ITR Deadline: How To File Updated Returns For AY 2023-24 Before March 31?

An important deadline is approaching for taxpayers, as the financial year 2024-25 (FY25) is going to end soon. The taxpayers can file the updated income tax return by Mar. 31 to avoid paying higher additional taxes.

The updated Income Tax Return (ITR-U) can be filed for the previous two financial years. The provision allows taxpayers to rectify errors, add disclosure of additional incomes and omissions.

However, Finance Minister Nirmala Sitharaman in Budget 2025 extended the ITR-U filing deadline to 48 months from the earlier 24 months.

The government announced the introduction of the ITR-U in the Finance Act 2022 to encourage voluntary disclosures and tax compliance.

The ITR-U can also be filed even if the taxpayers missed filing their original income tax returns. It’s important to note that the ITR-U can only be filed once for the relevant financial year and no deductions can be claimed in the updated ITR.

The additional tax liability, if any, will change depending on the ITR-U filing deadline. For instance, the taxpayers will be levied a 25% tax and interest due for filing updated returns for AY 2023-24 by Mar. 31. On the other hand, for ITR-U filings after Mar. 31, 2025, 50% of the tax and interest due will be charged.

The taxpayers filing updated ITR for AY 2022-23 by Mar. 31, 2025, will pay 50% of the additional tax amount and the accrued interest.

1. Visit the e-filing portal of the Income Tax Department.

2. Log in with Aadhaar, PAN, or other user ID.

3. After logging in, click on “e-File” and choose “File Income Tax Return”.

4. Select the assessment year.

5. You will have to choose the type of filing you want. Select “Updated Return under Section 139(8A)”.

6. Define your status as a taxpayer by selecting from options such as Individual, Hindu Undivided Family (HUF), Company, etc.

7. Enter information about your income, such as salary, profits from business, house property income, capital gains, etc. In case you are furnishing unreported or under-reported income, you need to provide supporting documents such as Form-16, bank statements, etc.

8. Update deductions you have claimed under Sections 80C and 80D of the Income Tax Act.

9.  Calculate the net taxable income after updating the deductions.

10. You can use the tax calculation tool on the portal to estimate your tax liability as per the revised income.

11. After revising details, if there is any additional tax due, you must pay that first before submitting the ITR-U. You can make the payment through net banking or other options on the e-filing portal.

12. Review all details before final submission.

13. You need to verify your submission through either Aadhaar OTP, Electronic Verification Code (EVC) generated from a bank account, or by sending the Income Tax Return-Verification (ITR-V) form to the Centralized Processing Centre (CPC) in Bengaluru.

14. Once the verification is complete, you will get an acknowledgement from the I-T Department. You must keep it safe for future reference.