ITR Filing 2025: Under the new ITR-U form applicable from 2025, taxpayers will now get the opportunity to file updated returns for 4 years. Let us know who has to file ITR-U form, how much additional tax will be levied and what major legal changes have been made in it.
ITR Filing 2025: The Central Board of Direct Taxes (CBDT) has notified the new Income Tax Updated Return Form, i.e. ITR-U. This form has been prepared based on the changes made in Budget 2025 and has come into effect from April 1, 2025.
The biggest change is that now taxpayers will get 48 months i.e. 4 years to file updated returns. Earlier this time limit was 24 months, which has been extended in the Finance Act 2025. This means that you can now file updated ITR for the financial years 2020-21, 2021-22, 2022-23 and 2023-24 as well.
You will have to pay more tax if you file late
If you file ITR-U in the first year after the due date, you will have to pay 25% extra tax on tax and interest. In the second year, it will increase to 50%. In the third year, it will be 60% and in the fourth year, it will be 70% extra tax.
What is the ITR-U deadline for each year?
| Financial Year (FY) | ITR-U Deadline |
| 2020–21 | 31 March 2026 |
| 2021–22 | 31 March 2027 |
| 2022–23 | 31 March 2028 |
| 2023–24 | 31 March 2029 |
It is also important to keep in mind the legal changes
Section 139(8A) of the Income Tax Act has also been amended. Now if a show-cause notice is issued against you under section 148A after 36 months from the end of an assessment year, you cannot file ITR-U for that year. However, if the assessing officer under section 148A(3) orders that the case is not fit for re-assessment, you can file ITR-U within 48 months.
Section 140B has also been updated to incorporate the increased tax on late filing. Also, changes have been made in Rule 12AC to fully implement the new ITR-U process.
Some conditions will remain the same as before
- Cannot claim refund through ITR-U.
- You cannot deduct the income shown in old returns.
- Loss carry forward also cannot be done through ITR-U.
- If the case for any year has already been opened by the Income Tax Department, then you cannot file ITR-U for that year.
