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How to file updated income tax returns after budget, learn full process here

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Income tax return

Photo: File Income tax return

Budget 2025 The deadline for filing updated income tax returns (ITR-U) for taxpayers has been extended from two years to 4 years. This will give taxpayers more time to rectify mistakes, declare a missed income and comply with tax laws. Let us know how a common taxpayer will benefit from this initiative of the government. If you also have to file your updated return, then how will you be able to do it. We are trying to answer all your questions.

What is updated ITR (ITR-U)?

Updated ITR-U is a form that allows taxpayers to update their income tax returns. If they have missed the original or delayed returns or need to fix the errors already filed, they can file their returns using this form. However, taxpayers cannot use ITR-U to claim refunds, reduce tax liability or increase deficit.

Who can enter ITR -U?

Any taxpayer who has made any mistake in any of the following returns or has left income details can file updated returns.

When to enter ITR-U?

Taxpayers will have to pay additional tax while filing ITR-U. The rate depends on how late the updated returns have been filed.

  • Enter ITR-U within additional tax payable

  • 25% of 12 months from the end of the concerned assessment eer (Ay) + 25% of interest

  • 24 months from the end of the concerned Ay + 50% of interest

  • 36 months from the end of the concerned Ay + 60% of interest

  • 70% of interest 48 months from the end of the concerned Ay

Who cannot file ITR-U?

  • The update returns have already been filed.

  • To file zero returns or deficit returns.

  • Want to increase the refund amount.

  • Update returns result in low tax liability.

  • Search or survey has been initiated under sections 132, 133A, or 132A.

  • The tax fixation/revaluation is pending or complete.

  • No additional tax is outstanding (adjusted with TDS/loss).

How to file updated returns?

  • Download the ITR-U form from the Income Tax Department website.

  • Log in on the e-filing portal and choose “ITR-U)”.

  • Enter the required details including additional income and tax payable.

  • Calculate and pay the additional tax before depositing.

  • Submit the form and verify the returns using Aadhaar OTP, Net Banking or DSC.

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