Missed Something in Your Tax Filing? ITR-U Filing Now Open: Who’s Eligible, Deadlines and What to Keep in Mind

If you forgot to include an income source or made an error in your previous tax returns, there’s good news. The Income Tax Department has now enabled the Updated Return (ITR-U) filing facility for Assessment Years 2021-22 and 2022-23 under ITR-1 and ITR-2 forms. This update gives taxpayers a much-needed second chance to correct past filings - without inviting legal trouble.

What Is ITR-U ?

Introduced in Budget 2022, ITR-U is a special provision under Section 139(8A) of the Income Tax Act. It allows individuals and Hindu Undivided Families (HUFs) to rectify errors, omissions, or unreported income by filing an updated return - even after missing previous deadlines.

You get 24 months from the end of the relevant assessment year to file ITR-U. Here’s what that means:

• For AY 2021-22 (FY 2020-21): Deadline is March 31, 2024

• For AY 2022-23 (FY 2021-22): Deadline is March 31, 2025

Starting April 1, 2025, the time limit to file an updated return will extend to 48 months, as announced in the 2025 Union Budget.

Who Can File ITR-U ?

You’re eligible to file an updated return using ITR-1 or ITR-2 if:

• You're an individual or a HUF
• You previously filed ITR-1 or ITR-2, or missed filing altogether
• You wish to declare omitted income or correct reporting errors
• No search, survey, or legal proceedings were initiated against you for that year

ITR-1 (Sahaj): For salaried individuals earning up to ₹50 lakh, with income from one house property and other sources (like interest).

ITR-2: For individuals and HUFs not having income from business or profession.

Who Can’t File ITR-U ?

Not all taxpayers can take advantage of this facility. You’re not eligible if:

• You’re trying to claim a refund or reduce your tax liability
• There’s an ongoing assessment or tax proceedings for the year
• A search or survey was conducted by tax authorities
• The updated return would lead to a loss or increase an existing one

What About Penalties?

Filing an updated return comes at a cost:

• 50% additional tax if filed within 12 months
• 100% additional tax if filed between 12 and 24 months
• This penalty is in addition to your normal tax and interest dues.

Why It’s Important

The ITR-U facility reflects a progressive shift toward voluntary tax compliance. It encourages taxpayers to come clean about past mistakes without fearing legal consequences.

However, since it involves extra tax and precise calculations, tax experts recommend consulting a professional before filing.

How to File ITR-U

• Visit the Income Tax e-filing portal.
• Log in with your credentials.
• Choose the relevant assessment year.
• Select the option to file an Updated Return (ITR-U).
• Use the updated ITR-1 or ITR-2 forms as applicable.

The ITR-U is your second shot at getting your taxes right. If you’ve missed something in the past, now’s the time to fix it - before the window closes.