CBDT notifies revised Updated ITR (ITR-U): Time limit extended to 48 months

3 min read | Updated on May 21, 2025, 17:09 IST

SUMMARY

The Income Tax Department notifies ITR forms every year with key updates. For the assessment year 2025-26 (AY26), all forms have been released and changes have been announced. In the latest notification dated May 19, 2025, the IT department released ITR-U, which is used by taxpayers to update their previously filed income tax returns (ITR).

CBDT revised ITR-U form, Updated ITR time limit 48 months, Income Tax return update 2025

ITR-U can be filed even if a taxpayer fails to file the original return, and can only be used once in an assessment year.

After notifying ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, ITR-7, and ITR-V, the Central Board of Direct Taxes (CBDT) has now notified the revised Updated ITR (ITR-U) form. All these ITR forms serve different purposes, like ITR-1 is for salaried individuals with income up to ₹50 lakh, and ITR-5 is for firms, LLPs, etc.

In a notification dated May 19, 2025, the Income Tax department released the revised ITR-U form as per the Finance Act, 2025. The major update in this year’s ITR-U is that taxpayers can now file it up to 48 months, as announced in Budget 2025.

What is ITR-U?

Initially introduced under Section 139(8A) of the Income Tax Act by the Finance Act, 2022, ITR-U (Updated Income Tax Return) allowed taxpayers to file ITR-U within 24 months from the end of the relevant assessment year, if they missed filing original or belated return, misreported or omitted income, or if they wished to correct any errors in an ITR. The Finance Act 2025 has extended this time limit to 48 months.

ITR-U can be filed even if a taxpayer fails to file the original return, and can only be used once in an assessment year. However, it cannot be used to claim additional refunds or to reduce tax liability. Further, penalty tax is applicable on filing ITR-U—25% if filed within the first year (12 months), and 50% if filed in the second year (between 12-24 months).

ITR-U: Key updates

The time limit to file ITR-U has been extended to 48 months. Additional tax payable after filing in the third year (after 24 months) is 60%, while in the fourth year (after 36 months), a 70% additional tax would be applicable, according to the Amendment to Section 140B.

According to the Amendment to Section 139(8A), ITR-U cannot be filed if a notice under Section 148A (show-cause notice) is issued after 36 months from the end of the relevant assessment year. However, if the order under Section 148A(3) later says that the case under Section 148 is not valid, ITR-U can still be filed within 48 months from the end of the relevant AY.

ITR filing for AY 2025-26

All ITR forms have now been notified for the assessment year 2025-26. While ITR filing for AY26 has not begun yet, you must know about all ITR forms and choose the correct one to file your ITR. The deadline for filing ITR (non-audit cases) is July 31, 2025.