Rashmi
Quick Summary
The Central Board of Direct Taxes (CBDT) has amended the rules for filing ITR-U (Updated Return), as announced in Budget 2025. The new norms came into force from April 1, 2025, and allow taxpayers a significantly longer window- 48 months from the end of the relevant assessment year- to rectify past
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FAQ :
ITR-U (Updated Return) is a facility that allows taxpayers to voluntarily update their income tax returns even after the usual filing deadlines have passed, to correct errors or omissions.
The window for filing an ITR-U has been extended to 48 months (four years) from the end of the relevant assessment year.
You can use ITR-U to report omitted income, incorrectly reported income, or incorrectly selected income heads or tax rates.
An ITR-U cannot be used to reduce your total income, claim additional refunds, or declare losses.
Yes, filing an ITR-U attracts additional tax over and above the regular tax and interest, with the rate depending on how late the updated return is filed, ranging from 25% to 70%.
Any taxpayer can file an ITR-U, whether they filed a return for the relevant assessment year or not, provided certain conditions are met and it doesn't reduce their tax liability.
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