ITR-U Rules 2025: Filing Window Now 48 Months - All You Need to Know

Starting April 1, 2025, taxpayers in India will get a broader window to correct past mistakes in their income tax returns. The Income Tax Department has rolled out a revamped version of the Income Tax Updated Return form - ITR-U - with major updates as announced in Budget 2025. One of the biggest highlights? The filing deadline has now been doubled to 48 months.

More Time, More Responsibility

Taxpayers can now update or file missing ITRs for the assessment years 2021–22 to 2024–25. Whether you made an error or forgot to file altogether, the ITR-U gives you a second chance — but with strings attached.

Extended Filing Window: You now have up to 48 months (4 years) from the end of the relevant assessment year to file your updated return.

Heavier Penalties:

• If you file in the third year, be ready to pay 60% additional tax.
• Filing in the fourth year bumps it up to a 70% extra tax burden.

New Limitations on Filing

• If a Section 148A show-cause notice is issued after 36 months, you can’t file an ITR-U — unless the notice is later declared invalid.
• These rules aim to prevent misuse and ensure timely disclosure.

Legal Updates You Should Know

• Section 140B: Now clearly outlines the additional taxes due with delayed ITR-U filings.
• Rule 12AC: Has been revised to reflect the new ITR-U rules and timelines.

Looking Ahead: ITR Filing for AY 2025–26

The Income Tax Department has released all seven ITR forms for the assessment year 2025–26. While return filing hasn’t opened yet, most individual taxpayers should prepare to file by July 31, 2025. Deadlines may differ for entities like companies or individuals needing audits.

The updated ITR-U form is a lifeline for those who need to correct or complete past returns — but it comes at a cost. Use the extra time wisely and act before penalties mount.