The ITR-U provision, introduced in 2022, offers taxpayers the flexibility to correct any errors or disclose previously unreported income in their original filed returns. Filing before March 31, 2025, will incur a lower additional tax of 25%.

Taxpayers in India are racing against time to file their updated Income Tax Returns (ITR-U) for the financial year 2022-23 (assessment year 2023-24) before the critical deadline of March 31, 2025. The Income Tax Department has strongly urged individuals to ensure timely filing, emphasising that returns filed before this date will incur a lower additional tax rate of 25%. In contrast, missing the deadline will result in a significant financial impact, as the additional tax burden will rise to 50%, along with interest charges.