Income Tax Department extended the deadline for filing ITR-U, know the period for filing updated returns and penalty

Big change in ITR-U. Now update old ITR for 4 years (ITR Filing 2025). Know the new rules, penalty up to 70%, deadline and impact on taxpayers. New notification of CBDT.

ITR Filing 2025: A very big and relief news has come for those who file Income Tax Return (ITR). The Central Board of Direct Taxes (CBDT) has notified the updated Income Tax Return Form, i.e. ITR-U, with new changes. The most important thing is that now taxpayers will get twice the time than before to correct the mistakes made in their old ITR or declare forgotten income! Yes, this time limit has been increased from 24 months to 48 months (ie 4 years). These new rules have been prepared on the basis of announcements made in Budget 2025 and have also come into effect from April 1, 2025. So let’s know how this big change will affect you, what are the new slabs of penalty, and what things you have to keep in mind.

Now you can update ITR for 4 years!

This is the most important update related to ITR-U so far.

1. Huge increase in time limit:

Earlier, taxpayers were able to file ITR-U within 24 months (2 years) of the end of the respective assessment year. But after the amendment made in the Finance Act 2025, this time limit has been increased to 48 months (4 years).

2. For which years is it applicable:

This change simply means that now you can update your returns for the last four financial years as well. For example, from April 1, 2025, you will be able to file ITR-U.

Financial Year 2020-21 (AY 2021-22)
Financial Year 2021-22 (AY 2022-23)
Financial Year 2022-23 (AY 2023-24)
Financial Year 2023-24 (AY 2024-25)

What did CBDT say?

CBDT has issued a new form of revised ITR-U and has also given official information about this. In a post made on social media platform X, the board clarified that under the Finance Act 2025, the time limit for filing ITR-U has been extended to 48 months. Along with this, information about the new slab of penalty has also been given.

The longer the delay, the higher the penalty

Along with the increase in the deadline, changes have also been made in the slab of penalty for filing ITR-U late. Now it will be as follows.

1. Within the first year (after the due date):

If you file ITR-U within the first year of the due date of the respective assessment year, then you will have to pay 25% additional tax on the additional tax and interest payable.

2. In the second year:

If you file ITR-U in the second year, then this additional tax will increase to 50%.

3. In the third year:

Now under the new rule, if you file ITR-U in the third year, then you will have to pay 60% additional income tax.

4. In the fourth year:

And if you file ITR-U in the fourth year, then this penalty will be the highest, i.e. 70% additional income tax.

The meaning is clear, the sooner you correct your mistake, the lesser the penalty you will have to pay.

What is the new deadline for ITR-U for each year?

As per this extended deadline of 48 months, the deadlines for filing ITR-U for different financial years will be as follows.

Financial Year (FY) Deadline for filing ITR-U
2020–21 31 March 2026
2021–22 31 March 2027
2022–23 31 March 2028
2023–24 31 March 2029

 

Changes in sections 139(8A) and 140B

Along with the increase in this time limit, some legal provisions have also been changed.

1. Amendment in section 139(8A):

Now, if a show cause notice is issued against you under section 148A of the Income Tax Act (for re-assessment) 36 months after the end of an assessment year, you will not be able to file ITR-U for that year.

2. Big relief:

If the assessing officer under section 148A(3) orders that your case is not fit for re-assessment, you can still file ITR-U within the extended time limit of 48 months.

3. Update in section 140B:

This section has also been updated to legally incorporate the increased tax (60% and 70% slabs) levied on late filing.

4. Changes in Rule 12AC:

Necessary changes have also been made in the related rules (such as Rule 12AC) to ensure smooth implementation of this new ITR-U process.

Some old conditions will still apply

It is important to note that some of the old conditions of ITR-U will remain the same.

You cannot claim a refund or enhance your existing refund through ITR-U.

You cannot reduce the income shown in your previous return.

Losses cannot be carried forward through ITR-U.

If the Income Tax Department has already opened your case for investigation (such as scrutiny or assessment) for a particular year, you cannot file ITR-U for that year.

Which taxpayers will get the most benefit?

This increase in the deadline to file ITR-U will prove to be very beneficial for many taxpayers.

1. People who missed due to technical reasons:

People who were not able to correct their returns on time or forgot to declare any income due to any technical problems, lack of information or any other personal reason.

2. Emergency or illness:

People who were not able to fulfill their tax responsibilities on time due to any serious illness or any emergency situation.

3. Ease of voluntary compliance:

This move will promote voluntary tax compliance and give people a long chance to correct their past mistakes without any fear.

Correct mistakes in time

This unprecedented increase in the deadline to file ITR-U is certainly a big relief for taxpayers. It provides them with a wide opportunity to rectify their past financial mistakes and better comply with tax laws. However, the extended deadline also comes with increased penalties, so the advice is to correct your mistakes as soon as possible. It is in the interest of all taxpayers to understand these new rules and follow them properly.

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