ITR-U Filing Deadline 2025: Who Can File and How to Avoid Penalty

The ITR-U or Updated Income Tax Return allows taxpayers to correct or update previously filed returns within a specified window. For FY 2024-25 (AY 2025-26), the original return deadline has been extended to September 15, 2025, followed by a belated filing period until December 31, 2025. From April 1, 2026, taxpayers can file an ITR-U to make corrections until March 31, 2030—an extended 48-month period introduced under the Finance Act 2025. These changes make tax compliance more flexible while encouraging timely reporting and error-free filings.

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Table of Contents

Understanding the ITR-U Filing Deadline for 2025  Eligibility Criteria – Who Can File ITR-U?  Key Changes in ITR-U Rules Under Budget 2025  Step-by-Step Process to File an Updated Return (ITR-U)  Penalties and Additional Tax on Late ITR-U Filing  How to Avoid Penalty While Filing ITR-U  Benefits of Filing ITR-U Early  Common Mistakes to Avoid During ITR-U Filing  How TaxBuddy Simplifies the ITR-U Filing Process  Final Take on ITR-U Filing for FY 2024-25 (AY 2025-26)  Conclusion  FAQs

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Understanding the ITR-U Filing Deadline for 2025

The Updated Income Tax Return (ITR-U) was introduced to give taxpayers a second chance to correct or update any missed or misreported information in their previous income tax filings. For the Financial Year 2024-25 (Assessment Year 2025-26), the deadline to file the original return for non-audit taxpayers has been extended to September 15, 2025, instead of July 31, 2025. Taxpayers missing this date can still file a belated return until December 31, 2025. However, if any mistakes or omissions are identified after that, they can file an ITR-U from April 1, 2026, to March 31, 2030. The 48-month filing window—expanded from the previous 24-month period under the Finance Act 2025—provides greater flexibility to ensure compliance and accuracy.

Eligibility Criteria – Who Can File ITR-U?

Any individual, firm, or company that has either failed to file an income tax return or needs to correct errors in a previously filed return can submit an ITR-U under Section 139(8A) of the Income Tax Act. Eligible cases include misreported income, omission of income sources, incorrect tax rates applied, or wrong head of income selected. It also covers revisions such as reducing carried-forward losses, adjusting unabsorbed depreciation, or correcting TDS credits. However, ITR-U cannot be used for claiming additional refunds or reducing the tax liability that was originally declared. It is meant only for correcting underreporting or non-reporting of income to ensure fair disclosure before any assessment or notice from the Income Tax Department.

Key Changes in ITR-U Rules Under Budget 2025

Budget 2025 introduced notable updates to the ITR-U framework. The most significant change is the extension of the filing window from 24 months to 48 months from the end of the relevant assessment year. This allows taxpayers four years to identify and rectify errors without waiting for departmental scrutiny. The new provision aims to promote voluntary compliance and reduce litigation. Additionally, penalty rates have been realigned to encourage earlier filing within the extended period. These changes, combined with improvements in digital e-filing systems, make it easier for taxpayers to amend returns without procedural delays.

Step-by-Step Process to File an Updated Return (ITR-U)

1. Visit the official Income Tax e-filing portal (www.incometax.gov.in).

2. Log in using PAN credentials linked to your account.

3. Navigate to the ‘File Income Tax Return’ section and select the appropriate assessment year.

4. Choose the ITR-U option under Section 139(8A).

5. Select the reason for updating your return, such as omission or incorrect reporting of income.

6. Update relevant details in the return form, ensuring all TDS, advance tax, and income details match official records.

7. Calculate the additional tax payable based on the period of delay (25%, 50%, 60%, or 70%).

8. Pay the required tax and interest using Challan ITNS 280.

9. Review all details and submit the updated return electronically.

10. Verify the return using Aadhaar OTP, net banking, or electronic verification code (EVC).

Completing these steps carefully ensures the updated filing is valid and compliant.

Penalties and Additional Tax on Late ITR-U Filing

While ITR-U provides flexibility, it also introduces additional tax charges for late correction. If the updated return is filed within 12 months from the end of the relevant assessment year, an additional 25% of the tax and interest due must be paid. Filing after 12 but within 24 months attracts 50% additional tax, between 24 and 36 months adds 60%, and between 36 and 48 months adds 70%. These rates increase progressively to promote timely corrections. Additionally, a late filing fee under Section 234F applies if the original ITR was not filed — ₹5,000 for income above ₹5 lakh and ₹1,000 for income up to ₹5 lakh. Timely filing remains the best way to avoid unnecessary costs.

How to Avoid Penalty While Filing ITR-U

Taxpayers can minimize or eliminate penalties by adopting proactive measures. Filing the original return by the September 15, 2025 deadline helps avoid late fees and interest. If a mistake is found after filing, submitting an ITR-U as early as possible within the 48-month window ensures lower additional tax. It is also crucial to verify Form 26AS and the Annual Information Statement (AIS) for accuracy before submission. Professional assistance or reliable digital platforms like TaxBuddy can help identify discrepancies, calculate penalties correctly, and ensure error-free submissions, significantly reducing the chances of further compliance issues.

Benefits of Filing ITR-U Early

Early filing of ITR-U not only saves on penalties but also protects against departmental scrutiny or reassessment. It reflects voluntary compliance and strengthens a taxpayer’s credibility. Filing corrections early helps in claiming legitimate deductions and maintaining accurate tax records, which can be beneficial for future loans or visa applications. It also helps avoid interest accumulation on unpaid taxes. With advanced filing tools available today, early correction has become simpler, more transparent, and less stressful.

Common Mistakes to Avoid During ITR-U Filing

Many taxpayers commit avoidable errors while filing an updated return. Common issues include failing to reconcile AIS data with declared income, choosing the wrong income head, or misreporting TDS credits. Others forget to pay the additional tax before submission, resulting in invalid filing. Using outdated forms or not updating address and bank details can also delay processing. Reviewing every section carefully before submission, maintaining a clear paper trail, and verifying acknowledgments can prevent these mistakes.

How TaxBuddy Simplifies the ITR-U Filing Process

TaxBuddy provides an efficient way to file ITR-U through a mix of AI-driven automation and expert-assisted support. The platform cross-checks data from Form 16, AIS, and TDS certificates to identify mismatches instantly. It also calculates additional tax and penalties automatically, ensuring accuracy and compliance. Whether it’s a missed income entry or an incorrect deduction claim, TaxBuddy’s mobile app offers real-time error detection and guided filing. This minimizes the risk of penalty while saving time and effort for taxpayers.

Final Take on ITR-U Filing for FY 2024-25 (AY 2025-26)

The introduction of a 48-month filing period for ITR-U under Budget 2025 is a significant step toward making tax compliance more flexible and transparent. It offers taxpayers a clear opportunity to correct past omissions while discouraging delays through progressive penalties. Staying informed about deadlines and using reliable platforms like TaxBuddy can help ensure accuracy, reduce penalties, and maintain smooth compliance.

Conclusion

The ITR-U system empowers taxpayers to voluntarily correct or update their tax records with greater flexibility. By providing a four-year window for updates, it reduces the fear of assessments and promotes honest declarations. To ensure a smooth experience, accurate reporting, and timely compliance, it’s best to seek professional support or digital assistance. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.

FAQs

Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?

TaxBuddy offers both self-filing and expert-assisted plans to suit the varying needs of taxpayers. The self-filing plan is ideal for individuals who are comfortable handling their own tax filing using automated tools and AI-driven error checks. The expert-assisted plan, on the other hand, connects users with qualified tax professionals who guide them through every step — from reviewing Form 16 and TDS details to verifying deductions and ensuring compliance with the latest income tax rules. This flexibility helps users choose the approach that best aligns with their comfort level and the complexity of their financial situation.

Q2. Which is the best site to file ITR?

The official Income Tax Department e-filing portal (www.incometax.gov.in) is the most authentic and secure platform for filing income tax returns in India. However, many taxpayers prefer using reliable private platforms like TaxBuddy due to their simplicity, user-friendly interfaces, and built-in expert support. TaxBuddy, for instance, not only automates data entry from Form 16 and AIS but also helps detect potential mismatches, calculate refunds, and optimize deductions. This makes it one of the most efficient and trusted platforms for individuals and small businesses alike.

Q3. Where to file an income tax return?

Income tax returns can be filed online through two main methods: directly on the government’s official portal (www.incometax.gov.in) or via registered third-party e-filing platforms like TaxBuddy. The process typically involves logging in with your PAN credentials, selecting the correct ITR form, uploading income details, verifying TDS data, and submitting the return electronically. Using platforms such as TaxBuddy streamlines the entire process, as the software automatically imports necessary information and ensures that all required sections are filled accurately before submission.

Q4. What is ITR-U and why is it important?

ITR-U stands for Updated Income Tax Return, introduced under Section 139(8A) of the Income Tax Act. It allows taxpayers to correct or update any mistakes, omissions, or underreported income in their previously filed ITRs. The importance of ITR-U lies in its ability to help taxpayers avoid penalties, scrutiny, or reassessment notices by voluntarily disclosing accurate information. It acts as a safeguard against future legal complications, allowing individuals to stay compliant while maintaining transparency with the Income Tax Department.

Q5. Who can file ITR-U under Section 139(8A)?

Any taxpayer — whether an individual, firm, or company — who wishes to rectify mistakes in their previously filed return or file one if it was missed altogether can use ITR-U. Common scenarios include incorrect income reporting, omission of foreign income, claiming ineligible deductions, or misreporting under the wrong income head. Even those who did not file their original return can submit an ITR-U to regularize their compliance. However, ITR-U cannot be filed to claim an additional refund or to reduce an already declared tax liability.

Q6. What is the last date to file ITR-U for FY 2024-25 (AY 2025-26)?

For the Financial Year 2024-25, the ITR-U filing window opens from April 1, 2026, and remains available until March 31, 2030. This provides taxpayers a 48-month period from the end of the relevant assessment year to update their returns. This extended timeline, introduced under the Finance Act 2025, gives ample time to identify and rectify any discrepancies while encouraging voluntary compliance. Filing within the earlier months of this window is advisable to minimize the additional tax and interest payable on the corrections made.

Q7. What penalties apply if I delay ITR-U filing?

Late filing of ITR-U attracts progressive additional tax depending on how late the updated return is filed. If submitted within 12 months after the end of the relevant assessment year, an additional 25% of the total tax and interest is payable. Filing between 12 and 24 months increases the charge to 50%, between 24 and 36 months to 60%, and between 36 and 48 months to 70%. Apart from this, if the original ITR was never filed, a late fee under Section 234F is applicable — ₹5,000 for incomes above ₹5 lakh and ₹1,000 for incomes up to ₹5 lakh.

Q8. Can I file ITR-U if I missed filing the original ITR?

Yes, taxpayers who did not file their original income tax return can use the ITR-U form to submit it even after the belated filing deadline has passed. This provision enables non-filers to regularize their tax status without facing the risk of receiving scrutiny or penalty notices later. The only condition is that they must pay the full due tax, applicable interest, and additional tax percentage based on how late the filing is done. This ensures both compliance and avoidance of legal consequences.

Q9. How much additional tax is payable under ITR-U?

The amount of additional tax payable depends on the timing of filing relative to the end of the assessment year.

• If filed within 12 months: 25% of total tax and interest.

• Between 12 to 24 months: 50%.

• Between 24 to 36 months: 60%.

• Between 36 to 48 months: 70%.

For instance, if a taxpayer realizes a missed income two years after the assessment year and files ITR-U at that point, 50% additional tax on the total outstanding amount (tax + interest) will apply. These progressive rates encourage early correction to limit the financial burden.

Q10. Can updated returns be filed multiple times for the same year?

No, ITR-U can be filed only once for each assessment year. Taxpayers must therefore ensure that all omissions, corrections, or misreporting issues are addressed in a single submission. The form does not permit multiple updates for the same financial year to prevent misuse or repeated amendments. Before filing, taxpayers should thoroughly review their financial data, verify AIS, Form 26AS, and other relevant documents to ensure the updated return is complete and accurate.

Q11. What are the benefits of using the TaxBuddy app for ITR-U filing?

The TaxBuddy app offers several advantages for taxpayers filing ITR-U. Its AI-powered system automatically extracts income details from Form 16 and AIS, identifies potential mismatches, and calculates additional taxes and penalties based on the delay period. It also provides real-time error detection, saving users from manual recalculations. With expert-assisted plans, TaxBuddy professionals verify every entry before submission, ensuring full compliance with Section 139(8A). This combination of automation and expert review minimizes the risk of mistakes and ensures timely, hassle-free filing.

Q12. How does ITR-U help avoid scrutiny or reassessment by the Income Tax Department?

Filing an updated return under ITR-U demonstrates voluntary compliance, which significantly lowers the chances of reassessment or scrutiny under Sections 143(3) or 147. When taxpayers proactively disclose missed income or errors before receiving a notice, the Income Tax Department treats it as a self-correction rather than a concealment attempt. This reduces the risk of investigations, penalties, and prolonged assessments. Essentially, ITR-U acts as a preventive mechanism that protects taxpayers from future legal complications while ensuring transparent and accurate reporting.