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Time of India
3 days ago
- Business
- Time of India
ITR e-filing: CBDT enables ITR-U filing via ITR-3 and ITR-4 forms; here's who needs to file it and why
What is an Updated Income Tax Return (ITR-U)? Academy Empower your mind, elevate your skills Who needs to file ITR 3 form? Who needs to file ITR-4 form (Sugam)? Who needs to file ITR-U? Who cannot file ITR-U? Is a Nil return or a return of a loss or Has the effect of decreasing the total tax liability determined on the basis of return furnished for the relevant AY or Results in refund or increases the refund due on the basis of return furnished for the relevant assessment year. A taxpayer cannot file an updated return in case of search and seizure or case where any prosecution proceedings have been initiated. Last date to file ITR-U Penalty applicable on filing ITR-U The Central Board of Direct Taxes (CBDT) has enabled updated income tax return (ITR-U) filing via ITR-3 and ITR-4 forms on the e-filing ITR portal for AY 2021-22 and 2022-23. This ITR-U return via ITR-3 and ITR-4 forms can also be filed using the respective ITR form's offline Excel per Finance Act, 2025, taxpayers now have up to 48 months from the end of the applicable assessment year to file an updated return under Section 139 (8A) of the Income Tax Act, according to the Union Budget 2025. Even if they did not file a return or filed it incorrectly, the extended period will enable people to repair mistakes or omissions in their prior filings by paying more an objective to reduce litigation, ITR-U provides an opportunity for voluntary compliance to taxpayers to rectify errors/ Budget 2025,he deadline to file updated income tax return (ITR-U)_ had been extended from 24 months to 48 months from the end of the relevant assessment year (AY).Also read: CBDT notifies ITR-U: Know who can file updated return, penalty, last date to file Chartered Accountant Abhishek Soni, CEO & Co-founder of Tax2win, says, ITR-U has to be filed in the same form that a taxpayer is otherwise eligible Soni further adds, 'ITR 3 can be filed by individuals and HUFs having income from business or profession. Those having salary/pension, house property, capital gains, or other income along with business/professional income.'Soni says 'Resident individuals, HUFs, and firms (other than LLPs) with total income up to Rs 50 having income from presumptive business/profession u/s 44AD, 44ADA, or 44AE. Can also include salary/pension, one house property, and other income (like interest) within the Rs 50 lakh limit.' Income tax rules specify the conditions under which a taxpayer can file the updated return. A taxpayer can file ITR-U even if they have filed an ITR in the relevant assessment year. If the ITR has been filed in the relevant assessment year, the taxpayer is required to provide the acknowledgement number of the original updated return can be filed by any person within 48 months from the end of the relevant assessment year, whether or not an original, revised or belated return has been furnished under section 139 for such return cannot be filed if such return: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 has been filed.
Time of India
30-07-2025
- Business
- Time of India
Income Tax Department enables updated return filing for these two years: Check details
What is an Updated Income Tax Return (ITR-U)? Academy Empower your mind, elevate your skills Who can file ITR-U? If the return was previously not filed If return was filed but Income was not reported correctly Wrong heads of income was chosen To reduce unabsorbed depreciation To reduce tax credit Tax of tax not correct Who cannot file ITR-U? Is a Nil return or a return of a loss or Has the effect of decreasing the total tax liability determined on the basis of return furnished for the relevant A.Y or Results in refund or increases the refund due on the basis of return furnished for the relevant assessment year. Taxpayer cannot file an updated return in case of search and seizure or case where any prosecution proceedings have been initiated. Can I file an ITR-U under the new/ old tax regime? How many times can I file ITR U in the same AY? Last date to file ITR-U Penalty applicable on filing ITR-U The Income Tax Department has now enabled utilities for filing updated income tax returns ( ITR-U ) in ITR-1 and ITR-2 for the assessment years (AY) 2021-22 and 2022-23 as per Finance Act, Budget 2025 announced that taxpayers will now have up to 48 months from the end of the relevant assessment year to file an updated return under Section 139 (8A) of the Income Tax Act . This extended time allows individuals to fix errors or omissions in their previous filings by paying more taxes, even if they did not submit a return or filed it incorrectly. However, there are some limits and restrictions on who can file an updated income tax return and provides an opportunity for voluntary compliance to taxpayers in order to rectify errors/ omissions with an objective to reduce deadline for taxpayers to file updated income tax returns has been extended from 24 months to 48 months from the end of the relevant assessment year (A.Y).Updated returns can be filed by any person within 48 months from the end of the relevant assessment year, whether or not an original, revised or belated return has been furnished under section 139 for such A.Y. It can be filed in following cases:Updated return cannot be filed if such return:A taxpayer has to choose for the tax regime within the due date prescribed as per section 139 (1) of the Income Tax Act. Once chosen within the due date the taxpayer cannot change the regime cannot be e- filing portal will not allow you to file ITR u/s139(8A)more than one 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.
News18
20-05-2025
- Business
- News18
New ITR-U Rules 2025: Tax Dept Extends Filing Deadline To 48 Months, Check Key Changes
Last Updated: ITR Filing: ITR-U allows you to correct errors and omissions in your previous ITRs. Check key updates in ITR-U. Income Tax FY 2024-25: The Income Tax Department (ITD) has notified the ITR-U (Updated Income Tax Return) form with key updates, including extension of time limit, new additional tax rates for delayed ITR-U filings, changes in section 139 (8A), and many more. CBDT released the notification of ITR-U on May 19. ITR-U allows you to correct errors and omissions in your previous ITRs. In case you miss to file ITR in previous AY, you can use ITR-U to complete your tax responsibilities. 1. Extended Time Limit: The filing deadline has been extended to 48 months (4 years), as per the Finance Act, 2025. 2. Additional Tax Payable: – Filing in the 3rd year will incur an additional income tax of 60%. – Filing in the 4th year will incur an additional income tax of 70%. 3. Amendment to Section 139(8A): No ITR-U can be filed if a notice under Section 148A (show-cause notice) is issued after 36 months from the end of the relevant assessment year. However, if an order under Section 148A(3) later states that it is not a valid case for notice under Section 148, then ITR-U can still be filed within 48 months from the end of the relevant assessment year. 4. Amendment to Section 140B: This section has been updated to prescribe the additional income tax payable for the extended timelines. 5. Amendment to Rule 12AC: This rule has been updated accordingly to reflect these changes. ITR Filing Season 2025 The income tax department has now notified all seven income tax return (ITR) forms for the assessment year 2025-26. Though ITR filing is yet to be enabled, it is necessary to know which tax return form should you choose to file income tax return. Most individual taxpayers will have to file their income tax returns by July 31, 2025, while different categories of assessees, including companies and those requiring audits, have different deadlines. First Published: May 20, 2025, 11:34 IST
