Who Can and Cannot File ITR-U Under 48-Month Extension
Income Tax filing: Finance Minister Nirmala Sitharaman in budget 2025 recommends extending the time duration to provide the amended Income tax returns (ITRs) from two to four years. The same adjustment furnishes the taxpayers with more time to address the inaccuracies reveal the ignored income and comply with the tax norms.
How Much Tax Do You Owe? Calculate Now
Points to Cite After Budget 2025
- The time limit extension has been proposed by the government to file an updated return from 24 months to 48 months from the end of the relevant assessment year.
- Section 139(8A) of the Act related to the submission of the updated returns. At present the updated returns could be provided within 24 months from the finish of the pertinent assessment year. The same provisions incentivize voluntary compliance by permitting the payment of an additional income tax of 25% of the total tax and interest due for updated returns submitted within 12 months from the finish of the pertinent assessment year.
- The additional income tax surges to 50% of the total tax and interest amount for updated returns furnished after 12 months but within 24 months from the end of the pertinent assessment year.
- As per the Budget Memorandum, "To further nudge voluntary compliance, it is proposed to amend the said subsection to extend the time-limit to file the updated return from existing 24 months to 48 months from the end of the relevant assessment year. The rate of additional income tax payable for updated returns filed after the expiry of 24 months and up to 36 months from the end of the relevant assessment year shall be 60% of the aggregate of tax and interest payable. The additional income tax subjected to be paid for updated returns filed after expiry of 36 months and up to 48 months from the finish of the appropriate assessment year shall be 70% of the aggregate of tax and interest subjected to be filed."
As per Section 139(8A) of the Income Tax Act, 1961 (hereinafter referred to as ‘IT Act’), every taxpayer whether or not they have filed any original return or belated return or amended return shall be qualified to file an updated income return. These updated income returns could be submitted at any time post-finish of the pertinent assessment year though within 24 months from the finish of the pertinent assessment year in the Form ITR-U. For example, a taxpayer concerned with the fiscal year 2023-24, are able to submit an updated return on or before 31st March 2027.
What Does the Same Direct for the Taxpayers
Now the Finance Bill 2025 has proposed to extend the duration to file the updated tax return. As per which the updated return could be submitted 48 months from the finish of the pertinent assessment year, within the additional tax payment.
The tax varies from 25% to 70% of the tax and the interest liable to get paid consequence in overall heavy tax concern. While the extended duration shall motivate compliance it shall have been effective in maintaining the additional tax at 25% which is enough as a deterrent.
The taxpayers filing ITR-U are mandated to file an additional tax based on the timing of the updated return filing. The additional tax rate varies on the number of months post the finish of the pertinent assessment year-
25% of the tax plus the interest is liable to be filed if ITR-U is filed within 12 months from the end of the relevant assessment year.
If you submit your tax return within 2 years, you'll need to pay half of the taxes owed, plus any interest. If you wait until 3 years, you'll owe 60% of the taxes plus interest. If it takes up to 4 years, then you'll need to pay 70% of the taxes plus interest.
| If the Updated Return is Filed | Additional Tax Liability |
| Post expiry of the time available for Revised return and Belated return and before completion of 12 months from the end of the relevant assessment year | 25% of the aggregate tax and interest payable |
| Post expiry of 12 months from the end of the relevant assessment year but before completion of the period of 24 months from the end of the relevant assessment year | 50% of the aggregate of tax and interest payable |
| Post expiry of 24 months from the end of the relevant assessment year but before completion of the period of 36 months from the end of the relevant assessment year | 60% of the aggregate tax and interest payable on the additional income disclosed in the updated ITR |
| Post expiry of 36 months from the end of the relevant assessment year but before completion of the period of 48 months from the end of the relevant assessment year | 70% of the aggregate of tax and interest payable on additional income disclosed in the updated ITR |
For Filing Your ITR-U Comply with The Below-Mentioned Steps
To update your tax return, follow these simple steps:
- Download the ITR-U form from the Income Tax Department’s website.
- Go to the e-filing portal and select "Updated Return (ITR-U)".
- Fill in all the necessary information, including any extra income you've earned and any additional tax you might need to pay.
- Make sure to calculate and pay any extra tax before you submit the form.
- Finally, submit your form and confirm your return using an Aadhaar OTP, net banking, or a Digital Signature Certificate (DSC).
By following these steps, you can ensure that your tax information is updated correctly.
Who is Not Able to File ITR-U:
Taxpayers are not able to submit ITR-U in the below-mentioned cases:
- Have already submitted a revised return.
- Filing a return with zero income or a loss.
- Desiring to revise the refund amount.
- The updated return indicates a decrease in tax liability.
- Subject to investigation or survey under Sections 132, 133A, or 132A.
- Experiencing tax assessment or reassessment.
- No additional tax is owed (offset by TDS or losses).