Correct Errors In Old Tax Returns, Know - Who Can File ITR-U Form & By When | All You Need to Know

The ITR-U form helps taxpayers correct old income tax returns. It allows updates within 48 months but includes strict conditions and extra tax penalties for late filing. Not everyone can apply.

G R Mukesh Updated: Friday, August 22, 2025, 01:45 PM IST
New Income Tax Rule Offers Relief with Penalty, But Not Everyone Is Eligible. |

New Income Tax Rule Offers Relief with Penalty, But Not Everyone Is Eligible. |

The Income Tax Return - Updated (ITR-U) is a new form introduced by the Income Tax Department under Section 139(8A) of the Income Tax Act. It was launched via the Finance Act 2022 and later updated in Finance Act 2025.

This form allows taxpayers to correct mistakes or omissions in past tax returns. Whether you missed disclosing an income, filed late, or made an error, ITR-U lets you update it without waiting for a notice from the department.

Why Was ITR-U Introduced?

The main goal of ITR-U is to promote voluntary tax compliance. It gives people a chance to fix errors without worrying about strict legal actions—but only if done within time and with extra tax payment.

Who Can File ITR-U?

You can file ITR-U if:

- You missed filing your return for a financial year.

- You want to correct any wrong or missing income in an earlier return.

Who Cannot File ITR-U?

You cannot file ITR-U if:

- You already updated the return once.

- You’re declaring zero income or a loss.

- You want to claim or increase a refund.

- Your updated return lowers your tax.

- You were part of an income tax search or raid.

- Your case is under investigation or reassessment.

Time Limit for Filing ITR-U

You have 48 months (4 years) from the end of the relevant Assessment Year (AY) to file ITR-U.

Example:

- For AY 2025–26, last date is March 31, 2030.

- For AY 2024–25, it’s March 31, 2029.

Extra Tax and Penalty

If you file late, you’ll pay extra tax:

- 25 percent of extra tax due if filed within 12 months

- 50 percent if within 24 months

- 70 percent if between 36 to 48 months

Published on: Friday, August 22, 2025, 01:45 PM IST

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