The Central Board of Direct Taxes (CBDT) has notified the revised Form ITR-U under Notification No. 49/2025, published in the Official Gazette. This new form replaces the earlier version of ITR-U in Appendix-II of the Income-tax Rules, 1962.
The updated return form, applicable under Section 139(8A) of the Income-tax Act, 1961, enables taxpayers to update their income within 48 months from the end of the relevant assessment year. The move reflects the government's ongoing efforts to promote voluntary tax compliance and offer a structured path for taxpayers to rectify previously filed returns or file missing returns.
Key Highlights of the Revised ITR-U Form
1. Eligibility Clarification: Taxpayers must confirm eligibility as per the conditions outlined in the first to fourth provisos of Section 139(8A).
2. Expanded Reporting Requirements: The new form mandates detailed disclosures on:
- Additional income across heads (salary, house property, business/profession, capital gains, other sources).
- Computation of tax payable/refundable.
- Timeline of filing (categorized into four 12-month blocks within the 48-month window).
- Reasons for updating income (e.g., previously unreported income, incorrect income head, wrong tax rate, etc.).
3. Separate Disclosure of Relief & Tax Payments: Section 89 relief, tax paid under Section 140B, and advance/self-assessment/regular taxes not claimed earlier must be disclosed distinctly.
4. Enhanced Verification Process: The form includes a detailed verification declaration to be signed by the taxpayer.
This amendment will be effective from the date of its publication in the Gazette, i.e., May 19, 2025.
Implications for Taxpayers and Professionals
Taxpayers who missed filing or made errors in their original returns now have a simplified and formal mechanism to rectify their mistakes. Tax professionals and CA firms should take note of the updated form and guide clients accordingly, especially given the structured timelines and tax liability calculations under Section 140B.
For complete compliance, it is crucial to file the revised ITR-U accurately using the utility provided on the income tax e-filing portal, adhering to the specific guidelines and drop-down selections mentioned in the form.
Official copy of the notification has been attached
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