How to file updated income tax return after the budget, know the complete process here

By
Jyoti
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Taxpayers
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In Budget 2025, the deadline for filing updated income tax returns (ITR-U) for taxpayers has been increased from two years to 4 years. This will give taxpayers more time to correct mistakes, declare missed income and comply with tax laws.

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Let us know how a common taxpayer will benefit from this initiative of the government. If you also have to file your updated return, then how will you be able to do it. We are trying to answer all your questions.

What is Updated ITR (ITR-U)?

Updated ITR (ITR-U) is a form that allows taxpayers to update their income tax returns. They can file their returns using this form if they have missed filing the original or belated returns or need to correct errors in previously filed returns. However, taxpayers cannot use ITR-U to claim refunds, reduce tax liability or set off losses.

Who can file ITR-U?

Any taxpayer who has made any mistake or omitted income details in any of the following returns can file an updated return.

When to file ITR-U?

Taxpayers will have to pay additional tax while filing ITR-U. The rate depends on how late the updated return is filed.

  • File ITR-U within the additional tax due
  • 25% of tax + interest within 12 months from the end of the relevant Assessment Year (AY)
  • 24 months from the end of the respective AY 50% of tax + interest
  • 60% of tax + interest 36 months from the end of the respective AY
  • 48 months from the end of the respective AY 70% of tax + interest

Who cannot file ITR-U?

  • Updated return has already been filed.
  • Filing of nil return or loss return.
  • Want to increase the refund amount.
  • Updated returns result in lower tax liability.
  • Search or survey has been initiated under section 132, 133A, or 132A.
  • Tax assessment/reassessment is pending or completed.
  • No additional tax is due (adjusted with TDS/loss).

How to file updated returns? 

  • Download the ITR-U form from the Income Tax Department website.
  • Login to the e-filing portal and select “Update Return (ITR-U)”.
  • Enter the required details including additional income and tax payable.
  • Calculate and pay additional tax before submission.
  • Submit the form and verify the return using Aadhaar OTP, Net Banking or DSC.
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