1. The CBDT has issued Income-tax (Eleventh Amendment) Rules, 2022 vide Notification No. 48/2022 dated April 29, 2022 to insert Rule 12AC of the Income Tax Rules, for updated return of Income i.e., Form ITR-U under Section 139(8A) of the Income Tax Act, 1961.

2. The Finance Act, 2022 has introduced a new concept of updated return, wherein it allows up to 24 months to file the return of income. The CBDT has notified a new Rule 12AC and new Form ITR-U for filing of such updated return of income

3. Rule 12AC of the IT Rules states that updated return under Section 139(8A), relating to the assessment year commencing on April 01, 2020 and subsequent assessment years, shall be in the Form ITR-U and be verified in the manner indicated therein.

4. ITR U requires the following to be filled up:

a. The reasons for updating the income whereby the eligible person has to choose from the options provided;

b. The disclosure whether the updated return is being filed during the period upto 12 months from the end of the relevant AY or between 12 to 24 months from the end of the relevant assessment year;

c. The person filing the updated return is also required to affirm that eligibility criteria as per the conditions laid out in first, second and third provisos to Section 139(8A) are met;

d. A disclosure whether the updated return is leading to reduction in c/f loss or unabsorbed depreciation or tax credit and if so the assessee is also required to specify the AYs getting affected due to the updated return.