Understanding ITR-U

ITR-U was introduced by the Government under the Finance Act 2022, and it made amendments in the guidelines through the Finance Act 2025. ITR-U or updated return allows taxpayers to rectify their errors and declare any unreported income under section 139(8A) of the Income Tax Act. However, there is a specified time limit within which the updated return must be filed. Let us know the due date to file ITR-U.

Due Date to File ITR-U

ITR-U can be filed within 48 months from the end of the relevant assessment year. For example, for AY 2025-26, the last date to file ITR-U will be March 31, 2030.

March 31, 2025, was the last date to file an updated return for the FY 2021-22.

Are Taxpayers Required to Pay Extra Taxes?

Taxpayers who are filing ITR-U are required to pay extra tax. The later you file your ITR-U, the more extra tax you pay.

• If you file ITR-U within 12 months from the end of the assessment year, you will be required to pay 25% extra tax.
• If the ITR is filed within 24 months, the extra tax goes up to 50%.
• For 36 months, the extra tax is 60%.
• For 48 Months, taxpayers will be required to pay an extra tax of 70%.

Eligibility to File ITR-U

The updated return can be filed by any taxpayer who has made an error or forgotten to declare some income details in their original ITR, revised return, or belated return. But there are some exceptions to filing ITR-U. It cannot be filed by the following taxpayers:

• If you are trying to claim or increase your refund.
• If your updated return shows less tax than before.
• If you are filing a ‘nil return‘ or a loss return
• If you have already filed an updated return
• If your books, documents or assets are seized by the Income Tax Department.
• If there is an ongoing search proceeding under section 132 of the Income Tax Act against you.
• If you have received a notice or have a pending assessment or reassessment, or revision.