File updated ITR before March 31

Unreported income in returns filed earlier need to be disclosed

- SAIKAT NEOGI

TAXPAYERS MUST FILE their updated Income Tax Return (ITR-U) before March 31, 2025 to rectify omissions or misreporting. This will minimise penalties and additional tax liabilities or notices from the Income Tax Department (IT dept).

The updated return provision promotes voluntary compliance and provides an opportunity to rectify genuine mistakes, thereby reducing potential litigation. Any taxpayer is eligible to file an updated return under Section 139(8A), irrespective of whether they have previously submitted an original, revised, or belated return.

Report omissions, errors This provision applies in cases of omissions, errors, or incorrect statements in prior filings. Taxpayers can file ITR-U for FY22 (AY 2022-23), FY 23 (AY 2023-24) and FY24 (AY 2024-25) before March 31. Failure to do so within the deadline will result in a higher additional tax, which will vary based on the timeframe in which the return is filed.