ITR-U Due Date: Last Date to File Updated Return
Filing an income tax return correctly and on time is a key responsibility for every taxpayer in India. However, mistakes, omissions, or missed filings can still happen despite the best intentions. To address such situations, the Income Tax Department introduced the concept of ITR-U, allowing taxpayers a second chance to correct their tax filings.
The Updated Income Tax Return, officially known as Updated Income Tax Return under section 139(8A), provides a legal pathway to declare missed income, correct errors, or file a return that was not filed earlier—without facing harsh penalties or legal consequences.
In this detailed guide, we will explain everything you need to know about the ITR-U due date, the last date to file updated return, eligibility conditions, penalties, filing procedure, and key things to check before submitting ITR-U.
What Is ITR-U?
ITR-U refers to the Updated Income Tax Return, a special provision introduced under the Income Tax Act to allow taxpayers to voluntarily update their previously filed returns or submit a return if they failed to file one earlier.
This facility was introduced to improve voluntary tax compliance and reduce litigation by giving taxpayers a structured opportunity to rectify past mistakes.
Using ITR-U, a taxpayer can:
- Declare income that was not reported earlier
- Correct wrong income details
- Rectify incorrect deductions or exemptions
- Report foreign income or assets missed earlier
- File a return even if the original or belated return was not filed
The updated return is filed using Form ITR-U along with the relevant ITR form applicable to the taxpayer.
Updated Income Tax Return Under Section 139(8A)
The legal framework for ITR-U is provided under Updated Income Tax Return under section 139(8A) of the Income Tax Act.
This section allows a taxpayer to file an updated return within 24 months from the end of the relevant assessment year, subject to payment of additional tax, interest, and penalty.
Key Objectives of Section 139(8A)
- Encourage voluntary tax disclosure
- Reduce tax evasion and non-compliance
- Provide a correction mechanism without prosecution
- Increase transparency in tax reporting
This provision applies to almost all categories of taxpayers, including individuals, HUFs, firms, and companies, subject to certain exclusions.
ITR-U Due Date: Last Date to File Updated Return
Understanding the ITR-U due date is crucial to avoid missing the opportunity altogether.
Time Limit for Filing ITR-U
The last date to file updated return is 24 months from the end of the relevant assessment year.
Example:
- For Assessment Year (AY) 2022–23
- End of AY: 31 March 2023
- ITR-U filing allowed until: 31 March 2025
- End of AY: 31 March 2023
- For Assessment Year (AY) 2023–24
- End of AY: 31 March 2024
- ITR-U filing allowed until: 31 March 2026
- End of AY: 31 March 2024
This extended window makes ITR-U a powerful compliance tool for taxpayers who realize mistakes long after the original deadlines have passed.
Who Can File ITR-U?
You can file ITR-U if:
- You did not file your original return
- You filed a return but:
- Missed reporting some income
- Claimed incorrect deductions
- Made calculation errors
- Reported wrong income head
- Missed reporting some income
- You want to voluntarily disclose income to avoid future notices
Both resident and non-resident taxpayers can use the updated return facility.
Who Cannot File ITR-U?
Despite its flexibility, ITR-U cannot be filed in certain cases:
- If it results in:
- Refund claim
- Reduction in tax liability
- Increase in carried forward loss
- Refund claim
- If a search, survey, or requisition case is initiated
- If assessment, reassessment, or revision proceedings are completed
- If prosecution proceedings are initiated
- If information related to the taxpayer is received under international agreements
In short, ITR-U can only increase tax liability, not reduce it.
Penalty and Additional Tax on ITR-U
Filing an updated return involves paying additional tax over and above the regular tax liability.
Additional Tax Structure
The penalty depends on when the ITR-U is filed:
- Within 12 months from the end of the assessment year
→ Additional tax: 25% of tax and interest due
- Between 12 to 24 months
→ Additional tax: 50% of tax and interest due
Other Payments Included
- Income tax payable
- Interest under sections 234A, 234B, and 234C (if applicable)
- Late filing fee under section 234F (if applicable)
These amounts must be paid before filing ITR-U.
Things to Be Checked Before Filing ITR-U
Before submitting an Updated Income Tax Return, taxpayers should carefully verify the following:
1. Correct Assessment Year
Ensure the updated return is filed for the correct assessment year, as ITR-U cannot be revised once submitted.
2. Eligibility Conditions
Confirm that your case is eligible under Updated Income Tax Return under section 139(8A) and not restricted due to ongoing proceedings.
3. Accurate Income Reporting
Re-check all income sources including:
- Salary
- Interest income
- Capital gains
- Business or professional income
- Foreign income
4. Correct Tax Calculation
Calculate:
- Total tax payable
- Interest liability
- Additional tax (25% or 50%)
Any shortfall can lead to rejection.
5. Proper Disclosure of Changes
Clearly mention:
- What is being updated
- Reason for filing ITR-U
- Additional income or correction details
6. Payment of Taxes
Ensure that all taxes, interest, and penalties are paid before submission. Challan details must be entered correctly.
7. Correct ITR Form
File the applicable ITR form along with Form ITR-U. Mismatch can invalidate the return.
Step-by-Step Process to File ITR-U
Here is a simplified filing process:
- Identify the relevant assessment year
- Compute total income after including missed income
- Calculate tax, interest, and additional tax
- Pay dues using income tax challan
- Download the applicable ITR form
- Fill Form ITR-U with updated details
- Submit the return electronically
- Verify the return using Aadhaar OTP, EVC, or DSC
Once verified, the updated return is considered filed.
Benefits of Filing Updated Income Tax Return
Filing ITR-U offers multiple advantages:
- Avoids scrutiny and penalties later
- Reduces risk of prosecution
- Builds a clean tax compliance history
- Helps in future loan or visa applications
- Promotes voluntary disclosure
- Peace of mind from legal compliance
Despite the additional tax, the long-term benefits often outweigh the cost.
Common Mistakes to Avoid While Filing ITR-U
- Filing for the wrong assessment year
- Claiming refund in ITR-U
- Incorrect challan details
- Not paying additional tax
- Filing after the 24-month deadline
- Mismatch between ITR and Form ITR-U
Careful review before submission is essential.
How ITR-U Impacts Future Tax Filings
Once an updated return is filed:
- It replaces earlier filed returns for that year
- Losses cannot be increased or carried forward
- Refund claims are not allowed
- Updated income becomes final for assessment purposes
Future returns must reflect continuity with updated income figures.
E-Filing ITR-U: Final Thoughts
Filing an Updated Income Tax Return is a powerful compliance option for taxpayers who want to rectify past mistakes responsibly. However, due to penalties and strict conditions, it should be handled with precision.
If you are planning to efile income tax return or ITR e-Filing, ensure that your updated return is accurate, complete, and supported by correct tax payments. Many taxpayers prefer professional assistance for efile income tax return or ITR e-Filing to avoid errors and rejections.
Platforms like tax2win simplify the process of efile income tax return or ITR e-Filing by offering guided filing, error checks, and expert support, making compliance easier even for complex cases like ITR-U.
Conclusion
The introduction of ITR-U under Updated Income Tax Return under section 139(8A) has empowered taxpayers with a second chance to stay compliant. Knowing the ITR-U due date, understanding the last date to file updated return, and following the correct filing process can save taxpayers from unnecessary legal and financial stress.
If you have missed reporting income or filing returns in the past, acting early and filing ITR-U correctly is the smartest move toward long-term tax compliance.