The Central Board of Direct Taxes (CBDT) has notified a new ITR-U (updated income tax return) form to facilitate taxpayers in rectifying errors and omissions in previously filed ITRs. Before this, the Income Tax Department notified as many as 7 ITR forms for the Assessment Year 2025-26.

In Budget 2025, the government amended the filing rules for ITR-U. The new filing rules have been effective from April 1, 2025. The concept of ITR-U form was, however, brought in the Budget 2022.

What is ITR-U form?

ITR-U form has been introduced under Section 139(8A) to correct errors or omissions in their previously filed ITR. This ITR form can also be used in case of a missed income tax return where the assessee fails to file it within the due date and the belated/revised return deadline.

Taxpayers were allowed to file ITR-U within two years from the end of the relevant Assessment Year (AY). Now, the Finance Act increased the limit to 48 months.

Also read: All ITR forms notified for AY 2025-26 but you still can’t file your income tax return – Find out why

Example: For Assessment Year 2023-24, if the taxpayer missed filing ITR or the belated/revised return, he or she can has a chance to still file ITR-U from 1st January 2024 to 31st March 2026.

The Income Tax Department has now notified Rule 12AC and new Form ITR-U to help taxpayers file updated income returns vide the Income-tax (Eleventh Amendment) Rules, 2022.

Additional tax payable

If the assessee files the return within 12 months from the end of the assessment year, 25% additional tax on the aggregate tax and interest will be levied. If this period is extended to 24 months, the additional tax amount will be 50%. If the updated return is filed between 24 months and 36 months, the additional tax to be levied is 60%. In case the updated tax return is filed between 36 months and 48 months, the taxpayer is liable to pay 70% of the additional tax.