Income Tax Filing 2025: CBDT Notified Updated ITR-U Form with Extended Filing Window and Revised Rules

The Central Board of Direct Taxes (CBDT) has released a new version of the Income Tax Updated Return form, known as ITR-U, incorporating key amendments announced in Budget 2025. These changes are effective from April 1, 2025.

Extended Time Limit for Filing Updated Returns

One of the most significant changes under the Finance Act, 2025, is the extension of the time frame to file an updated return—from 24 months to 48 months after the end of the relevant assessment year. As a result, taxpayers now have up to 4 years to revise their income tax filings for the following assessment years:

• AY 2021–22
• AY 2022–23
• AY 2023–24
• AY 2024–25

Additional Tax for Late Filings

While this extension offers more flexibility, it comes at a cost. The later you file, the higher the penalty:

• Within 12 months: 25% additional tax on the due tax and interest
• 13–24 months: 50% additional tax
• 25–36 months: 60% additional tax
• 37–48 months: 70% additional tax

Deadline to File Updated Returns

Specific deadlines have been set based on the financial year in which the income was earned:

• FY 2023–24 → March 31, 2029
• FY 2022–23 → March 31, 2028
• FY 2021–22 → March 31, 2027
• FY 2020–21 → March 31, 2026

Important Restrictions

Despite the extended time frame, certain restrictions apply:

• You cannot claim refunds or carry forward losses through an ITR-U.
• You cannot decrease the income declared in a previously filed return.
• If the income tax department has already initiated proceedings for a specific year, filing an ITR-U for that year is not permitted.

Also Read: Income Tax Filing 2025: CBDT Notifies All ITR Forms for AY 2025–26 with Significant Updates

Key Legislative Updates

Several provisions in the Income Tax Act have been revised to accommodate these changes:

• Section 139(8A): Taxpayers cannot file an updated return if a notice under Section 148A is issued more than 36 months after the end of the relevant assessment year. However, if the assessing officer determines under Section 148A(3) that the case doesn't warrant reassessment, the taxpayer may still submit an updated return within the 48-month window.
• Section 140B: Updated to reflect the higher tax penalties for delayed filings.
• Rule 12AC: Modified to align procedural rules with the changes introduced in the updated ITR-U process.

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