What is ITR-U and How it helps you Correct Income Tax Filing Mistakes

The Income Tax Return (ITR) deadline for individuals who don’t need an audit for the financial year 2024–25 (assessment year 2025–26) was September 16, 2025.

While most taxpayers filed their returns on time, some missed it — either due to last-minute portal issues or simple delay.

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If you’re one of them, there’s still hope. You can file your belated ITR by December 31, 2025, and fulfill your tax obligations without missing out entirely.

Made a Mistake in Your ITR? Use ITR-U to Fix It

Even taxpayers who filed on time sometimes discover mistakes in their returns — missing income details, incorrect deductions, or wrong TDS entries.

In such cases, the ITR-U (Updated Return) comes to the rescue.

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According to CA Shefali Mundra, Tax Expert at ClearTax, the ITR-U can be filed not only by those who made errors but also by those who missed filing their original or belated return altogether.

For instance, if you forgot to include interest income, capital gains, or freelance earnings, or claimed the wrong deductions or exemptions, filing an ITR-U helps you correct those errors and stay compliant.

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What You’ll Pay: Additional Tax, Interest & Penalties

When you update your ITR, you’ll need to pay any extra tax due because of the corrections, plus interest and penalties.

Here’s how the penalty works:

Filed within 12 months: Pay 25% extra (tax + interest)

Filed after 12 but before 24 months: Pay 50% extra

Filed after 24 but before 36 months: Pay 60% extra

Filed after 36 but before 48 months: Pay 70% extra

The longer you delay, the higher your penalty amount will be.

What Can You Fix Using ITR-U?

You can correct several types of mistakes through ITR-U, such as:

Missing income from interest, capital gains, or freelance work

Incorrect deductions or exemptions under sections like 80C or 80D

Wrong TDS/TCS details or incorrect income head selection

Personal detail errors, like name, PAN, or bank account info

However, you cannot use ITR-U to:

Reduce your tax liability

Claim additional refunds

File when under scrutiny, reassessment, or search proceedings

Also, if you’ve already filed an updated return for the same year, you can’t file another.

Final Take

The ITR-U gives taxpayers a second chance to correct mistakes and stay on the right side of the law.

If you missed the deadline or made an error, don’t wait — review your filings and update them before it’s too late.

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