Updated on September 12, 2025 03:50:09 PM
ITR-U filing is a golden opportunity for taxpayers who missed filing their Income Tax Return or need to update their previously filed ITR. The government first proposed the concept of an Updated Income Tax Return (ITR-U) in the Union Budget 2022, and it has since been strengthened in the Finance Act 2025. Under this scheme, a taxpayer can file ITR-U to voluntarily disclose omitted income, correct mistakes, or rectify wrong reporting. The filing must be accompanied by the payment of additional tax as specified by the CBDT. This initiative encourages voluntary compliance and reduces the chances of future disputes with the Income Tax Department.
From 1st April 2025, the time limit for filing ITR-U has been extended to 48 months (4 years) from the end of the relevant assessment year, compared to the earlier limit of 24 months. This extended window provides taxpayers with more flexibility and time to revisit their returns and ensure accuracy. It also safeguards them from penalties and legal consequences of non-disclosure, while generating additional revenue for the government. By giving taxpayers a longer period to amend their returns, the government aims to build trust and create a culture of voluntary and transparent tax compliance in India.
Form ITR-U Filing Certificate [Sample]
Table of Content
ITR-U stands for Updated Income-Tax Return. Suppose you missed filing your tax returns within the due date or discovered some financial information that should have been included in your prior ITRs. In such cases, The central government provided an opportunity to file the updated income-tax return in the form of a new provision called ITR-U filing.
The provision enables a taxpayer to rectify the errors made while filing their previous ITRs or an ITR of the past 2 years missed by any taxpayer.
The Central Board of Direct Taxes (CBDT) introduced the updated return rules through Section 139(8A) of the Income Tax Act. Taxpayers who are eligible to file an updated return must use the ITR-U form, and it has to be verified in the manner prescribed in the notification.
From 1st April 2025, the time limit to file an updated return (ITR-U) has been extended to 48 months (4 years) from the end of the relevant Assessment Year. Earlier, the limit was 24 months.
Any individual, Partnership Firm, Limited Liability Partnership, Hindu Undivided family or Association of persons who falls under the following category are eligible for filing the ITR-U form :-
According to the official notification from the Central Board of Direct Taxes, the following reasons are acceptable for filing an Updated return form (ITR-U).
Note: A person can file only one updated return(itr-u) for each assessment year
The taxpayers get the opportunity to rectify the errors made in their original ITRs and Annual Information Statement (AIS). It also permits to file an updated or missed returns after paying an additional tax levied for the filing of ITR-U. The additional tax can be referred to as the late fees for belated return filing.
The additional tax structure for updated returns is as follows:
For Example - If your Total liable tax of FY 2021-22 was Rs. 10,000 and you file the ITR-U form in FY-2022-23(within 12 months), you need to pay an additional Rs. 2500 as a late fee. It makes a total of Rs. 12,500 to be paid.
For Example - If your Total tax amount for FY 2020-21 was Rs. 10,000 and you filed the ITR-U form in FY-2022-23(between 12 months and 24 months), you need to pay an additional Rs. 5,000 as a late fee. It makes a total of Rs. 15,000 to be paid.
You need to file the updated return within the time limit of 48 months (4 years) from the end of the relevant Assessment Year. The extended provisions regarding ITR-U are effective from 1st April 2025.
Explanation - You can file an updated return for a particular Assessment Year within 48 months from the end of that AY by paying additional tax as follows:
Filing an Updated Income Tax Return (ITR-U) not only gives taxpayers more time to correct or declare income but also helps them avoid penalties, maintain compliance, and enjoy greater peace of mind.
Time Relaxation for Taxpayers: Even if the deadline for filing Original ITR, Belated ITR, or Revised ITR has slipped or passed, taxpayers now have a further 48 months to file their Income Tax Return under ITR-U.
Saves from Hassles of Law: ITR-U was introduced by the Government of India to help taxpayers comply with their tax responsibilities and avoid unnecessary legal hassles.
Massive Return Count: Not only do taxpayers benefit from updated returns, but the government also generates significant revenue in the form of additional taxes. CBDT estimates around 1 lakh returns have been filed through ITR-U.
More Transparency: Taxpayers must provide valid reasons while updating their returns, ensuring more transparency and reducing the chances of future tax notices.
Avoids Penalty or Legal Actions: The penalty for undisclosed or non-filed income is extremely high compared to the additional tax levied under ITR-U. Filing protects taxpayers from heavy penalties and legal consequences.
The process of filing income tax returns may seem a never ending process if you are not fully aware of the latest rules regarding taxes. It is advised to seek an expert like Professional Utilities to make the entire process effortless. We have got the skilled tax professionals to help you get all the requirements and assist you throughout the process of filing an updated ITR.
Contact our team to file your ITR-U form within 7 working days with Professional utilities:
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At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
Frequently Asked Questions
ITR-U (Updated Income Tax Return) is a special form that allows taxpayers to declare omitted income or correct mistakes in their earlier ITR. Any taxpayer who missed reporting income or filed incorrect details can file ITR-U, provided the return does not result in a loss, increased refund, or NIL return.
From April 2025, the time limit for filing ITR-U has been extended to 48 months (4 years) from the end of the relevant assessment year. Earlier, it was only 24 months. This gives taxpayers more flexibility to correct or update past returns.
The additional tax (over and above your normal tax and interest) depends on when you file the updated return:
No. ITR-U cannot be used to file a NIL return or to claim or increase a refund. It is only meant for updating taxable income where tax has been under-reported or missed earlier.
A taxpayer can file ITR-U only once for a particular Assessment Year. Once an updated return is filed, you cannot revise or re-submit it again for the same year.
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