How to File ITR-U Now Open: Update Your Past ITR Mistakes for AY 2021–22 and 2022–23
Good news for taxpayers! If you made a mistake or missed declaring income in your previous income tax returns, now is your chance to fix it. The Income Tax Department has officially opened the window for filing Updated Returns (ITR-U) for Assessment Years (AY) 2021–22 and 2022–23.
This initiative, announced on 30th July 2025, aims to provide a second chance to taxpayers who want to correct errors or omissions in their past returns—without facing penalties or legal troubles.
In this blog, let’s understand what ITR-U is, who can file it, how to do it, and why this update matters for every honest taxpayer.
🧾 What is ITR-U?
ITR-U stands for “Updated Income Tax Return” under Section 139(8A) of the Income Tax Act. This provision allows taxpayers to revise or update their previously filed returns by declaring omitted income and paying additional tax, if applicable.
This return is different from a revised return or belated return. You can file ITR-U even if you didn’t file any return earlier or if you already filed but made errors or underreported income.
📌 Key Highlights of ITR-U Update for AY 2021–22 & 2022–23
- ✅ ITR-U Filing Now Enabled: You can now file updated returns for AY 2021–22 and AY 2022–23.
- ✅ Forms Available: Only ITR-1 and ITR-2 are currently available for ITR-U filing.
- ✅ Filing Deadline: You can file an updated return within 24 months from the end of the relevant assessment year.
- ✅ e-Filing Mode: This facility is available through the Income Tax e-Filing Portal.
🧑💼 Who Can File an ITR-U?
You can file an Updated Return (ITR-U) if:
- You did not file your ITR at all earlier.
- You filed the return but missed some income.
- You want to declare additional income to avoid legal action.
- You want to correct wrong heads of income, such as reporting salary instead of capital gains.
However, you cannot file ITR-U if:
- There is a pending or completed assessment for that year.
- A search or survey was conducted under Sections 132/133A.
- You’re claiming a refund or reducing your tax liability.
💡 Why Filing ITR-U is Important
- 🛡 Avoid Penalty: ITR-U allows you to comply voluntarily before the tax department initiates action.
- 💰 Stay Tax Compliant: Declaring all sources of income (interest, dividends, side business) avoids future notices.
- 📄 Clean Tax History: Helpful for visa applications, business loans, and government tenders.
- 🧾 Eligible for Future Refunds or Adjustments: A clean record ensures no future hindrance in refund processing.
📑 How to File ITR-U – Step-by-Step Guide
- ✅ Login to incometax.gov.in
- Navigate to e-File > Income Tax Forms > File Income Tax Forms.
- Choose ‘ITR-U’ under Section 139(8A).
- Select the assessment year (2021–22 or 2022–23).
- Fill in the additional income you want to declare.
- Pay additional tax, interest and late fees, if any.
- Submit the return online using Aadhaar OTP or DSC.
- Download and save the acknowledgement for your records.
💸 Additional Tax & Interest
- You’ll need to pay 25% extra on the tax + interest if filing within 12 months of the assessment year.
- If filing in the 13th to 24th month, the penalty increases to 50%.
For example:
If your extra tax liability is ₹10,000 and you are filing in July 2025 for AY 2021–22 (which ended in March 2022), you’ll pay an additional ₹5,000 (50%).
🚫 Common Mistakes to Avoid
- ❌ Not reporting small incomes like interest from savings account.
- ❌ Using incorrect PAN or assessment year.
- ❌ Forgetting to check for pending tax liabilities.
- ❌ Not verifying the return after submission.
📣 Final Words
The ITR-U facility is a great opportunity to come clean and fix past mistakes without harsh consequences. Whether you missed declaring stock profits, freelance income, or forgot to file your return at all — now is the time to correct it.
The government has taken a taxpayer-friendly step to encourage voluntary compliance while boosting transparency.
💬 Need Help?
If you’re unsure about whether to file ITR-U, how to calculate additional tax, or which form applies to you—our team at TAXGYANY can assist you with filing, compliance checks, and advisory.
📞 Call: 730 430 7888
🌐 Visit: www.taxgyany.com
📧 Email: info@taxgyany.com
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