Updated Return (ITR-U) Now Available for AY 21-22, 22-23, 23-24, 24-25

Rate this post

The Income Tax Department has rolled out a major relief for taxpayers by enabling past years’ ITR utilities on the Income Tax e-filing portal. This update comes after the amendment in the law, allowing taxpayers to file an Updated Return (ITR-U) within 48 months from the end of the relevant Assessment Year.

This step is a big help for individuals, professionals, and businesses who missed reporting income or made mistakes in earlier returns.

What is an Updated Return (ITR-U)?

An Updated Return, introduced under Section 139(8A) of the Income Tax Act, allows a taxpayer to:

Declare income that was omitted earlier.
Correct any mistakes in the originally filed ITR.
File ITR if it was not filed at all for that year.

Earlier, the time limit was 24 months. After the Finance Act 2025 amendment, taxpayers now get 48 months (i.e., 4 years) from the end of the relevant Assessment Year.

Availability of Past Years’ ITR Utilities

The Income Tax e-filing portal now provides utilities for earlier years, enabling filing of Updated Returns for:

AY 2021-22 (FY 2020-21)
AY 2022-23 (FY 2021-22)
AY 2023-24 (FY 2022-23)
AY 2024-25 (FY 2023-24)

👉 Depending on when the ITR is being filed, different slabs of additional tax will apply.

Additional Tax on Updated Return

The law requires taxpayers to pay extra tax while filing an ITR-U. The percentage depends on how late you file:

Within 12 months: 25% of total tax + interest payable.
After 12 months but within 24 months: 50% of tax + interest.
After 24 months but within 36 months: 75% of tax + interest.
After 36 months but within 48 months: 100% of tax + interest.

This structure encourages taxpayers to correct their returns as early as possible.

Why is This Important?

Avoid Penalties & Notices – By filing updated returns, taxpayers can voluntarily correct omissions before detection by the Income Tax Department.
Compliance Relief – Past year utilities make it easier to rectify old mistakes in an organised way.
Transparency & Trust – Encourages honest reporting and expands the tax base.

Example

Suppose a taxpayer forgot to disclose ₹2,00,000 interest income in AY 2021-22.

If they file an Updated Return in 2025 (within 48 months), they can declare this income now.
However, they must pay normal tax + interest + additional tax (up to 100%) depending on the filing period.

How to File Updated Return

Visit 👉 Income Tax e-Filing Portal
Select the relevant AY and download the ITR Utility (now available for past years).
Fill in income details and choose ITR-U option.
Compute and pay due tax, interest, and additional tax.
Upload the return and keep acknowledgment for records.