ITR-U Defined: What Is It, Who Can File And Different Key Particulars

The Central Board of Direct Taxes (CBDT) has notified the Up to date Revenue Tax Return type, generally referred to as the ITR-U type. This comes after amendments launched in Finances 2025 that revised the foundations for submitting up to date returns.

Beginning April 1, 2025, taxpayers now have as much as 48 months — or 4 years — from the tip of the related evaluation yr to file an up to date ITR. It is a main change from the sooner rule, the place taxpayers got solely 24 months, or two years, to make such corrections. The prolonged timeline offers taxpayers extra flexibility to appropriate errors, report beforehand missed earnings, or make mandatory modifications of their earlier filed returns.

Let’s check out what precisely ITR-U is and when it’s best to use it. Listed here are all the important thing particulars you must know.

What Is ITR-U?

Have you ever ever made a mistake in your earnings tax return (ITR) and wished you possibly can repair it? Did you miss the deadline and face penalties? Possibly you forgot to report some earnings or declare deductions? If that’s the case, you are not alone.

To make the method extra versatile and clear, the federal government launched the up to date returns (ITR-U). This facility permits taxpayers to rectify and replace their earnings tax returns by disclosing extra earnings or correcting any errors of their authentic, belated, or revised returns.

It’s relevant for taxpayers who’ve:

Not filed their authentic or belated return
Made errors or omissions within the beforehand filed ITR
Missed reporting sure earnings
Filed an incorrect return or used the mistaken ITR type

When Are You Allowed To File ITR-U?

ITR-U could be filed solely after the tip of the related evaluation yr. For instance, earnings earned in FY 2024-25 (April 1, 2024 – March 31, 2025) might be assessed in AY 2025-26 (April 1, 2025 – March 31, 2026). As per the modification of Part 139(8A) of the Revenue Tax Act, 1961, after the Finances 2025, the taxpayers can file ITR-U in FY26 for Evaluation Years 2021-22 to 2024-25.

Deadlines To File ITR-U

As per the brand new guidelines, listed here are the deadlines for submitting up to date returns:

For incomes in FY 2023-24: March 31, 2029

For earnings in FY 2022-23: March 31, 2028

For missed earnings reporting in FY 2021-22: March 31, 2027

For incomes in FY 2020-21: March 31, 2026

Who Can File ITR-U?

Any taxpayer who has made a mistake or missed reporting earnings within the following varieties of returns is eligible to file an up to date return:

Unique return
Belated return
Revised return

You may as well file an up to date return in conditions akin to:

Not submitting the return in any respect, lacking each the unique and the belated deadlines.
Incorrect declaration of earnings.
Collection of the mistaken head of earnings.
Fee of tax at an incorrect charge.
To cut back carried ahead losses.
To cut back unabsorbed depreciation.
To cut back tax credit score below Sections 115JB or 115JC.

It’s essential to remember the fact that just one up to date return could be filed for a particular evaluation yr.

Who Can’t File ITR-U?

Submitting ITR-U isn’t allowed in these circumstances:

In case you have already filed an up to date return for a similar evaluation yr.
If you wish to file a 0 return or a return displaying a loss.
If you wish to declare or enhance the refund quantity.
If the up to date return results in a decrease tax legal responsibility than earlier than.
If search proceedings have been initiated below Part 132.
If a survey has been carried out below Part 133A.
If any books, paperwork, or belongings have been seized or requisitioned below Part 132A.
If an evaluation, reassessment, revision, or re-computation is both pending or accomplished.
If there is no such thing as a extra tax legal responsibility (for instance, when your tax dues are already coated by TDS or carried ahead losses).
If a show-cause discover has been issued below Part 148A after 36 months from the Evaluation 12 months.

How A lot Additional Tax Do You Want To Pay?

Submitting an up to date return comes at a value. You need to pay the extra tax as a share of the tax and curiosity due:

If ITR-U is filed inside 12 months after the tip of the evaluation yr, an extra 25% tax plus curiosity applies.
For filings between 12 and 24 months, the extra tax will increase to 50% plus curiosity.
If filed between 24 and 36 months, the taxpayer should pay 60% of the extra tax together with curiosity.
For filings between 36 and 48 months, 70% of the extra tax is payable, together with curiosity.

The ITR-U is a welcome transfer for sincere taxpayers who could have made real errors or missed deadlines. It helps keep away from penalties, curiosity, and attainable authorized motion sooner or later. Nonetheless, it’s essential to make use of this provision responsibly and throughout the prescribed time-frame.