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A facility allowing taxpayers to rectify mistakes, disclose omitted income, or file returns if they missed the due date. Introduced to reduce litigation and promote voluntary compliance. Updated Income Tax Return (ITR-U) is a mechanism introduced to promote voluntary tax compliance and reduce litigation. It allows taxpayers to rectify mistakes, disclose omitted income, or file a belated return by paying the applicable additional tax, interest, and fees. But Updated Income Tax Return (ITR-U) cannot be filed in certain cases such as:
An updated return can be filed within 48 months (4 years) from the end of the relevant Assessment Year (AY). Example: For AY 2025-26 (FY 2024-25), an updated return can be filed up to March 31, 2030. taxpayers have more flexibility to ensure accuracy in their filings and avoid penal consequences.
In the following case ITR U can be file
As per Section 139(8A) of the Income Tax Act, 1961 (amended via Finance Act, 2025), ITR-U is a second chance for taxpayers to come clean on undisclosed or misreported income by paying extra tax. It’s a compliance opportunity, not a tool to reduce tax liability or claim extra refunds Taxpayer can filing ITR-U requires payment of additional tax:
Updated Income Tax Return -ITR-U Filing Enabled via ITR-3 & ITR-4 : The Central Board of Direct Taxes (CBDT) has now enabled filing of Updated Income Tax Returns (ITR-U) through ITR-3 and ITR-4 forms on the e-filing portal for Assessment Year 2021-22 and Assessment Year 2022-23. Taxpayers can also file ITR-U using the offline Excel utilities of the respective forms.
You cannot file ITR-U if you are:
As per Section 139(8A) of the Income Tax Act, 1961 (amended via Finance Act, 2025), taxpayers now have up to 48 months from the end of the relevant assessment year to file an Updated Return. This extension (earlier 24 months) gives taxpayers additional time to:
A noble chance to contribute at least INR 5,000 extra towards nation-building.
Freedom from the “burden” of carrying forward your losses — who needs them anyway?
Liberty to file your return whenever your heart desires.
Absolute peace of mind during festivals and holidays — no tax stress to disturb the fun.
No more waiting in long queues at your CA’s office — because you’re filing after the rush!
Relief from the age-old dilemma: Old Regime vs New Regime.
A guaranteed escape from portal crashes and website glitches (since you’re filing after the crowd).
A tension-free CA who can now handle your return at leisure.
And finally, by paying extra tax, penalty, and interest, you proudly showcase a higher level of patriotism than ordinary taxpayers.
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