There is good news for taxpayers planning to file updated Income Tax Return (ITR-U). The Income Tax Department has opened the window to file updated returns for assessment years 2020-21 and 2022-23. Taxpayers who forgot to mention any of their income in the income tax return or made a mistake in giving the information can update their returns.
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Updated return filing started in 2022
The Income Tax Department has informed about this on the social media platform X.To file ITR-U , the taxpayer has to visit the e-filing portal ( incometax.gov.in ). The updated return was started in 2022. The facility of updated return was started for such taxpayers who missed filing income tax return for some reason, gave any wrong information in ITR or forgot to mention any of their income in the return.
Can be filed within 48 months from the end of the assessment year
Section 139(8A) of the Income Tax Act, 1961 deals with updated returns. It states that taxpayers can file updated income tax returns within 48 months from the end of the assessment year. Earlier this period was 24 months. In the Union Budget 2025, it was increased to 48 months.
Benefits of updated return facility
Sometimes, due to some compulsions, some taxpayers are not able to file returns. However, there is a facility to file belated returns for taxpayers who do not file returns till the deadline. But, there are some taxpayers who also miss filing belated returns. Belated returns can be filed till 31st July of the respective assessment year. If a taxpayer has neither filed a return nor filed a belated return, he can file an updated return i.e. ITR-U.
Who cannot file ITR-U
There are certain situations in which taxpayers are not allowed to file updated returns. If filing an updated return reduces the taxpayer’s tax liability or he has a refund claim, then he cannot file an updated return. If a taxpayer is subjected to income tax search or seizure or if a tax case is pending against him in court, then he cannot file an updated return.
You will have to pay more tax for filing ITR-U
Taxpayers have to pay additional tax for filing updated returns. If they file updated returns within 12 months of the end of the relevant assessment year, they will have to pay an additional 12 per cent tax. If a taxpayer files ITR-U within 12 to 24 months, they will have to pay 50 per cent additional tax. If they file within 24 to 36 months, they will have to pay 60 per cent tax and if they file within 36-48 months, they will have to pay 70 per cent tax.
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