases)	July 31, 2025
Taxpayers subject to tax audit	October 31, 2025
Partners in firms subject to tax audit	October 31, 2025
Companies	October 31, 2025
Taxpayers with international transactions	November 30, 2025

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.

Updated returns cannot be filed under section 139(8A) in some cases

Section 139(8A) of Income Tax Act does not allow updated returns in these situations:

• Where a search has been initiated under section 132 or books examined under section 132A. These cases are subject to special assessment procedures.
• When a survey has been conducted under section 133A. Section 139(8A) of Income Tax Act excludes such cases.
• If the assessing officer has information about concealed income under specific sections. These cases require different handling procedures.

Prescribed time for updated returns as per section 139(8A)

The prescribed time for filing updated returns under Section 139(8A) of Income Tax Act is four years from the end of the assessment year. For example, for AY 2025-26, taxpayers can file updated returns until March 31, 2030. This extended timeframe gives ample opportunity to correct errors and report additional income. The provision under Section 139(8A) of Income Tax Act ensures that taxpayers have sufficient time to comply with tax laws voluntarily.

Additional tax/penalty for filing updated returns under section 139(8A)

Filing an updated return under Section 139(8A) of Income Tax Act requires payment of additional tax based on when you file:

• If filed within 12 months from the end of assessment year: 25% additional tax on the tax and interest payable.
• If filed after 12 months but within 24 months: 50% additional tax.
• If filed after 24 months but within the 4-year window: 75% additional tax.

These charges under Section 139(8A) of Income Tax Act are in addition to the normal tax and interest.

Required details to be filed in form ITR-U

When filing form ITR-U under Section 139(8A) of Income Tax Act, you must provide:

• Details of the original return filed including acknowledgment number and filing date.
• Reason for filing the updated return with specific codes provided in the form.
• Complete details of the additional income being reported under Section 139(8A) of Income Tax Act.
• Calculation of additional tax payable including interest up to the date of filing.
• Payment details of the additional tax paid before filing the updated return.

Calculate total payable tax for updated returns

To calculate the total tax payable for updated returns under Section 139(8A) of Income Tax Act:

• Determine the tax on the total income (including the newly disclosed income).
• Subtract the tax already paid on the original return.
• Calculate interest under sections 234A, 234B, and 234C as applicable.
• Add the additional tax based on when you are filing the updated return under Section 139(8A) of Income Tax Act.
• The sum of these amounts will be your total tax liability.

Penalty / Additional tax payable

The additional tax under Section 139(8A) of Income Tax Act is structure as follows:

• 25% of the aggregate of tax and interest if filed within 12 months.
• 50% if filed after 12 months but within 24 months.
• 75% if filed after 24 months but within 4 years.

This increasing scale encourages early disclosure of unreported income. It is important to note that this is not technically a penalty under Section 139(8A) of Income Tax Act but an additional charge for using this facility.

Benefits of filing ITR on time

1. Hassle-free home loan approvals

Filing your ITR on time creates a reliable financial record that lenders trust. Bajaj Housing Finance Home Loan approvals become smoother when you have a consistent ITR filing history. Most financial institutions check your ITR before approving home loans to verify your repayment capacity. A clean tax record demonstrates financial discipline and improves your eligibility for better loan terms. Check your eligibility for a Bajaj Housing Finance Home Loan with competitive interest rates. You may already be eligible; find out by entering your mobile number and OTP.

2. Quick tax refund processing

Timely ITR filing ensures faster processing of any tax refunds due to you. The Income Tax Department prioritises refunds for returns filed before the due date. These funds can potentially be used for your home loan down payment or EMIs. Early refunds improve your cash flow and financial planning. Getting your refund quickly means you can allocate these funds toward your housing goals sooner.

3. Valid proof of income and address

Your filed ITR serves as an official proof of income and address for various purposes. Many property transactions require ITR as supporting documentation. It helps establish your financial credibility during home buying processes. Lenders like Bajaj Finserv use ITR to verify your income claims during home loan applications. This documentation speeds up your home loan approval process significantly.

4. Faster visa approvals

Many countries require ITR filings for visa processing. Regular tax filing demonstrates stability and financial responsibility. This can be particularly important if you are planning to purchase property abroad. Your ITR history shows authorities that you are a responsible citizen with stable finances. This can positively influence various official approvals beyond just tax compliance.

5. Carry forward losses

Timely filing allows you to carry forward any losses to subsequent years. This can reduce your tax burden in future years when you have higher income. Such tax savings can be directed toward your home loan EMIs. The provision helps in better financial planning for major investments like property. Missing the due date means losing this benefit permanently.

6. Avoid penalties and legal action

Filing on time helps avoid penalties and potential legal complications. Late filing attracts penalties under various sections of the Income Tax Act. These unnecessary expenses can affect your home loan eligibility and repayment capacity. Maintaining a clean tax record keeps your credit profile strong for future loans.

How to apply for Bajaj Finserv Home Loan

Applying for a Bajaj Housing Finance Home Loan is a simple process:

• Click on the 'APPLY' button and enter your basic details like name, mobile number, and employment type.
• Select the type of loan you wish to apply for – fresh home loan, balance transfer, or top-up loan.
• Verify your phone number through OTP and provide additional details like monthly income and required loan amount.
• Submit your PAN number, date of birth, and other requested information based on your occupation.
• Click on the 'SUBMIT' button to complete your application.
• A Bajaj Finserv representative will contact you to guide you through the next steps.

Eligibility criteria to get home loan from Bajaj Finserv

To qualify for a Bajaj Housing Finance Home Loan with attractive home loan interest rates, you must meet these criteria:

• You must be an Indian citizen residing in India. This is a fundamental requirement for all applicants.
• Age requirements: Salaried applicants must be between 23-67 years, while self-employed professionals must be between 23-70 years. The upper age limit is considered at loan maturity.
• A CIBIL score of 725 or higher is ideal for home loan approval. This demonstrates your creditworthiness.
• You must be a salaried employee, professional individual, or self-employed individual. Various documents required for home loan processing will depend on your occupation type.
• All necessary documents including KYC, income proof, and account statements must be provided. These documents help verify your repayment capacity.

Conclusion

Understanding Section 139(8A) of Income Tax Act is crucial for taxpayers in FY 2024-25. This provision offers a valuable opportunity to correct errors and report additional income without facing severe penalties. Filing ITR-U under this section within the prescribed time limits can help maintain a clean tax record, which is beneficial for various financial activities including home loan applications.

Bajaj Housing Finance Home Loan offers attractive features that complement good tax compliance. With interest rates starting at just 7.99%*  p.a. and loan amounts up to Rs. 15 crore*, these home loans provide flexibility and affordability. The extended tenure of up to 32 years makes EMIs as low as Rs. 722/lakh*, making homeownership more accessible.

Check your eligibility for a Bajaj Housing Finance Home Loan today and take advantage of their quick approval process. You may already be eligible; find out by entering your mobile number and OTP.

Additional benefits of Bajaj Housing Finance Home Loans include:

• Approval within 48 hours* of application submission
• No foreclosure fees for floating interest rate loans
• Top-up loans up to Rs. 1 crore for existing customers
• Choice from over 5,000 pre-approved projects
• Doorstep document pickup service for convenience

With proper tax compliance through timely filing or using Section 139(8A) of Income Tax Act when needed, you can strengthen your financial profile and improve your chances of getting approved for a home loan with favourable terms. Check your eligibility now to see what home loan offers are available to you. You may already be eligible; find out by entering your mobile number and OTP.

*Terms and conditions apply

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