The form known as ITR-U, or Updated Income Tax Return, enables you to update your previous ITR and correct any mistakes or omissions. After the relevant evaluation year ends, it can be filed within two years. In the Union Budget 2022, the government introduced the idea of updated returns.
It is not possible to file amended or belated ITRs after the AY’s December 31st. To fix small mistakes or omissions in your first ITR, you can submit an amended return utilising the ITR-U form effective January 1st of AY. You are unable to enhance losses, claim refunds, or lower the taxes owed with ITR-U.
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What is ITR-U?
Taxpayers can use the ITR-U, or Updated Income Tax Return, form to update their ITRs by fixing mistakes or omissions. They can also use it to file an ITR if they haven’t filed it by the deadline and haven’t filed the belated return within two years of the end of the relevant assessment year. For instance, you can file an ITR-U after the assessment year ends, on March 31, 2024, but within two years later, on March 31, 2026, if you filed an ITR for AY 2023–2024 and missed the revised/belated return filing window. Please take note that as of January 1, 2024, ITR-U filing for AY 2023–2024 has begun.
You have two years to update your ITR under Section 139(8A) of the Income Tax Act. From the end of the year in which the initial return was filed, two years will be computed. ITR-U was created to maximise taxpayer tax compliance without inciting legal action.
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Who can File ITR-U under Section 139(8A)?
An updated return may be filed by someone who has made a mistake or failed to include specific income information on any of the following returns:
either the original income return, the late return, or
Updated return
The following situations allow for the filing of an updated return:
- didn’t submit the return. The late return deadline and the missed return filing deadline
- Income is not accurately reported.
- selected the incorrect revenue source
- paid taxes at an incorrect rate.
- To reduce the loss that is carried forward
- To reduce the depreciation that is not absorbed
- To lower the tax credit under sections 115JB and 115JC
For every assessment year (AY), a taxpayer is only permitted to submit one amended return.
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Who is Not Eligible to File ITR-U u/s 139(8A)?
The following situations stop ITR-U from being filed:
- A revised return has already been submitted.
- For submitting a loss or nil return
- for requesting or increasing the amount of the refund.
- When a revised return reduces the amount of taxes owed
- A search under Section 132 has been started against you.
- A survey u/s 133A is carried out.
- Under Section 132A, the Income Tax authorities may confiscate or request books, records, or assets.
- whether the evaluation, reevaluation, correction, or recalculation has been finished or is still waiting.
- You cannot file an updated ITR if there is no new tax outgo (if the tax liability is adjusted with TDS credit/losses and you do not have any additional tax liability).
Note: If providing an updated return of income for the previous year results in the loss or a portion of it being carried forward, unabsorbed depreciation being carried forward, or tax credit being carried forward being reduced for any subsequent previous year, then an updated return must be provided for each subsequent previous year.
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What is the Time Limit to File ITR-U?
A significant modification to income tax return filings is brought about by the 2025 budget: the deadline for Updated Returns (ITR-U) has been extended from two to four years. The effective date of this extension is April 2025.
For example, under the previous regulations, you had until March 2027 to file an updated return if you filed your ITR for the financial year 2023–2024 (assessment year 2024–25). Your current deadline is March 31, 2029 under new regulation.
The table displays the data over the preceding Five years.
| Financial & Assessment Year | Last date to file ITR-U |
| FY 20-21 (AY 2021-22) | 31st March 2026 |
| FY 21-22 (AY 2022-23) | 31st March 2027 |
| FY 22-23 (AY 2023-24) | 31st March 2028 |
| FY 23-24 (AY 2024-25) | 31st March 2029 |
| FY 24-25 (AY 2025-26) | 31st March 2030 |
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Should you Pay Additional Tax when Filing ITR-U?
Yes, Depending on the filing timeframe, an additional tax, expressed as a percentage of the additional tax (tax + interest) due must be paid when submitting an ITR-U:
| ITR-U filed within | Additional Tax |
| 12 months from the end of relevant AY | 25% of additional tax (tax + interest ) |
| 24 months from the end of relevant AY | 50% of additional tax (tax + interest) |
| 36 months from the end of the relevant AY | 60% of additional tax (tax + interest ) |
| 48 months from the end of the relevant AY | 70% of additional tax (tax + interest ) |
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