ITR-U now open: Update your past ITR mistakes for AY 2021-22 and 2022-23
advertisementIn other words, the Income Tax Department has now made it possible to file updated returns (ITR-U) for Assessment Years (AY) 2021-22 and 2022-23 using the ITR-1 and ITR-2 forms. This move aims to help people fix any errors or income details they may have missed earlier.
This change is part of a larger plan to make tax filing more flexible and transparent.WHAT IS ITR-U?ITR-U stands for 'Updated Return'. It's a special return form that lets taxpayers fix their old income tax returns, be it for wrongly declared income, missed income, or even if the return wasn't filed at all.Let's say you forgot to include some interest income or didn't file your return on time—you can now use ITR-U to sort that out.WHAT CHANGED IN 2025?The big change is the extra time you get to file ITR-U. Instead of two years, the government now gives you four years from the end of the relevant assessment year.For example, for AY 2023-24, if you missed filing the return, you still have time from 1 January 2024 to 31 March 2026 to submit your ITR-U.WHO CAN FILE?Any person can file an updated return if they missed filing their original or belated return within the deadline.It is also useful for those who made mistakes while reporting their income or chose the wrong head of income, such as declaring salary income under business income by error. Taxpayers who wish to reduce unabsorbed depreciation or adjust tax credits from previous years can also make use of this option.Additionally, if someone failed to report certain income earlier and now needs to pay extra tax, filing an updated return allows them to correct the record and stay compliant with tax laws.EXTRA TAX TO BE PAIDThere's a catch when it comes to filing an updated return, you'll need to pay additional tax on top of your normal dues.If the ITR-U is filed within 12 months from the end of the relevant assessment year, you'll have to pay 25% extra on the total tax and interest due. This rises to 50% if filed between 12 and 24 months, 60% if filed between 24 and 36 months, and 70% if the return is submitted between 36 and 48 months.advertisementThis extra charge is calculated on the combined amount of tax and interest owed, so the longer you wait, the more you pay.WHY THIS MATTERSThis move gives people a fair chance to correct past mistakes and avoid future trouble with the tax office. It's especially helpful for those who missed reporting small incomes or forgot to file returns altogether.So, if you realise you made an error in your return or skipped filing, take advantage of this extended window, file your ITR-U, and stay on the right side of the law.- Ends
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Eligibility to file ITR-1 Different ways to file ITR-1 Step-by-step guide to file ITR-1 online on income tax e-filing website Step 3 Step 6 Step 7 Section 1: Personal Information Step 8 Section 2: Gross Total Income Gross salary – Less: Allowances exempted u/s 10 Less: Income relief claimed u/s 89A Net salary Less: Standard Deduction Income chargeable under the head Salaries Gross rent received Rs 3,60,000 Tax paid to authorities (Rs 1,000) Annual Value Rs 3,59,000 30% of Annual Value (Rs 1,07,700) Interest payable on borrowed capital (Rs 4,00,000) Arrears received during the year less 30% NIL Income chargeable under House property (Rs 1,48,700) House Property Reporting of exempt income LTCG under Section 112A not chargeable to Income Tax Section 3: Total deduction Section 4: Tax paid Section 5: Verify your tax liability Many salaried employees use ITR-1 to file their tax returns since they don't usually have complex income sources. 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