ITR-U Filing Window Now Open: Who Can File Updated Income Tax Returns and What You Should Know
The Income Tax Department of India has officially opened the window for filing Updated Income Tax Returns (ITR-U) for Assessment Years 2020–21 and 2022–23. This update is crucial for taxpayers who missed declaring income, made reporting errors, or failed to file a return during the original deadlines.
Announced through the department’s official handle on social media platform X (formerly Twitter), the ITR-U facility is available via the e-filing portal at incometax.gov.in. It gives taxpayers a second chance to correct omissions or mistakes made in their previous filings — but with added tax implications.
What Is ITR-U and Why Was It Introduced?
The ITR-U (Updated Return) mechanism was introduced in 2022 under Section 139(8A) of the Income Tax Act, 1961. The aim was to allow taxpayers who:
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Missed filing their original or belated return
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Made errors in their filed ITR
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Forgot to report certain incomes
…to voluntarily update and correct their return, even years later.
This provision promotes transparency and compliance while avoiding penalties from future assessments or notices.
Extended Deadline: Now You Have 48 Months
In a taxpayer-friendly move, the Union Budget 2025 extended the deadline for filing an updated return from 24 months to 48 months after the end of the relevant assessment year. For instance:
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For AY 2020–21, taxpayers can file ITR-U until March 2025
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For AY 2022–23, the deadline extends to March 2027
This extended window provides a wider opportunity for honest corrections and income declarations.
Who Can File ITR-U?
You are eligible to file ITR-U if:
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You missed filing the original return
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You failed to file a belated return
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You forgot to report certain incomes like capital gains, foreign assets, or interest earnings
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You want to rectify mistakes in your earlier ITR submissions
Even if you missed the belated return deadline (31st July of the following assessment year), you can still file ITR-U and avoid harsher consequences.
Who Cannot File ITR-U?
The facility cannot be used in the following cases:
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If the updated return reduces your tax liability
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If you’re filing to claim a refund
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If your case is under assessment, reassessment, or scrutiny
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If search, seizure, or survey operations have been initiated against you
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If any legal proceedings related to income tax are pending against you
Additional Tax Payable with ITR-U
While ITR-U offers a second chance, it comes at a cost. Taxpayers filing updated returns must pay an additional tax on top of the regular tax liability. Here's how it works:
| Time Since End of Assessment Year | Additional Tax Applicable |
|---|---|
| Within 12 months | 25% of due tax |
| 12 to 24 months | 50% of due tax |
| 24 to 36 months | 60% of due tax |
| 36 to 48 months | 70% of due tax |
This additional levy is aimed at encouraging timely compliance while deterring misuse of the provision.
How to File ITR-U
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Visit the official income tax portal: incometax.gov.in
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Log in using your PAN credentials
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Navigate to the ITR-U filing section
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Select the relevant assessment year (2020–21 or 2022–23)
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Provide the necessary disclosures and submit
You may also need to calculate and pay any pending tax dues, along with the applicable additional tax, before submission.
Final Thoughts
The reopening of the ITR-U window is a golden opportunity for taxpayers to set their records straight and stay on the right side of the law. Whether you missed the deadline due to oversight or forgot to report an income, now is the time to take corrective action — before scrutiny finds you first.
Filing ITR-U not only avoids penalties and prosecution but also reflects financial honesty, which can be crucial for future creditworthiness, visa approvals, and audits.
For complete details and assistance, consult a certified tax expert or visit the official portal.
