ITR-U allow taxpayers to update their return even after the due date
1. What is ITR-U?
ITR-U is an Updated Income Tax Return that allows taxpayers to rectify omissions, correct errors, or report additional income for the last two assessment years after the original filing due date.
For AY 2025-26, ITR-U can be filed for:
- AY 2023-24 (FY 2022-23)
- AY 2024-25 (FY 2023-24)
2. Who Can File ITR-U?
Any taxpayer can file ITR-U if:
✅ They missed filing the original or belated return
✅ They reported lower income than actual earnings
✅ They claimed excessive deductions or exemptions
✅ They paid incorrect tax calculations
🔴 Who Cannot File ITR-U?
❌ If it results in a refund increase
❌ If it reduces the tax liability
❌ If it involves search & seizure cases under Section 132
❌ If a prosecution has been initiated for the relevant year
3. Time Limit to File ITR-U
| Financial Year | Assessment Year | ITR-U Last Date |
|---|---|---|
| 2022-23 | 2023-24 | 31st March 2026 |
| 2023-24 | 2024-25 | 31st March 2027 |
📌 ITR-U can be filed within 24 months from the end of the relevant assessment year.
4. Additional Tax Payable While Filing ITR-U
A penalty, called Additional Tax, is applicable based on the delay period:
| Time of Filing ITR-U | Penalty (on additional income) |
|---|---|
| Within 12 months | 25% of additional tax payable |
| Between 12-24 months | 50% of additional tax payable |