Filing Updated ITR? Take Advantage Of This Massive Tax Benefit, Check Details

There is an important update for taxpayers who have noticed any errors or mismatches in their income tax returns (ITR) filed in 2024. The March 31 deadline, which marks the end of the financial year, is a crucial date to correct your ITRs.

The Income Tax Department (ITD) recently reminded the taxpayers again to file their updated ITRS for the assessment year 2023-24 by March 31, 2025, to avail the benefit of a 25 per cent lower additional tax and interest.

ITD notified this reminder in a post on social media platform X (formerly called Twitter). It stated:

“Kind Attention Taxpayers! Please file Updated ITR for AY 2023-2024 by March 31st, 2025 (If applicable) to avail lower additional tax of 25% and Interest. Don’t delay, file today!”

What is an Updated ITR?

ITR-U or Updated Income Tax Return allows you to correct errors or omissions in a previously filed ITR. The concept of updated returns was introduced by the government in the Union Budget 2022.

Taxpayers should know that even though they can’t file belated or revised ITRs after 31st December of the AY, an updated return (using the UTR-U form) allows them to correct some minor errors from January 1st to March 31st.

The updated returns facility doesn’t allow you to reduce the due taxes, claim refunds, or change any losses.

ITR-U: Key Change Announced In Budget 2025

Previously, the taxpayers were allowed to file their ITR-U within two years from the end of the relevant assessment year. However, this provision was changed in Budget 2025.

Now, the deadline for taxpayers to file ITR-U has been extended from two years to four years from the end of the relevant assessment year.

For taxpayers, this means more time to update their tax filings and correct any mistakes in the returns. The aim is to push voluntary tax compliance from taxpayers and create an efficient taxing system.

The last date for you to file your updated returns for the financial year 2023-24 (AY 2024-25) would be March 31st 2027.

However, if you need to update any returns for AY 2022-23, 31st March 2025 would be your last date.