There is good news for taxpayers who have planned to file updated Income Tax Return (ITR-U). The Income Tax Department has opened the window to file updated returns of assessment year 2020-21 and 2022-23. Taxpayers who had forgotten to tell any of their incomes in income tax returns or had made a mistake in giving information, they can update their returns.
Updated returns filing started in 2022
The Income Tax Department has told about this on social media platform x. To file an ITR -U, taxpayers have to go to the e-filing portal (Inometax.gov.in). The updated returns started in 2022. The facility of updated returns was introduced for taxpayers who missed the income tax return for some reason, gave any wrong information in ITR or forgot to tell about any of their incomes in the return.
File may be done within 48 months of the end of assessment year
The updated returns have been mentioned in Section 139 (8A) of the Income Tax Act, 1961. It said that taxpayers can file updated income tax returns within 48 months of the end of the assessment year. Earlier this period was 24 months. It was increased to 48 months in Union Budget 2025.
Benefits of updated return facility
Sometimes some taxpayers are unable to file returns due to some compulsions. However, there is a facility to file a billowed return for taxpayers who do not file returns to the deadline. However, there are also some taxpayers that also miss on filing billets. Bilated returns can be filed by 31 July of the respective assessment year. If a taxpayer neither filed a return nor filed a billowed return, he can file an updated return i.e. ITR-U.
Who cannot file itr-u
There are some situations in which taxpayers are not allowed to file updated returns. If fileing updated returns, taxpayer’s tax liability decreases or has a refund claim, then it cannot file updated returns. If there is an income tax search against any taxpayers, action of Caesar or there is a case against him in the court, then he cannot file an updated return.
More tax will have to be paid to file ITR-U
Taxpayers have to pay additional tax to file updated returns. If he files updated returns within 12 months of the end of the respective assessment year, then he will have to pay an additional 12 percent tax. If the taxpayer files ITR-U within 12 to 24 months, then it will have to pay 50 percent additional tax. 60 percent tax will have to be paid for filing within 24 to 36 months and 70 percent tax on filing within 36-48 months.