Central Board of Direct Taxes (CBDT) has issued Notification No. 49/2025 dated 19th May 2025, introducing significant updates to the ITR-U (Updated Income Tax Return). Under the amended rules, the time limit for filing ITR-U has been extended to 48 months from the end of the relevant assessment year, as per the Finance Act, 2025. Additional tax applies for delayed filings: 60% for submissions in the third year and 70% in the fourth year. Amendments to Section 139(8A) restrict the filing of ITR-U if a notice under Section 148A is issued after 36 months. However, if subsequent orders under Section 148A(3) determine no valid case for such notice, taxpayers may file ITR-U within the extended 48-month window. Section 140B has also been revised to reflect the additional tax liabilities for filings within the extended timeline. Corresponding changes have been made to Rule 12AC, updating the ITR-U format in the Income-tax Rules, 1962.
Key updates to ITR-U vide CBDT Notification No. 49/2025 dated 19.05.2025.
- Time Limit Extended to 48 months via Finance Act, 2025.
- Additional Tax Payable:
- Filing in 3rd year: Additional income tax of 60%.
- Filing in 4th year: Additional income tax of 70%.
- Section 139(8A) amended: No ITR U can be filed if notice u/s 148A (show-cause notice) issued after 36 months from the end of the relevant A.Y. However, later if 148A(3) order passed saying – not a valid case for notice u/s 148, then ITR U can be filed within 48 months from the end of relevant A.Y.
- Section 140B Amended to prescribe additional income-tax payable for the extended timelines.
- Rule 12AC Amended accordingly to reflect these changes
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 49/2025-Income Tax | Dated: 19th May, 2025
G.S.R. 322(E).—In exercise of the powers conferred by sub-section (8A) of section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. Short title and commencement. — (1) These rules may be called the Income-tax (Nineteenth Amendment) Rules, 2025.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962, in Appendix-II, for Form ITR U, the following Form ITR-U (ITR for updated return) shall be substituted, namely: —
[F. No. 370142/20/2025-TPL]
PRADEEP SHARMA, Dy. Secy., Tax Policy and Legislation
Note:- The principal rules were published in the Gazette of India, Extraordinary, part II, Section 3, sub-section (ii) vide number S.O. 969(E), dated the 26th March, 1962 and was last amended vide number GSR 303(E), dated the 09th May, 2025.
