Summary:
The CBDT has extended the time limit for filing Updated Returns (ITR-U) from 36 to 48 months. This allows taxpayers to voluntarily correct past ITRs for up to 4 previous years. Learn the latest compliance rules, tax implications, and how to file safely under the amended law.
Introduction
ITR-U filing now allowed for 4 years — a major relief for taxpayers who missed declaring income earlier. As per CBDT Notification No. 49/2025 dated 19.05.2025, the updated return timeline under Section 139(8A) is now extended from 36 months to 48 months, effective from AY 2025–26.
What is ITR-U?
ITR-U (Updated Return) allows taxpayers to voluntarily rectify omissions or errors in previously filed ITRs by paying additional tax.
- Introduced under Section 139(8A) by the Finance Act, 2022
- Additional tax is mandatory
New Timeline: File ITR-U for 4 Previous Years
| Particulars | Old Rule | New Rule (2025) |
|---|---|---|
| Maximum time to file ITR-U | 36 months from end of AY | 48 months from end of AY |
| Applicable from | AY 2022–23 onwards | AY 2025–26 onwards |
| Legal Basis | Sec 139(8A) | Finance Act 2025 + Notification 49/2025 |
| Rule Amended | Rule 12AC | Updated via Notification |
Additional Tax Payable under ITR-U
| Year of Filing ITR-U | Additional Tax on Due Tax |
|---|---|
| 1st year (within 12 months) | 25% |
| 2nd year (within 24 months) | 50% |
| 3rd year (within 36 months) | 60% (new) |
| 4th year (within 48 months) | 70% (new) |
As per amended Section 140B, effective from 2025.
Restrictions on Filing ITR-U
- Notice under Section 148A issued?
→ You cannot file ITR-U if it’s issued after 36 months. - However, if the 148A(3) order concludes no case,
→ ITR-U filing is permitted up to 48 months.
Practical Example
Let’s say you missed reporting ₹5 lakh income in AY 2021–22.
- Under old rules: You couldn’t file ITR-U now (36 months passed).
- Now (under new rule): You can still file it till March 2026 with 70% extra tax.
Legal References
- Notification No. 49/2025, dated 19.05.2025
→ Read on eGazette - Section 139(8A) – Updated Return provisions
- Section 140B – Additional Tax on Updated Return
- Rule 12AC – Prescribed ITR-U Form
Expert Insight
“Extending ITR-U to 4 years offers much-needed relief. But with up to 70% additional tax, it’s a wake-up call to stay compliant proactively.”
— Ramesh Narayanan, Tax Advisor & Compliance Expert
Step-by-Step: How to File ITR-U
- Login to Income Tax Portal
https://www.incometax.gov.in - Select ‘ITR-U’ Form under e-File section
- Choose relevant AY and reason for update
- Compute total tax + additional % as per year
- Pay challan under code 300 (self-assessment + extra tax)
- File and verify via Aadhaar OTP or DSC
FAQ Section
Q1. Can I file ITR-U for AY 2019–20 now?
A: No, the 48-month limit is from end of relevant AY, so that window has closed.
Q2. Is refund allowed in ITR-U?
A: No. ITR-U cannot be filed to claim a refund or declare loss.
Q3. Is ITR-U available for all ITR forms?
A: Mostly yes — ITR-1 to ITR-7, but only if conditions are met.
With ITR-U filing now allowed for 4 years, you get a final chance to set your records straight. But the cost of delay rises steeply. Avoid penalties and scrutiny — consult Efiletax for seamless ITR-U filing support.