ITR-U, or Updated Income Tax Return, is a form that allows taxpayers to rectify errors, omissions, or updates in their originally filed income tax returns.
Time Limit to file ITR U
It enables individuals to update their returns up to two years from the end of the relevant assessment year, providing them with a second chance to ensure accuracy and compliance with tax laws. Introduced under Section 139(8A) of the Income Tax Act, ITR-U serves as a rescue for those who have not filed their returns or have made inaccuracies in their filings.
Example: Mr. Rohit, a salaried individual, filed his original Income Tax Return for the Assessment Year 2024-25 (Financial Year 2023-24) on July 15, 2024. However, upon thorough review, he discovered an error in reporting his interest income from fixed deposits in Jan 2025, when he has no option to file revised return. Realizing his mistake, Mr. Sharma decides to rectify this error by filing an Updated Income Tax Return (ITR-U)
Now, let’s determine the time limit within which Mr. Rohit can file his ITR-U:
Original Filing Date: July 15, 2024 End of Relevant Assessment Year: March 31, 2025
Time Limit for Filing ITR-U is 2 years from the end of the relevant assessment year Calculation: End of Assessment year+ 2 years = 31 March 2025 + 2 years = March 31, 2027
Result: Mr. Rohit has until March 31, 2027, to file his Updated Income Tax Return for the Assessment Year 2024-25. This timeline allows him sufficient time to correct the error and ensure compliance with tax regulations.