New Delhi: Taxpayers can file their updated return (ITR-U) for the assessment year (AY) 2022–23 or financial year (FY) 2021–22 up to March 31, 2025, if they want to revise their earlier income tax returns. At the same time, the updated return can be filed at any time, but it can only be filed two years from the end of the relevant assessment year.
This facility The provision to file an updated return was included. This was made possible by the provisions outlined in the Finance Act 2022. Finance Minister Nirmala Sitharaman announced this facility to file an updated return during the budget session. It provides taxpayers an opportunity to correct mistakes or omissions in their previously filed tax returns while conforming with tax laws.
The purpose of the updated return facility
ONE: Bring back the Updated Return (ITR-U)
Reduce tax-related litigation—When taxpayers underreport income or evade taxes, tax agencies frequently initiate extensive litigation. The government wants to reduce disputes between taxpayers and tax authorities but still allows taxpayers the opportunity to voluntarily amend their returns and pay tax due.
Encourage voluntary tax compliance—The provision allows taxpayers to disclose unpaid income and pay overdue taxes without facing criminal prosecution.
The deadline for filing the updated return was a maximum of two years. However, the Union Budget 2025 extended this window by 6 months, compared to the previous 12 and 24 months. The government extended these windows to 48 months, or four years, to give taxpayers more time to correct their tax filings.
Who Can File a Revised Return?
Taxpayers need to file an updated return for any financial year—be it FY 2021-22 or FY 2022-23. The due date for filing the updated return for FY 2021-22, however, is March 31, 2025.
With some very limited exceptions, most taxpayers can file an updated return. Importantly, even those who had originally filed a loss return under Section 139(3) have the option to file a revised return. Conversely, you cannot file an updated return to report losses or set them off going forward.
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