ITR e-filing:
CBDT enables ITR-U filing via ITR-3 and ITR-4 forms; here's who needs to file it and why
Aug 18, 2025
Synopsis
The Central Board of Direct Taxes has made updated Income Tax Return filing easier. Taxpayers can now use ITR-3 and ITR-4 forms on the e-filing portal. The deadline to file an updated return is now 48 months from the end of the assessment year. This allows people to correct errors in previous filings by paying additional taxes.
The Central Board of Direct Taxes (CBDT) has enabled updated income tax return (ITR-U) filing via ITR-3 and ITR-4 forms on the e-filing ITR portal for AY 2021-22 and 2022-23. This ITR-U return via ITR-3 and ITR-4 forms can also be filed using the respective ITR form’s offline Excel utilities.
As per Finance Act, 2025, taxpayers now have up to 48 months from the end of the applicable assessment year to file an updated return under Section 139 (8A) of the Income Tax Act, according to the Union Budget 2025. Even if they did not file a return or filed it incorrectly, the extended period will enable people to repair mistakes or omissions in their prior filings by paying more taxes.
What is an Updated Income Tax Return (ITR-U)?
With an objective to reduce litigation, ITR-U provides an opportunity for voluntary compliance to taxpayers to rectify errors/ omissions.
In Budget 2025,he deadline to file updated income tax return (ITR-U)_ had been extended from 24 months to 48 months from the end of the relevant assessment year (AY).
Who needs to file ITR 3 form?
Chartered Accountant Abhishek Soni, CEO & Co-founder of Tax2win, says, ITR-U has to be filed in the same form that a taxpayer is otherwise eligible for.
Abhishek Soni further adds, “ITR 3 can be filed by individuals and HUFs having income from business or profession. Those having salary/pension, house property, capital gains, or other income along with business/professional income.”
Who needs to file ITR-4 form (Sugam)?
Soni says “Resident individuals, HUFs, and firms (other than LLPs) with total income up to Rs 50 lakh.Those having income from presumptive business/profession u/s 44AD, 44ADA, or 44AE. Can also include salary/pension, one house property, and other income (like interest) within the Rs 50 lakh limit.”
Who needs to file ITR-U?
Income tax rules specify the conditions under which a taxpayer can file the updated return. A taxpayer can file ITR-U even if they have filed an ITR in the relevant assessment year. If the ITR has been filed in the relevant assessment year, the taxpayer is required to provide the acknowledgement number of the original ITR.
An updated return can be filed by any person within 48 months from the end of the relevant assessment year, whether or not an original, revised or belated return has been furnished under section 139 for such AY.
Who cannot file ITR-U?
Updated return cannot be filed if such return:
Is a Nil return or a return of a loss or
Has the effect of decreasing the total tax liability determined on the basis of return furnished for the relevant AY or
Results in refund or increases the refund due on the basis of return furnished for the relevant assessment year.
A taxpayer cannot file an updated return in case of search and seizure or case where any prosecution proceedings have been initiated.
Last date to file ITR-U
According to income tax rules, the last date to file ITR-U is 48 months from the end of the relevant fiscal year. Hence, for AY 2025-26, the last date to file ITR-U is March 31, 2030.
Penalty applicable on filing ITR-U
A penalty applies to filing an updated return using ITR-U, depending on how quickly the ITR has been filed.
[The Economic Times]
