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.

The post ITR-U Explained: Who Can File Updated Returns and What You Need to Know first appeared on Rightsofemployees.com.

Taxpayers who want to update their income tax returns of previous years can file updated returns before March 31. Although you can file updated returns anytime but it should be within two years of the end of the respective assessment year. This means that those who want to update their returns for assessment year 2022-23 or financial year 2021-22 will have to file updated returns before March 31, 2025. The provision of filing updated returns was introduced in the Finance Act 2022 when Finance Minister Nirmala Sitharaman announced the facility of updated returns, in which taxpayers can file updated returns to correct errors or omissions. Apart from this, it was introduced on payment of tax.

Why updated returns are necessary

The two major reasons for introducing updated returns were to avoid litigation and encourage voluntary taxation. When tax officials detect tax evasion, the matter goes through a lengthy process of litigation. To prevent this, the Finance Ministry allowed taxpayers to file an updated return by paying the additional tax that they failed to pay when it was due. When it was launched in 2022, the maximum time limit was 2 years. In Budget 2025, this time limit has been extended to 48 months.

Which deadlines are expiring on 31st March?

Taxpayers can file updated returns for any previous year such as FY 2021-22 and 2022-23, but for FY 2021-22, the last date is March 31, 2025. It can be filed by any taxpayer in any case except in certain exceptional circumstances. A person can file an updated return even if he has previously filed a return of loss under section 139(3) for the relevant assessment year, but the updated return cannot be a tax return of loss.

The post Income Tax Deadline: Taxpayers can file an updated return before March 31 for THIS year, check details first appeared on Rightsofemployees.com.