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First Post
28-05-2025
- Business
- First Post
Deadline extended, new form notified: Why filing income tax returns will be different this year
The Central Board of Direct Taxes (CBDT) has extended the deadline to file income tax returns (ITRs) from July 31 to September 15, 2025. This extension is part of several changes introduced in the ITR filing process this year. One such change is the introduction of Form ITR-U (Income Tax Updated Return), notified on May 19, which allows taxpayers to file or revise returns for up to 48 months read more The last date for filing ITRs has been moved from July 31 to September 15, 2025. (File Image) Filing income tax returns (ITRs) for the assessment year 2025-26 will be a bit different this time. The Central Board of Direct Taxes (CBDT) has issued all seven ITR forms. These now include some changes in how people report capital gains. On Tuesday, the CBDT also pushed the . The last date has been moved from July 31 to September 15, 2025. So, what's new this year? We explain everything you need to know in this explainer. STORY CONTINUES BELOW THIS AD Let's take a look: Deadline extended for filing ITRs The last date to file income tax returns for the assessment year 2025-26 has been shifted. It was earlier set for July 31, 2025, but now the new deadline is September 15, 2025. As per the Central Board of Direct Taxes, this move aims to address concerns raised by stakeholders. It also gives more time for taxpayers to meet the requirements properly, helping to keep the process accurate and in order. Kind Attention Taxpayers! CBDT has decided to extend the due date of filing of ITRs, which are due for filing by 31st July 2025, to 15th September 2025 This extension will provide more time due to significant revisions in ITR forms, system development needs, and TDS credit… — Income Tax India (@IncomeTaxIndia) May 27, 2025 In its press note, the CBDT shared that the ITR forms for AY 2025-26 have been revised. These changes were made to make filing easier, bring more clarity, and allow for better reporting of information. Because of the updates, more time was needed to develop and test the systems that support these forms, the CBDT said. STORY CONTINUES BELOW THIS AD It added that the deadline was extended to September 15 to allow time for system upgrades and the launch of the ITR filing tools for AY 2025-26. Even though all the forms are now available, taxpayers still cannot file their returns. This is because the e-filing tools, the software used to submit the forms on the tax website, are not ready yet. So, while the forms can be downloaded, online filing will have to wait until the tools are working. New form 'ITR-U' launched The ITR forms from ITR-1 to ITR-7, along with the ITR-V form, have all been released. This year, a new form has also been notified- ITR-U (Income Tax Updated Return). Introduced on May 19, it lets taxpayers file or revise returns for up to 48 months, under the latest Finance Act. This means returns can now be updated for the assessment years 2021-22, 2022-23, 2023-24, and 2024-25. In its press note, the CBDT shared that the ITR forms for AY 2025-26 have been revised. (File Image) The Finance Act, 2025, has increased the time limit from the earlier 24 months. The government has also changed Section 139(8A) of the Income Tax Act. STORY CONTINUES BELOW THIS AD As per the new rules, ITR-U cannot be filed if a show-cause notice under Section 148A is issued more than 36 months after the end of the relevant assessment year. However, if the assessing officer decides under Section 148A(3) that reassessment is not needed, then ITR-U can still be filed within 48 months. Some rules still apply. Taxpayers cannot use ITR-U to claim refunds or to carry forward losses. They also cannot reduce the income that was reported in an earlier return. New rules for reporting capital gains The exemption limit for long-term capital gains (LTCG) on listed shares and equity mutual funds has been raised from Rs 1 lakh to Rs 1.25 lakh. This move is meant to support small investors. Taxpayers who have LTCG up to Rs 1.25 lakh and no capital loss to carry forward can now use the simpler ITR-1 or ITR-4 forms. Earlier, they had to fill out ITR-2 or ITR-3, even if they did not owe any tax. The revised ITR-1 and ITR-4 forms now have dedicated fields to report exempt LTCG under Section 112A. This change is expected to ease the process for salaried individuals and small business owners. STORY CONTINUES BELOW THIS AD However, if you have short-term capital gains or any capital losses that you want to carry forward, you will still need to use one of the other ITR forms. As the Budget 2024 introduced new tax rates for capital gains, the Capital Gains Schedule has been updated. Now, gains must be reported separately for periods before and from July 23, 2024, so the correct tax rates can be applied. Tax on buyback of shares From October 1, 2024, companies will no longer pay tax on buying back their shares. Instead, investors must report the amount received as a deemed dividend under 'Other Income' in their ITR. Any capital loss linked to the buyback must be shown separately. ITR-5 and ITR-6 have been updated to reflect this change. ITR-5 now allows only genuine buyback losses, provided the dividend has been taxed. ITR-6, which is for companies, now includes new sections for reporting capital gains, income from cruise operations, and diamond-related profits. Taxpayers cannot use ITR-U to claim refunds or to carry forward losses. (News18/File Image) Reporting payments to MSMEs If you earn income from a business or profession, you now need to mention how many days it took to make payments to Micro, Small, and Medium Enterprises (MSMEs). Asset and liability reporting The limit for reporting assets and liabilities under the AL Schedule has been raised from Rs 5 million to Rs 10 million. Although this offers some relief, it is still a good idea to keep detailed records of your assets, debts, and any changes during the year. This helps you stay organised and manage your finances better. STORY CONTINUES BELOW THIS AD Why salaried taxpayers should avoid filing ITRs before June 15 Tax professionals suggest that salaried individuals should wait until June 15, 2025, to file their income tax returns, even though the forms are already available. In previous years, the forms were released well ahead of time. This year, they were notified only by the end of April 2025. Also, the income tax department has not yet released the tools needed to file returns online. Tax professionals suggest that salaried individuals should wait until June 15, 2025, to file their income tax returns. (File Image) Form 16 is another key reason for the delay. It is issued by your employer and shows your salary details and tax deductions. It also lists your total income, exemptions under sections like 80C and 80D, and any other deductions. Employers issue Form 16 by June 15 every year. That's why salaried taxpayers are advised to wait until then before filing their returns.
Economic Times
20-05-2025
- Business
- Economic Times
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 Budget 2025 amended the rules for filing ITR-U. The new filing rules are effective from April 1, 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 2025Tarun Kumar Madaan, Practising Chartered Accountant, says, "The revised ITR-U is a progressive step by the CBDT to promote voluntary tax compliance, enabling taxpayers to update their income for up to four years (48 months) from the end of the relevant assessment year. The Finance Act, 2025, has amended Section 139(8A) to extend the time limit for filing an updated return from 24 months to 48 months, effective from 01-04-2025. Accordingly, in the financial year 2025–26, a taxpayer can file updated returns for Assessment Years 2021–22 to 2024–25."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. ITR-U cannot be filed if it leads to reduced income or a claim for an income tax refund. The income tax rules specify that ITR-U can be filed after the end of the relevant assessment year. The financial year 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 the 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. Madaan says, "The normal deadline for submitting an original Income Tax Return (ITR) for non-audit cases is 31 July of the relevant assessment year. If this deadline is missed, taxpayers can still file a belated return until 31 December of the same assessment year. However, once this window closes, the only remaining option is to submit an updated return (ITR-U). From January 1 onwards, updated returns become the sole available route for compliance. To facilitate this, the Income Tax Department updates its utility each year to enable the filing of ITR-U from January. Effective from 1 April 2025, the time limit to file an updated return has been extended to 48 months from the end of the relevant assessment year." He explains this with an example. For example, for the financial year 2024–25 (assessment year 2025–26), the original return can be filed until 31 July 2025; the belated return until 31 December 2025; and if both are missed, an updated return can be filed anytime from 1 January 2026 to 31 March 2030. However, this extended window is subject to conditions and restrictions under the Income Tax Act. Filing an updated return is not permitted in certain scenarios, such as when the return reflects a total income as a loss, resulting in a reduced tax liability, or leads to an increased refund, etc." 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. A penalty applies to filing an updated return using ITR-U, depending on how quickly the ITR is filed. Madaan says, "This extended window allows taxpayers to rectify past omissions, supporting the government's objective of improved compliance without prolonged litigation. The additional tax payable on updated returns has also been revised, with rates of 25%, 50%, 60%, and 70% applicable in the first, second, third, and fourth years, respectively." 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 once filed must be verified as well.
India Today
20-05-2025
- Business
- India Today
What is ITR-U? Check who can file, penalties, and last date
The Income Tax Department has come out with a new version of the ITR-U form, used to file an updated income tax return. This update follows changes made in Budget 2025, and the new rules are in effect from April 1, you missed filing your return on time or made a mistake in your previous ITR, the ITR-U gives you another chance to set things right—this time with more time on your IS ITR-U?ITR-U stands for Income Tax Updated Return. It's a special form that allows taxpayers to correct or file their returns even after the usual deadlines have passed. Earlier, taxpayers could file an updated return within 24 months from the end of the relevant assessment year. But now, the window has been widened to 48 months. That means you now have up to 4 years to submit an updated return, if CAN FILE AN UPDATED RETURN?Anyone can file an updated return using the ITR-U form, even if they didn't file an original return earlier. It's mainly meant for those who forgot to file, reported incorrect income, picked the wrong income head, or applied the wrong tax you can't use ITR-U to claim a refund or show less income than before. It is meant for disclosing more income or correcting past errors and not for reducing your tax CAN YOU FILE ITR-U?advertisementYou can file ITR-U only after the assessment year ends. For example:If you're filing for the financial year 2024–25 (assessment year 2025–26), the normal return filing deadline is July 31, 2025. If you miss this, you can still file a belated return by December 31, if you miss that too, you can file an updated return (using ITR-U) starting April 1, 2026, after the assessment year ends on March 31, have up to 31 March 2030 (48 months) to file FOR FILING ITR-U LATEIf you miss the regular deadline and file an updated return later, you'll have to pay a penalty, depending upon how late you file your per income tax rules, if you file your updated return within 12 months after the assessment year ends, you'll be charged 25% extra on your total tax and interest. This extra charge rises to 50% if filed between 12 and 24 months, 60% between 24 and 36 months, and goes up to 70% if you file between 36 and 48 filing ITR-U, the taxpayer must choose the appropriate filing period from the drop-down menu. After submission, the updated return also needs to be verified, just like your regular return.
Time of India
20-05-2025
- Business
- Time of India
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. Live Events 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.
