Income Tax Returns: What is ITR-U, who can file it and who cannot? From process to penalty – here’s all you need to know

Central Board of Direct Taxes (CBDT) has notified ITR-U (updated), a form that allows taxpayers to rectify errors or omissions and file your previous Income Tax Return. ITR (U) was introduced under Section 139(8A) of the Income Tax Act.

Here is everything you need to know about ITR-U.

What is ITR-U?

To encourage voluntary compliance, the Government of India introduced the ITR-U in the Finance Act 2022 and amended the guidelines via Finance Act 2025.

With ITR-U, taxpayers can correct tax filing errors, add omitted income, or rectify misreporting. The provisions of ITR-U fall under section 139(8A) of the Income Tax Act.

Unlike the traditional deadline of July 31, the updated return’s deadline is March 31. For instance, March 31 2025 was the last date to file updated returns for FY 2021-2022.

You can file the ITR-U if you have missed the due date of original return, revised return and belated returns.

Who can and cannot file ITR-U?

Any person who has made a mistake or omitted certain income details in their original income tax returnrevised return or belated return is eligible to file ITR-U.

However, not everyone is eligible to file ITR-U. These includes when a taxpayer:

What is the time limit to file ITR-U?

The time limit for filing ITR-U is 48 months from the end of the applicable assessment year. This means that for the AY 2025-26, the last date to file ITR-U is 31st March 2030.

Similarly, for AY 2024-25, the last date to file ITR-U is 31st March 2029.

Do you need to pay additional taxes?

It must be noted that an additional tax needs to be paid when you file ITR-U.

For ITRs filed within 12 months from the end of the relevant AY, the additional tax is 25%, for 24 months it is 50%, for 36 months it is 70% and for 48 months it is 70%.

Thus, one must remember that an updated return is meant to pay a tax which you missed paying while filing the actual return, and not to claim an income tax refund.