If you missed your ITR deadline, don’t wait until the penalty increases. File your updated return…

If you missed your ITR deadline, don’t wait until the penalty increases. File your updated return as early as possible to avoid higher tax liabilities.

New ITR-U Filing Rules from April 1, 2025: 48-Month Window, Conditions, and Penalties Explained The Central Board of Direct Taxes (CBDT) has officially notified the updated ITR-U form, making it easier for taxpayers to voluntarily correct past omissions or mistakes in their income tax returns. This change comes after the Finance Act, 2025, amended key provisions, particularly Section 139(8A) of the Income Tax Act. Effective April 1, 2025, taxpayers now have 48 months—up from the earlier 24 months—to file their updated returns. This extension is a significant move to promote voluntary compliance and reduce litigation.

What is ITR-U? The ITR-U (Updated Return) form is a simplified income tax return form that allows taxpayers to rectify previously unreported or misreported income. It gives taxpayers a final opportunity to comply if they missed filing the original or belated returns, or made errors in them. The form is available to both individuals and entities, regardless of whether an original return was filed or not for the respective Assessment Year (AY).

Key Highlights of the New ITR-U Rules New Deadline: ITR-U can now be filed within 48 months from the end of the relevant assessment year, instead of the previous 24-month limit.

Applicable from: April 1, 2025.