How to Use ITR-U to Fix Errors from FY 2020-21 to FY 2023-24
- Dipali Waghmode
- Jul 17, 2025
- 9 min read
The Income Tax Return (ITR) filing process is integral to ensuring compliance with tax laws. However, taxpayers sometimes make mistakes or miss important details when submitting their returns. To correct these mistakes, the Income Tax Department offers a facility known as the ITR-U (Income Tax Return-Updated), which allows taxpayers to amend their tax returns after the original filing. ITR-U offers taxpayers the ability to fix errors, report omitted income, or claim deductions that were inadvertently missed in the original return. This facility helps reduce the chances of facing penalties or scrutiny, providing taxpayers with the opportunity to revise their ITR and align it with the correct information.
Table of Contents
What is ITR-U?
ITR-U stands for Income Tax Return-Updated. It is a provision introduced by the Income Tax Department that allows taxpayers to correct errors or omissions in their original ITRs after the due date has passed. This form is an option for those who need to amend their filed returns without going through the lengthy process of revising or filing a fresh return. The purpose of ITR-U is to ensure that taxpayers can correct mistakes in their original filings, such as wrong income reporting, missed deductions, or errors in tax calculation.
The ITR-U form helps taxpayers make corrections while avoiding penalties for discrepancies. It is especially useful when taxpayers realize they missed a crucial detail or want to rectify errors that could have an impact on their tax liability or refund.
Who Can File ITR-U?
The ITR-U form can be filed by any taxpayer who has already filed their original ITR but needs to make corrections or updates to that return. This includes individuals, companies, Hindu Undivided Families (HUFs), and other taxpayers subject to the Income Tax Act.
However, there are some specific scenarios where ITR-U can be filed:
Taxpayers Who Have Filed a Return but Need to Correct Mistakes: If you have filed your return but realize that some crucial details were omitted, or you made an error, you can use ITR-U to correct these mistakes.
Taxpayers Who Missed Certain Deductions: If you missed claiming tax-saving deductions like those under Sections 80C, 80D, etc., you can file ITR-U to update the return with these deductions.
Taxpayers Who Need to Correct Income Details: If you reported incorrect income figures, such as missing a side business’s income or mistakenly underreporting income, ITR-U allows you to amend these details.
Taxpayers with Excess Tax Payments: If you have paid more tax than required due to errors in the original filing, you can use ITR-U to correct the return and claim a refund.
Time Limits to File ITR-U
The Income Tax Department has set specific time limits for filing ITR-U. This form can be filed only within the time frame allowed by the Income Tax Act. Here are the key time limits:
Filing Time Limit for FY 2024-25 (Assessment Year 2025-26): The ITR-U can be filed anytime before the completion of the assessment year (i.e., before March 31, 2026). This gives taxpayers a window of about one year to file the updated return, allowing them ample time to make necessary corrections.
Penalty-Free Filing: Filing the ITR-U within the specified period ensures no penalties will be levied. However, if taxpayers fail to file within the deadline, they will be subject to penalties as per the tax laws.
Missed Opportunities: If taxpayers fail to file the ITR-U within the allowed time frame, they lose the opportunity to correct the errors in the original return. This means that any discrepancies or missed opportunities for claiming refunds or deductions cannot be rectified later.
Step-by-Step Guide: Using ITR-U to Fix Errors
Filing an ITR-U is relatively simple, and the Income Tax Department has outlined a detailed procedure for taxpayers to follow. Here’s a step-by-step guide:
Login to the Income Tax Portal: Go to the official Income Tax Department website incometax.gov.in and log in using your credentials (PAN, password, etc.).
Navigate to the ‘ITR-U’ Section: After logging in, find the 'File Income Tax Return' section. In the available options, you will see the option for ‘ITR-U’ (Updated Return). Select this option to proceed.
Choose the Assessment Year and Relevant Form: Select the assessment year (2024-25 for AY 2025-26). Next, choose the relevant ITR form based on your filing category. For most taxpayers, this will be ITR-1 or ITR-2.
Fill in Corrected Information: You will be asked to fill in the updated details, including income, deductions, TDS, and any other necessary corrections. Make sure all data entered is accurate.
Review and Submit: Once all the required changes are made, review the form carefully to ensure there are no errors. After verification, submit the ITR-U form for processing.
E-Verification: Once the return is submitted, it will need to be e-verified. You can use Aadhaar OTP, net banking, or a digital signature for e-verification.
Confirmation: After successful submission and e-verification, you will receive an acknowledgment, and your updated return will be processed.
Key Points and Limitations
While ITR-U is an important tool for taxpayers, there are a few key points and limitations to keep in mind:
Eligibility for Correction: Only those who have already filed an original return are eligible to file an ITR-U. This means that taxpayers who haven't filed their original return cannot use this facility.
No Re-Assessment: The updated return can only correct errors in the original return. It cannot be used to make new claims that were omitted or missed in the original filing.
Penalty for Late Filing: If ITR-U is filed after the due date, taxpayers will be subject to penalties as per the provisions of the Income Tax Act.
Refund Claim: If the ITR-U leads to a tax refund, the refund will be processed only after the return has been successfully accepted and verified by the tax authorities.
Addressing Specific Questions
Can I use ITR-U to claim deductions that I missed in my original filing? Yes, if you missed claiming deductions like those under Sections 80C, 80D, or other tax-saving investments, you can correct this by filing ITR-U and adding the missing deductions.
How does ITR-U differ from a revised return? ITR-U can be filed for rectifying errors after the deadline for the original return has passed, whereas a revised return can be filed before the due date of the assessment year to correct mistakes. ITR-U is a facility for taxpayers who need to make corrections post-deadline.
What if I made a mistake in my revised return? Can I use ITR-U? Yes, you can use ITR-U to correct errors in your revised return if the filing date for the original return has passed, provided you meet the filing deadline for ITR-U.
Conclusion
The introduction of ITR-U provides taxpayers with a valuable tool to correct errors and omissions in their filed returns, allowing them to remain compliant with tax regulations. By giving taxpayers more time and flexibility to rectify mistakes, ITR-U ensures that errors don't lead to penalties or missed opportunities for deductions. However, it’s essential to file within the allowed time frame to avoid penalties and ensure that your corrections are processed accurately. Using ITR-U is an easy and effective way to make necessary corrections and ensure that your tax filings reflect the true picture of your financial situation. For anyone looking for assistance in correcting their returns, it is highly recommended to download theTaxBuddy mobile app for a simplified, secure, and hassle-free experience.
Frequently Asked Question (FAQs)
Q1: Can I file ITR-U if I missed reporting some income?
Yes, you can file an ITR-U (Updated Return) if you missed reporting any income or made any errors in your original return. ITR-U is specifically designed for taxpayers who want to correct or update their previously filed ITR. It provides an opportunity to report any omitted income, deductions, or other errors that were overlooked in the original return. This can be done up until the end of the assessment year, which, for AY 2025-26, would be March 31, 2026.
Q2: What happens if I file an ITR-U after the deadline?
If you miss the deadline for filing ITR-U, you will no longer be allowed to make corrections to your original tax filing. Filing ITR-U after the deadline means that you will not be able to amend the return, and the initial filing will stand as final. If there are any discrepancies or errors in your original return, they will remain unresolved, and you may face penalties or additional interest charges. It’s always best to file ITR-U well before the deadline to ensure that your return is accurate and up-to-date.
Q3: Can I make claims for new deductions using ITR-U?
No, ITR-U is not intended for making new claims for deductions or exemptions. The purpose of filing ITR-U is only to correct errors or omissions in the originally filed return. If you want to claim new deductions that were not included in your initial return, you cannot do so through ITR-U. New claims for deductions or exemptions can only be made in a fresh filing or through revised returns if the due date for filing has not passed.
Q4: How long do I have to file ITR-U?
You can file ITR-U until the end of the assessment year, which for AY 2025-26, is March 31, 2026. This provides taxpayers ample time to correct errors in their tax returns. However, it is recommended to file ITR-U as soon as you realize a mistake or omission to avoid any penalties, interest, or further complications.
Q5: Will filing ITR-U lead to faster processing of my refund?
Filing ITR-U may help resolve discrepancies that could delay your refund. Once the updated return is filed, the Income Tax Department will review it, and the necessary corrections will be made to your tax records. If the changes result in a refund, the department will process it accordingly. However, the speed of processing your refund depends on the nature of the corrections, the complexity of the discrepancies, and the verification process conducted by the tax authorities.
Q6: How do I file an ITR-U?
To file an ITR-U, you need to access the Income Tax e-filing portal. Once logged in, select the “File Income Tax Return” option, and choose the "ITR-U" option to update your return. You will need to provide the assessment year, the original return details, and the corrections you wish to make. Ensure that the necessary supporting documents are available to validate the changes you are making. After filling out the required information, submit the ITR-U form, and the revised return will be processed by the tax authorities.
Q7: Can I file ITR-U for a return filed under the new tax regime?
Yes, you can file ITR-U for a return filed under the new tax regime. If you realize there are discrepancies or missed income reporting, you can correct them using ITR-U, even if the original return was filed under the new tax regime. However, remember that ITR-U only allows corrections, and you cannot change your chosen tax regime once your original return is filed.
Q8: Can I file ITR-U for a business or corporate return?
Yes, businesses or corporate taxpayers can also file ITR-U to correct mistakes in their tax filing. Businesses that missed reporting certain income, deductions, or made errors in financial reporting can use ITR-U to amend their return. Corporate taxpayers should be particularly careful while filing ITR-U since errors or missed reporting may trigger an audit or lead to penalties.
Q9: What are the benefits of filing an ITR-U?
The primary benefit of filing an ITR-U is the opportunity to rectify mistakes in your original return without facing penalties for underreporting income or errors. Filing an updated return helps prevent further legal consequences such as tax notices or audits. It also ensures that your tax filings are accurate, and you are in compliance with the Income Tax Act, reducing the chances of errors that could delay refund processing or lead to additional tax liabilities.
Q10: Is there any fee for filing ITR-U?
No, there is no separate fee for filing an ITR-U. The process is part of the regular tax filing procedure. However, if the updated return results in additional tax liabilities, you may have to pay the due amount along with interest. There may also be penalties in some cases if the correction is made after the prescribed deadline.
Q11: Can I file an ITR-U for income missed in a previous year?
No, you cannot file ITR-U for income missed in a previous assessment year. ITR-U is only meant for correcting errors or omissions in the current year's tax filing. If you need to report missed income from a previous year, you will need to file a revised return for that specific year (if the deadline has not passed), or you may need to approach the tax authorities with an explanation or correction request.
Q12: How does filing ITR-U affect my tax audit?
Filing ITR-U to correct your return does not directly affect your tax audit unless the changes made in the updated return are significant enough to trigger an audit. If the changes are related to income discrepancies or missed reporting, it’s important to ensure that the updated figures are accurately reflected in your books. Any significant discrepancies that come to light during the ITR-U process may result in additional scrutiny or the requirement for a tax audit.
Comments