Tax News Update: Release of Excel Utility for ITR-6, applicable for corporates
The Income Tax Department has made it possible for taxpayers to file updated returns for Assessment Years 2021-22 and 2022-23. This update includes the availability of utilities for filing updated returns using ITR-3, ITR-4, and ITR-6.
The release of the ITR-6 utility followed the release of ITR-5 utility by the Income Tax Department, approximately six days apart. It is important to note that ITR-6 is a specific tax return form used by companies that do not claim exemption under Section 11, which typically includes charitable or religious trusts.
For companies filing ITR-6, the updated utility for the current Assessment Year, 2025-26, is now live. However, the updated utilities for ITR-6 for Assessment Years 2021-22 and 2022-23 have not been explicitly highlighted yet. However, following the general framework, companies filing ITR-6 can potentially use the updated utility for these years if enabled by the IT department.
Taxpayers should confirm on the income tax e-filing portal if ITR-U filing for ITR-6 is enabled for those years.
For those filing updated returns using ITR-3 and ITR-4 for Assessment Years 2021-22 and 2022-23, the deadlines for submitting updated returns are: - AY 2021-22 (FY 2020-21) — up to 31st March 2026 - AY 2022-23 (FY 2021-22) — up to 31st March 2027
Eligibility and filing requirements for ITR-U include providing PAN, name, Aadhaar number, Assessment year, and selecting if the original return was filed. Detailed information about the original return filing, reasons for filing updated return, and whether the update is filed within 12 to 48 months from the end of the assessment year are also required.
Additional tax penalties on updated returns vary based on delay. Within 12 months from the end of the Assessment Year, a 25% additional tax on tax and interest is imposed. For delays between 12 and 24 months, 50% additional tax is levied. Delays between 24 and 36 months attract a 60% additional tax, while delays between 36 and 48 months incur a 70% additional tax.
Before the release of ITR-3 utilities, the online utilities for filing ITR-1, ITR-2, and ITR-4 were already available. The utilities for filing ITR-4 returns are also now available for updated returns.
In essence, for AY 2021-22 and 2022-23 updated returns, filing using ITR-U is allowed with deadlines 31 March 2026 and 31 March 2027 respectively, and penalties apply based on timing; for ITR-6, updates for these years may not yet be fully enabled but are expected following the pattern of other ITR forms.
Companies engaged in business might find it beneficial to check the income tax e-filing portal for the availability of ITR-U filing for Assessment Years 2021-22 and 2022-23, as this utility is used for filing updated returns with ITR-6, a form for companies that do not claim exemption under Section 11. Businesses should be aware of the implications of delayed filings, with additional tax penalties of up to 70% if the update is filed more than 36 months from the end of the assessment year.
