The Central Board of Direct Taxes (CBDT) has officially notified a revised version of the Updated Income Tax Return form (ITR-U), giving taxpayers a significantly longer window to correct their tax filings. Under the updated rules, individuals will now have up to 4 years (48 months) to file an updated return, doubling the previous limit of 24 months.
This change comes into effect with the amendments announced in the Union Budget 2025, which became applicable from April 1, 2025.
ITR-U stands for Updated Income Tax Return. This return is intended for taxpayers who:
Missed filing their ITR within the original deadline
Made errors or omissions in their previously filed return
Failed to report certain income accurately
Filed the return under the wrong head or tax regime
With ITR-U, the government offers an extended opportunity to voluntarily rectify such mistakes without waiting for a tax notice.
Previously, taxpayers could file an updated return within 2 years (24 months) from the end of the relevant assessment year. However, the revised rules now allow 4 years (48 months), offering more flexibility for those who need to amend or file missed returns.
If a taxpayer needs to file or correct a return for FY 2024–25 (Assessment Year 2025–26), the original deadline is July 31, 2025.
With the new ITR-U rules, they can now update this return until March 31, 2030.
The ITR-U form is meant for any individual or entity who needs to update a previously missed or incorrect income tax return. It applies in the following scenarios:
Failure to file ITR originally
Under-reporting of income
Reporting income under the wrong head (e.g., business income shown as salary)
Selecting the wrong tax slab or regime
Omission of foreign income or interest
However, ITR-U cannot be used in cases where:
A search/seizure or survey has been conducted
The updated return shows a reduction in tax liability or claims a refund
The taxpayer is under legal proceedings under the Income Tax Act
Here’s how the updated time frame works:
| Financial Year | Assessment Year | Last Date to File ITR-U |
|---|---|---|
| 2024–25 | 2025–26 | March 31, 2030 |
So, for returns related to FY 2024–25, taxpayers can now use ITR-U to amend or file returns up to five years from now.
Aligned with the Finance Act 2025 changes
Extended window from 24 to 48 months
Available for voluntary compliance
Helps avoid penalties and notices by self-correction
Can be filed even if no return was filed earlier
This update by the CBDT is a significant relief for taxpayers, especially for those who realized their mistakes late or couldn’t file their returns on time due to unforeseen reasons. With a full 4-year window, the new ITR-U framework promotes voluntary compliance and helps maintain cleaner, more accurate income tax records.
Taxpayers are encouraged to keep an eye on the official income tax portal and consult their tax advisors to make the most of this extended filing facility.
