Extended Filing Period for Updated Income Tax Returns
The Income Tax department has introduced ITR-U, a provision allowing taxpayers to file updated tax returns within four years of the relevant assessment year. The Finance Act of 2025 extended this period from 24 to 48 months. Different additional tax rates apply based on the filing timeline, generating significant revenue.
- Country:
- India
The Income Tax department recently unveiled ITR-U, facilitating taxpayers in submitting updated returns within four years from the relevant assessment year.
The Finance Act of 2025 played a pivotal role in this change by extending the filing window from 24 months to 48 months.
Consequently, taxpayers face varying additional tax obligations, depending on their filing time, stimulating considerable revenue collection, with 90 lakh returns filed in the past three years alone.
(With inputs from agencies.)
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