How to file updated income tax returns after budget 2025 change – CNBC TV18

Budget 2025 has extended the deadline for taxpayers to record the Income Tax Return (ITR-U) from the end of the relevant year to four years from the end of the year to four years. This gives taxpayers more time to improve errors, declare exemption and comply with tax laws.

What is an updated ITR (ITR-U)?

ITR-U is a form that allows taxpayers update their income tax returns if they missed or need to correct errors in returns filed or already filed.

However, taxpayers cannot use ITR -U to claim refunds, reduce tax liability or increase loss.

Who can file ITR-U?

Any taxpayer who has given an error or left income details in any of the following returns can record the updated returns:

• Original return
• Bellit return
• Revised return

When to file itr-u and additional tax payable

Taxpayers will have to pay an additional tax while filing ITR-U. The rate depends on how late the update returns have been filed:

ITR -U additional tax payable

• Relevant Ay 25% Tax + 12 months from the end of interest
• Relevant Ay 50% Tax + 24 months from the end of interest
• Relevant Ay 60% Tax + 36 months from the end of interest
• Relevant Ay 70% Tax + 48 months from the end of interest

Who can’t do ITR-U?

Taxpayers cannot register ITR-U in these cases:

• Already filed an updated return
• A zero withdrawal or a loss withdrawal
• Want to increase the amount
• Updated return results in low tax liability
• Search or survey has been started under sections 132, 133A, or 132A
• Tax evaluation/revaluation is pending or completed
• There is no additional tax (adjusted with TDS/loss)

Step to file ITR-U

• Download Form ITR-U from Income Tax Department website.
• Log in to the e-filing portal and choose “ITR-U)”.
• Enter the required details including additional income and tax payable.
• Calculate and pay additional tax before depositing.
• Submit the form and verify the returns using Aadhaar OTP, net banking or DSC.