CBDT

Central Board of Revenue Act, 1924 was initially responsible for both direct and indirect taxes. However, on 1 January 1964, the Board was bifurcated into two separate entities: the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC). This division was formalized through the constitution of the two Boards under Section 3 of the Central Board of Revenue Act, 1963.

Introduction:

Its functions include formulation of policies, dealing with matters relating to levy and collection of direct taxes, and supervision of the functioning of the entire Income Tax Department. 

CBDT also proposes legislative changes in direct tax enactments and changes in rates and structure of taxation in tune with the policies of the Government.

Associated bodies:

  1. Income Tax Department:

The Income Tax Act, 1961, has a wide scope and empowers ITD to levy tax on the income of individuals, firms, companies, local authorities, societies, or other artificial juridical persons.[8] Thus, the Income Tax Department influences businesses, professionals, NGOs, income earning citizens, and local authorities, among others. The act empowers the Income Tax Department to tax international businesses and professionals and therefore ITD deals in all matters of double taxation avoidance agreements and various other aspects of international taxation such as transfer pricing. Combating tax evasion and tax avoidance practices is a key duty of ITD to ensure constitutionally guided political economy. One measure to combat aggressive tax avoidance is the general anti avoidance rule (GAAR).

 

  1. Investigation Division of the Central Board of Direct Taxes

The Investigation Division of the Central Board of Direct Taxes (CBDT) is responsible for enforcing tax laws and investigating cases related to direct taxes in India. It operates under the Department of Revenue, Ministry of Finance and plays a crucial role in tackling tax evasion and financial crimes.

 

  1. Directorate General of Income Tax Investigation

The Directorate General of Income Tax Investigation (DGITI) is a law enforcement agency under the Ministry of Finance, Government of India. It operates under the Investigation Division of the Central Board of Direct Taxes (CBDT) and is responsible for investigating violations of India's tax laws, including fraud, evasion, and money laundering.

 

  1. Chief Commissioner of Income Tax Central

The Chief Commissioner of Income Tax (CCIT-Central) is a senior officer in the Income Tax Department of India, responsible for overseeing tax administration, enforcement, and compliance. The CCIT-Central plays a crucial role in assessing tax evasion cases and providing intelligence inputs to the government.

CBDT Notifies Revised ITR-U Form for Filing Updated Returns Under Section 139(8A)

The Central Board of Direct Taxes (CBDT) has introduced a revised ITR-U form, allowing taxpayers to file updated returns under Section 139(8A) of the Income Tax Act. This update, effective from April 1, 2025, extends the filing window and introduces new conditions for compliance.

ITR-U is a special form that allows you to update or correct your income tax return — even if you forgot to file it earlier or missed reporting some income.

Key Changes in the Revised ITR-U Form

  1. Extended Filing Window: Taxpayers now have 48 months (previously 24 months) from the end of the relevant assessment year to file an updated return.
  2. Additional Tax Liabilities:
    1. Filing within 12 months: 25% additional tax on the aggregate tax and interest.
    2. Filing within 24 months: 50% additional tax.
    3. Filing within 36 months: 60% additional tax.
    4. Filing within 48 months: 70% additional tax.
  3. Restrictions on Filing:
    1. Taxpayers cannot file ITR-U if it results in reduced income or a tax refund claim.
    2. If a show-cause notice under Section 148A is issued after 36 months, ITR-U cannot be filed unless the assessing officer determines the case does not qualify for reassessment.
  4. Amendments to Tax Laws:
  5. Section 140B updated to reflect higher tax rates for delayed filings.
  6. Rule 12AC modified to incorporate changes in the ITR-U process.

Why ITR-U is Important

  1. Correction of Errors – If you missed reporting income, claimed incorrect deductions, or made mistakes in tax calculations, ITR-U allows you to fix them.
  2. Avoiding Penalties – Filing an updated return helps prevent penalties or legal consequences for inaccurate tax filings.
  3. Compliance Opportunity – If you failed to file your return within the due date or missed the belated return deadline, ITR-U provides an additional window to comply.
  4. Extended Filing Period – Taxpayers now have 48 months from the end of the relevant assessment year to file an updated return.
  5. Transparency & Accuracy – It ensures tax records are accurate, reducing the chances of scrutiny or reassessment by tax authorities.

However, ITR-U cannot be used to claim refunds or reduce tax liability. It is strictly for rectifying errors and ensuring compliance.

Implications for Taxpayers

The revised ITR-U form provides taxpayers with a structured mechanism to correct errors or omissions in previously filed returns. However, the additional tax liabilities and filing restrictions emphasize the importance of timely compliance.

To file an updated return using ITR-U, you will need the following documents:

Essential Documents

  1. PAN Card – Required for identity verification.
  2. Aadhaar Card – Needed for e-verification.
  3. Form 16 – If you are a salaried individual, this form contains details of your income and tax deductions.
  4. Form 26AS – A tax credit statement showing TDS, advance tax, and high-value transactions.
  5. Bank Statements – To verify income sources, deductions, and tax payments.
  6. Salary Slips – If Form 16 is unavailable, salary slips help calculate taxable income.
  7. Investment Proofs – Documents related to Section 80C, 80D, HRA, and other deductions.
  8. ITR Acknowledgment of Previous Filing – If you are updating a previously filed return.
  9. Challan (ITNS 280) – Proof of additional tax payment before filing ITR-U.

Process of file UTR-U

Step-by-Step Process

  1. Log in to the Income Tax Portal
    1. Visit the official Income Tax e-filing website and log in using your credentials.
  2. Select the ITR-U Form
    1. Navigate to the "File Returns" section and choose ITR-U under Section 139(8A).
  3. Choose the Assessment Year
    1. Select the relevant Assessment Year (AY) for which you want to file the updated return.
  4. Provide Reason for Updating
    1. Specify the reason for filing ITR-U, such as income not reported correctly, wrong tax rate applied, or missed filing.
  5. Calculate Additional Tax
    1. Based on the time elapsed since the original filing, additional tax applies:
    2. Within 12 months: 25% additional tax.
    3. Within 24 months: 50% additional tax.
    4. Within 36 months: 60% additional tax.
    5. Within 48 months: 70% additional tax.
  6. Fill in the Updated Income Details
    1. Enter the revised income details and compute the tax liability.
  7. Pay the Additional Tax
    1. Generate a challan (ITNS 280) and pay the required tax amount.
  8. Submit and Verify
    1. Review the details, submit the form, and verify using Aadhaar OTP, Net Banking, or DSC.
  9.  Download the Acknowledgment
    1. After successful submission, download the ITR-U acknowledgment for future reference.

Conclusion:

The revised ITR-U form, introduced by the Central Board of Direct Taxes (CBDT) under Section 139(8A), provides taxpayers with an extended window to rectify errors in previously filed returns. With a 48-month filing period, individuals can ensure tax compliance while avoiding legal consequences. However, the additional tax liabilities imposed based on delayed filings highlight the importance of timely reporting.

While this update enhances flexibility, taxpayers should be mindful that ITR-U cannot be used to claim refunds or reduce taxable income—it strictly serves to rectify omissions and ensure accuracy in tax filings. Staying informed about these changes will help individuals make better financial decisions while adhering to tax regulations.

The CBDT is crucial because it ensures a smooth, transparent, and efficient tax system, which is vital for the economic health of the country.