CBDT notifies ITR-U: Know who can file updated return, penalty, last date to file
The Central Board of Direct Taxes (CBDT) has notified the Income Tax
Updated Return
form, commonly called the
ITR-U
form. The new form has been notified as the July Budget 2024 amended the rules for filing ITR-U.
As per the new rules, ITR-U can be filed within 48 months from the end of the relevant assessment year. Earlier, taxpayers were allowed to file the updated return within 24 months from the end of the relevant assessment year. Now, taxpayers get an extra two years to file updated returns.
Also read:
9 changes in ITR-1, ITR-2, ITR-3, ITR-4 for ITR filing 2025
Who can file ITR-U?
The income tax rules specify the conditions under which a taxpayer can file the updated return. The tax return using ITR-U can be filed regardless of whether the taxpayer filed an ITR in the relevant assessment year. If the ITR is filed in the relevant assessment year, then the taxpayer is required to provide the acknowledgement number of the original ITR.
Some of the conditions for filing ITR-U are income not reported correctly, ITR not filed previously, wrong heads of income chosen,
wrong tax rate
, etc.
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ITR-U cannot be filed if it leads to reduced income or a claim for an
income tax refund
.
When can ITR-U be filed?
The income tax rules specify that ITR-U can be filed after the end of the relevant assessment year. Here is an example to understand this.
The last date to file the ITR for FY 2024-25(AY 2025-26) is July 31, 2025. If the ITR is not filed by this date, the taxpayer can file a belated ITR by December 31, 2025. However, if the taxpayer does not file the ITR by December 31, 2025, the updated return can be filed using ITR-U from April 1, 2026 onwards.
This is because the assessment year for FY 2024-25 ends on March 31, 2025. According to the updated return filing rules, ITR-U can be filed within 48 months of the end of the assessment year.
The assessment year is the year in which assessment of income earned in the previous fiscal year (a year ago) is done. This is done by filing an income tax return. The income earned between April 1, 2024 and March 31, 2025, is assessed between April 1, 2025 and March 31, 2026. Hence, for FY 2024-25, the assessment year (AY) is 2025-26.
Last date to file ITR-U
According to income tax rules, the last date to file ITR-U is 48 months from the end of the relevant fiscal year. Hence, for AY 2025-26, the last date to file ITR-U is March 31, 2030.
Penalty applicable on filing ITR-U
A penalty applies to filing an updated return using ITR-U, depending on how quickly the ITR is filed.
According to income tax rules, 25% of an additional tax on aggregate tax and interest is levied if the updated ITR is filed within 12 months from the end of the assessment year. This will hike to 50% as an additional tax if the updated return is filed between 12 months and 24 months. If the updated return is filed between 24 months and 36 months, then 60% as an additional tax is payable by the taxpayer. For updated returns filed between 36 months and 48 months, 70% of the additional tax is payable by the taxpayer.
A taxpayer is required to select the period during which ITR-U is filed from the drop-down menu.
ITR-U once filed must be verified as well.
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