Here’s a structured table summarizing the extension of time limits for filing Updated Tax Returns (ITR-U) under the Income Tax Act, 1961, as amended by the Finance Bill 2025:
Updated Tax Return (ITR-U) Time Limits and Additional Tax Liability
| TIME PERIOD FOR FILING ITR-U | EXTENDED DEADLINE | ADDITIONAL TAX PAYABLE | KEY CONDITIONS |
| Within 12 months from the end of the relevant Assessment Year (AY) | Up to 1 year from original due date (e.g., 31 July 2026 for FY 2024-25 AY 2025-26) | 25% of (tax + interest) | Applies to missed income disclosures or errors . |
| Within 24 months from the end of the AY | Up to 2 years from original due date | 50% of (tax + interest) | Must disclose previously omitted income . |
| Within 36 months from the end of the AY | Up to 3 years from original due date | 60% of (tax + interest) | Excludes cases under scrutiny or audit . |
| Within 48 months (new limit) from the end of the AY | Up to 4 years from original due date (e.g., 31 March 2029 for FY 2024-25 AY 2025-26) | 70% of (tax + interest) | Introduced to encourage voluntary disclosures . |
Key Notes:
- Purpose: ITR-U allows taxpayers to correct omissions/discrepancies in original returns, such as unreported income or missed deductions 8.
- Exclusions: Cannot be filed if:
- The return is already under scrutiny, audit, or reassessment.
- To claim refunds or carry forward losses .
- Payment Deadline: Additional tax must be paid before filing ITR-U to avoid penalties
