Income Tax: ITR(U) filing deadline extended to 48 months–Key details you need to know | Mint

Did you miss reporting a particular income while filing your income tax return (ITR) a few years ago — say three years ago? You do not need to fret over this anymore since you can file a fresh tax return under the head of ITR(U) to report that unreported income and pay the outstanding tax.

This way you can spare yourself from any penalty or action that could have been initiated by the tax department if the reported income came to their notice.

Union Finance Minister Nirmala Sitharaman — during Budget 2025 speech on Saturday — announced the extension of the time limit to file updated returns for any assessment year from the current limit of two years to four years.

Those who are not aware – Ms Sitharaman had introduced the ITR (updated) facility in 2022 for voluntary compliance by taxpayers who had omitted to report their correct income. Following this, around 90 lakh taxpayers voluntarily updated their incomes by paying additional tax.

It was because of this positive response that led to the government extending the timeframe during Budget 2025.

What is an updated return?

It is a tax return that allows taxpayers to file their returns with more time. It is intended to encourage voluntary tax compliance and bring down litigation between the tax department and taxpayers.

When was it announced?

It was announced during Budget 2022 when the time period was two years. In Budget 2025, this time frame has been extended to 48 months i.e., four years.

In what circumstances can it be filed?

It can be filed by any person by any person in any case except under certain circumstances. A person can file an updated return even if he has furnished a return of loss under section 139(3) earlier for the relevant assessment year, but the updated return should not be a return of loss.

When can it not be filed?

There are a number of circumstances wherein an updated return can not be filed. These are as follows:

I. Total income leads to lower tax liability

II. When it leads to an income tax refund or increase in refund

III. When a survey is conducted, or search is initiated against the assessee

IV. When documents are seized or requisitioned

V. Where any prosecution proceedings have been initiated against the person.

VI. When assessment or reassessment or recomputation or revision is pending or has been completed.

So, one must remember that an updated return is meant to pay a tax which you missed paying while filing the actual return, and not to claim an income tax refund.

Besides, an updated return cannot be revised as it can be filed only once for any particular assessment year.