• Source:JND
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Income Tax Return Filing 2025: A revised version of the ITR-U form was recently notified by the Income Tax Department, offering much-needed relief to taxpayers who were either unable to file their income tax returns by the deadline or whose returns were left incomplete. The Central Board of Direct Taxes (CBDT) released an official note introducing this revised form with the intention of giving taxpayers one more chance to ensure compliance and make corrections to their tax returns, thereby avoiding fines or legal action.

The ITR-U Form: What is it?

If a taxpayer missed the initial deadline, the extended deadline for late returns, or they need to correct mistakes or omissions in previously filed returns, they can file updated returns using the ITR-U (Updated Income Tax Return) form. In the past, taxpayers had 24 months from the end of the applicable assessment year to file amended returns. The new provisions, however, have increased this deadline to 48 months, allowing taxpayers an additional two years to correct their records. The updated regulations will take effect on April 1, 2025.

Important Points of the CBDT Note

In a post on the social media platform X, the CBDT announced that the deadline for filing ITR-U has been extended to 48 months in accordance with the Finance Act 2025. However, there will be a penalty of an extra 60% of the tax owed for taxpayers who file amended returns in the third year. The penalty will rise to 70% if the return is submitted in the fourth year.

Who Will Gain from This Form?

It is anticipated that taxpayers who were unable to finish their filings because of technical difficulties, a lack of information, or personal obstacles like emergencies or health concerns will benefit from the extended window for filing amended returns. The goal of this action is to reduce the burden of compliance and give legitimate taxpayers another opportunity to update their records without fear of severe repercussions.