Income Tax: After ITR-1 to ITR-7, CBDT notifies ITR-U. All it is advisable know in regards to the newest modifications | Mint

After notifying all revenue tax types from ITR-1 to ITR-7, Central Board of Direct Taxes (CBDT) has now notified ITR-U (up to date) as nicely by way of notification dated May 19, 2025.

To encourage voluntary compliance, the Government of India, by way of Finance Act 2025, prolonged the time restrict to file the updated return from 24 months to 48 months from the tip of the related evaluation yr.

Notably, submitting an up to date return results in extra tax payable. From the extra 24 months to 36 months — extra tax payable is 60 p.c of the combination of tax and curiosity payable. And the extra tax payable will likely be 70 p.c of the combination of tax and curiosity through the interval of 36 to 48 months.

What is ITR-U?

Those who aren’t conscious, the supply of income tax return (updated) was first launched in Finance Act 2022 to permit the taxpayers to rectify the errors of omission and fee they could have made whereas estimating their revenue for tax fee. That time, the utmost time interval that was given for submitting an up to date return was two years from the tip of the related evaluation yr.

Unlike the common deadline of July 31, the up to date return’s deadline is March 31. For occasion, March 31 2025 was the final date to file up to date returns for FY 2021-2022. Read this Livemint article for additional particulars on this.

Changes integrated

First of all, the time restrict has been prolonged from present two to 4 years per the Finance Bill 2025.

The newest notification additionally incorporates the next modifications other than extending the time restrict from two years to 4:

1. Show trigger discover: An up to date return can’t be filed if present trigger discover beneath part 148A has been issued after 36 months from the tip of the related evaluation yr. However, later if 148A(3) order is handed saying that it isn’t a legitimate case for discover beneath part 148, then an up to date return might be filed inside 48 months from the tip of related evaluation yr.

2. Additional revenue tax: As defined above, the up to date return entails fee of extra revenue tax for the prolonged timelines. As a outcome, part 140B has been amended accordingly.

3. CBDT notification additionally highlighted that rule 12AC has additionally been amended to replicate these modifications.

ITR-U not permitted within the following situations

There are quite a few instances when taxpayers aren’t permitted to file an up to date ITR. These embody the next:

I. When after the ITR -U (up to date), whole revenue results in smaller tax legal responsibility.

II. When it’s being filed to assert tax refund.

III. When a survey has already been carried out, or search has already been initiated in opposition to the taxpayer

IV. Additionally, when the tax division has seized taxpayer’s paperwork.

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