- By Shreyansh Mangla
- Fri, 01 Aug 2025 06:52 PM (IST)
- Source:JND
ITR-U Filing 2025: The Income Tax Department on Thursday launched the online facility for filing ITR-U (Income Tax Return – Updated), offering taxpayers an extended window to correct errors or omissions in previously filed returns. The form, introduced in the Union Budget 2022 and effective from Financial Year 2021–22 (Assessment Year 2022–23), can now be used for AY 2021–22 and AY 2022–23.
What Is ITR-U?
The ITR-U enables individuals and entities to file an updated return within an extended 48-month window from the end of the relevant assessment year. For instance, for AY 2023–24, the deadline to file ITR-U is 31 March 2028. This extension applies to Assessment Years ending 31 March 2026 and onwards, as per the Finance Act 2025.
Who Can File ITR-U?
Eligible taxpayers include individuals and Hindu Undivided Families (HUFs) who filed or should have filed ITR-1 or ITR-2 and need to correct disclosures related to income, tax rates, depreciation claims, or tax credits. However, ITR-U cannot be filed if the tax department has already initiated search, survey, or reassessment proceedings for the same year.
- ITR-1 is for resident individuals with income up to Rs 50 lakh from salary, one house property, and other sources (excluding lottery and racehorses), and up to Rs 5,000 in agricultural income.
- ITR-2 is for individuals and HUFs not having business income but earning through salary, more than one house property, capital gains, foreign income, or being a company director or holder of unlisted equity shares.
When You Cannot File ITR-U?
The updated return form cannot be used to:
- Claim or increase a refund
- File a nil or loss return
- Reduce tax liability
- File again for the same AY
- Avoid paying any additional tax due
Additionally, if your entire tax liability is already covered through TDS, TCS, or carried forward losses, and no further tax is due, you are ineligible to use ITR-U.
Additional Tax Payable
Filing ITR-U involves an extra tax payment on top of normal tax and interest, depending on when it is filed:
- 25% of the due tax and interest if filed within 12 months
- 50% if filed between 12–24 months
- 60% between 24–36 months
- 70% between 36–48 months
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Why ITR-U Matters?
ITR-U promotes voluntary compliance by giving taxpayers a chance to correct mistakes without legal complications. Experts recommend consulting a tax advisor due to the complexities involved. The form is available via the income tax e-filing portal under the "Updated Returns" section.