ITR-U Updated Return: How to File & Key Changes for 2025

What is an ITR-U or Updated Return?

ITR U or Updated Income Tax Return form is a rescue for those who have not filed their ITR or missed or incorrectly reported income in previous returns. ITR-U is a form that allows taxpayers to correct errors or omissions on their ITRs up to four years (as announced in Budget 2025) from the end of the relevant assessment year to update their return. These four years are calculated from the end of the relevant assessment year.

For instance, if you have missed filing ITR for AY 2022-23 (FY 2021-22), the last date to file an updated return is 31st March 2027. Missing this last chance can lead to legal consequences. File ITR-U.

Regardless of whether the taxpayer has filed an original, belated, or revised ITR or has completely missed filing the ITR in a specific financial year, he/she can file an ITR-U upto 2 years of the relevant assessment year. Please note that ITR-U filing for AY 2024-25 has started from 1st January 2025.

Please note:- It is also proposed that no updated return shall be allowed if a notice to show cause under Section 148A of the Income Tax Act has been issued after 36 months from the end of the relevant assessment year. However, if an order is passed under Section 148A(3), determining that it is not appropriate to issue a notice under Section 148, an updated return may still be filed within 48 months from the end of the relevant assessment year. This provision ensures that taxpayers have clarity and flexibility, particularly when a case is determined not to require further scrutiny under section 148.

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Who is Eligible to File Form ITR-U?

Any taxpayer can file an updated return u/s 139 (8A) whether he has furnished/not furnished an original return, revised return, or belated return in case of any omission, error, or wrong statement in his earlier return of income.

An Updated Return can be filed if:

• Return previously not filed
• Income not reported correctly
• Wrong heads of income chosen
• Reduction of carried forward loss
• Reduction of unabsorbed depreciation
• Reduction of tax credit u/s 115JB/115JC
• Wrong rate of tax

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Who is Not Eligible to File Form ITR U u/s 139 (8A)?

An Updated Return under section 139(8A) cannot be filed if:

• If an updated return is already filed
• If an updated return is the return of loss
• If an updated return reduces Income Tax Liability in the return filed earlier
• If the updated return results in an increase of Refund
• If a search has been initiated under Section 132
• If books of Accounts or any other documents are called for by the Income Tax Department under section 132A.
• If the survey has been conducted under section 133A
• If any proceeding of assessment, reassessment, re-computation, or revision is pending or completed for that relevant year
• If the Assessing Officer has information against such person under the Prevention of Money Laundering Act or Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act or Benami Property Transactions Act or Smugglers and Foreign Exchange Manipulators Act and the same has been communicated to the assessee.
• If the information for the relevant assessment year has been received under an agreement referred to in section 90 or section 90A in respect of such person and the same has been communicated to him prior to the date of furnishing of return under this subsection.
• Other Notified Persons

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ITR-U Filing Deadline: Time Limit & Due Dates

The time limit to file an updated return u/s 139 (8A) is extended to 4 years from 2 years starting April 2025 (as announced in budget 2025-26) from the end of the relevant assessment year. Hence, the updated return of FY 23-24 (AY 2024-25) can be filed till 31st March 2029.

For example,

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ITR-U Form Download

Download Form ITR-U

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ITR-U Late Filing Penalty – How Much Extra Tax Will You Pay?

Starting April 2025, the timeline for filing an Updated Income Tax Return (ITR-U) has been extended from two years to four years. Late filing of the ITR-U incurs penalties: If filed within 12 months, an additional 25% of the tax and interest is charged; within 24 months, it's 50%; within 36 months, it's 60%; and within 48 months, it's 70%. The new timeline gives taxpayers more time to stay compliant, but filing early will help avoid these extra costs.

For example:-

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How to File Form ITR-U?

As per the Income tax rules, the updated return (ITR-U) has to be furnished along with an updated version of the applicable ITR form (ITR 1 – 7).

ITR-U seeks the following additional details from the taxpayers:

• PAN
• Aadhaar Number
• Assessment Year
• Whether return previously filed for this assessment year? (Yes/No)
• If yes, Whether filed u/s 139(1) Others
• If applicable, enter form filed, Acknowledgement no. or Receipt No. and Date of filing the original return (DD/MM/YYYY)
• Are you eligible to file an updated return? i.e., a person is not falling in such circumstances wherein an updated return can’t be filed.
• Selecting the ITR form for filing an updated return
• Reasons for updating income. This includes reasons such as returns previously not filed, income not reported correctly, wrong heads of income chosen, etc.
• Are you filing an updated return within 12 months from the end of the relevant AY or between 12 to 24 months from the end of the relevant AY?
• Are you filing an updated return to reduce carried forward loss, unabsorbed dep., or tax credit?

Part B – Computation of updated income and tax payable (ITR-U)

• 1 (A) Head of income under which additional income is being returned as per Updated Return
• 1 (B) Total income as per last valid return (only in cases where the Income Tax Return has previously been filed)
• Total income as per Part B-TI
• The amount payable, if any (To be taken from the ―Amount payable of Part B-TT of the updated ITR)
• Amount refundable, if any (To be taken from ―Refund‖ of Part B-TTI of the updated ITR
• The amount payable on the basis of last valid return (only in applicable cases)
• 6. (i) Refund claimed as per last valid return if any
• 6. (ii) Total Refund issued as per last valid return, if any (including interest u/s 244A received
• Fee for default in furnishing return of income u/s 234F
• Regular Assessment Tax, if any
• Aggregate liability on additional income
• Additional income-tax liability on updated income [25% or 50% of (9-7)]
• Net amount payable (9+10)
• Tax paid u/s 140B
• Tax due (11-12)
• Details of payments of tax on updated return u/s 140B
• Details of payments of Advance Tax / Self-Assessment Tax / Regular Assessment Tax, credit for which has not been claimed in the earlier return (credit for the same is not to be allowed again under section 140B(2) )
  • Note: Credit for the above is not to be allowed again under section 140B(2)
• Relief u/s 89, which is not claimed in earlier return [relief for the same is not to be allowed under section 140B(2)]

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How to File ITR U Using Tax2win?

Tax2win offers two types of ITR filings:-

DIY (Self-filing)

DIY (Self-filing)- If you have a little bit of knowledge about taxes, entering some basic details will let you file the ITR within 4 minutes. Tax2win DIY platform is AI-integrated, hence it will auto-select the right ITR form for you itself and thus makes filing super-easy for you.

If you are wondering how to file an ITR with Tax2win, here are some simple steps you need to follow -

Step 1: Either sign in to the tax2win website using your existing credentials or sign up to the portal and create an account. You can do self-filing only in the case of income from salary, business, and capital gains.

Step 2: After logging in, a table consisting of all the possible sources of income opens. You need to select the income sources that you have. Based on your sources of income, Tax2win’s DIY ITR filing system selects the applicable ITR form automatically.

Step 3. You need to upload Form 16. In case you don’t have Form 16, you can simply skip the option and proceed further.

Step 4. Select the F.Y. for which you want to file the ITR and enter the PAN Details and DOB. (If you don’t have a registered account with the Income Tax Department, you will receive an OTP and a new account will be created.). You can also choose if you want our DIY software to fetch your personal details and get data pre-filled.

Step 5: Enter a few basic details in the next step. Some of it is pre-filled from the Income Tax Department’s database. Remember to cross-check the information available. As shown in the image given below, you have to enter your personal details like name, email ID, date of birth, father’s name, gender, etc.

Step 6: In the next step, you have to provide your address details and employer category. You can refer to the image below to understand this better.

Step 7. In the next step, you have to fill in your employment details. The standard deduction is applied automatically in the case of salaried employees. As shown in the image below, you have to enter your gross salary/CTC, exempted allowances like HRA, LTA, gratuity, net salary, and standard deduction and professional tax under section 16. Note that if you have uploaded Form 16, your employment data will be pre-filled in the ITR Form. All you have to do is verify the information and proceed to file ITR.

Step 8: Enter the details of the investment made during the year to calculate the applicable deductions. You have to enter details of investments in PPF, LIC, PF, housing loan, FDR, NSC, tuition fees, premiums paid to the annuity, and other 80C deductions. Also, you can claim deductions like 80D, 80CCD (1B), 80G, etc.

Step 9: In this step, you are required to enter your bank details. Enter your IFSC code, name of the bank, account number, and Aadhaar details. As per government law, it is mandatory to show all the bank details. You can select one account as the primary account. Remember, you will get a tax refund in your primary bank account.

Step 10: If you have your Form 26AS, simply upload it; otherwise, enter the details manually. Enter your salary details, previously paid taxes like advance tax/self-assessment tax, tax paid on updated return, TDS paid on income except salary, TDS on rental income, and TCS.

Step 11: Select the return filing type as ITR-U. If you have not filed your ITR for this year, select “not filed.” If you have already filed your ITR for this year, select “under section 139(1) and fill in the details of the ITR filed and click on continue.

Step 12: Based on the information given by you in the previous sections, the software automatically computes your tax liability using both the old and the new regime. You can compare both regimes and select the one that is more beneficial for you.

Step 13: Now, you can see your total tax due along with an option to pay your income tax online through the income tax portal. You can also pay your taxes offline using the income tax challan method. Click on continue.

Step 14: Now, you are ready to file ITR-U. You can either download the JSON file and upload it to the Income Tax Department or get an eCA to file your ITR-U, if you have any doubts.

File ITR Now

The second way through which you can file ITR on Tax2win is:-

Expert-Assisted ITR Filing

Step 1. Click on Hire eCA Now.

Step 2. Select the relevant options from the below steps.

Step 3. After selecting all relevant sources of income details, click on ‘hire now’ and hire a professional CA for your help.

Book Your eCA Now

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How to Verify ITR-U?

ITR-U can be verified through -

• For Non Tax-Audit Cases:
  • Aadhaar OTP
  • An Electronic Verification Code (EVC) is given for tax audit cases.
  • Digital Signature Certificate (DSC) in non-tax audit cases.
• For Tax Audit Cases:
  • Digital Signature Certificate (DSC)

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How to Calculate Tax Payable for an Updated Return (ITR-U)?

When filing an updated return (ITR-U), the tax payable includes:

• Tax due on additional income
• Interest for late payment
• Late-filing fee (if applicable)
• Additional tax for updating the return

Formula for ITR-U Tax Calculation:
ITR-U = Tax Payable + Interest + Late-filing Fees + Additional Tax

Net Tax Liability Formula:
Net Tax Liability = Total Income Tax Liability – (TDS + TCS + Advance Tax + Tax Relief)

Late Filing Fee (U/s 234F):

• ₹1,000 if taxable income ≤ ₹5 lakh
• ₹5,000 if taxable income > ₹5 lakh
• Not applicable if revising an already filed ITR

Breakdown of Total Income Tax Liability:

• Tax Payable: Tax on additional income reported in ITR-U (Part B-TTI)
• Interest: Charged under Sections 234A, 234B, or 234C (Part B-TTI)
• Late Fee: Applicable under Section 234F (if relevant)
• Additional Tax: A penalty of 25% to 70% depending on the filing timeline

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ITR-U for Missed Returns: What Happens If You Don’t File?

CBDT offers you the third chance to be tax compliant by filing updated return. In case of you miss filing the ITR, you will be considered non-tax compliant and hence you might have to face some legal consequences like income tax notice, penalties, interest and others. If your income tax liability is more than Rs. 25,000 and you fail to file the ITR, you shall be punishable with rigorous imprisonment of minimum 6 months upto 7 years and with a fine. In any other case( i.e. tax liability is less than Rs.25,000) you shall be punishable with rigorous imprisonment of minimum 3 months upto 2 years and with a fine.

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Key Points About ITR-U: Updated Return

1. Purpose
   ITR-U enables taxpayers to update previously filed returns to include any missed income or deductions, fostering compliance and helping avoid penalties.
2. Eligibility Window
   Starting April 2025, the time limit for filing ITR-U is 4 years from the end of the relevant assessment year.
3. One-Time Submission
   ITR-U can be filed only once for a given assessment year. No further updates are allowed once submitted under this provision.
4. Types of Corrections
   Corrections may include adjustments to income, tax credits, or deduction errors. However, ITR-U cannot be used to claim or increase refund amounts.
5. Payment of Tax
   Any additional tax and interest must be paid before submitting the updated return to ensure accuracy and avoid discrepancies.
6. No Refund Claims Allowed
   ITR-U is not applicable for claiming refunds. It is primarily designed for reporting additional income and rectifying filing errors.

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Belated, Revised Income Tax Returns vs ITR-U - know the difference & details

• Belated Return:
  Belated return allows you to file your ITR post the due date along with a penalty amount. So, if you have missed the 31st July deadline, you can file a belated return by 31st December of the particular assessment year.
• Revised Return:
  If your original or belated return contains errors like incorrect income details or missed deductions, you can file a revised return by 31st December of the particular assessment year.
• ITR-U (Updated Return):
  ITR-U allows taxpayers to correct or update their already filed ITRs within four years from the end of the relevant assessment year. However, it cannot be used to claim refunds or forward losses.

Have trouble computing your tax liability for updated ITR filing? Contact our tax experts and get end-to-end ITR filing services, right from computation to ITR filing online. Book an online CA now!

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