New Delhi: Missed filing your tax return or made an error in the past few years? Don’t worry there’s good news. The Income Tax Department is now giving taxpayers a chance to fix mistakes or file missed returns for previous years. As announced on July 30, 2025, you can now file Updated Returns for Assessment Years 2021-22 and 2022-23 under ITR-1 and ITR-2.

Understanding ITR-U

ITR-U is a special form introduced in 2022 that gives taxpayers a second chance to set things right. Whether you missed filing your return, forgot to report some income, or made a mistake, ITR-U lets you update your return. Following the Union Budget 2025, taxpayers now have up to 48 months from the end of the relevant assessment year to file an updated return—twice the earlier deadline of 24 months.

Who Is Eligible to File ITR-U?

– You missed filing your original or belated return

– You made mistakes while reporting your income

– You selected the wrong head of income

– You want to reduce unclaimed depreciation or tax credits

– You owe additional tax due to income you forgot to report

Updated ITR Deadlines

If you missed filing or need to fix returns for AY 2021-22 or AY 2022-23, don’t worry—the 48-month window is still open. For the latest AY 2025-26 (FY 2024-25), you have time until March 31, 2030 to file your updated return.

How Much Extra Tax Will You Pay?

Filing an updated return comes with an extra cost. Along with your regular tax and interest, you’ll need to pay an additional percentage based on how late you file:

Within 12 months of the relevant assessment year: Pay 25 per cent extra

– Between 12–24 months: Pay 50 per cent extra

– Between 24–36 months: Pay 60 per cent extra

– Between 36–48 months: Pay 70 per cent extra