ITR filing 2025: Taxpayers can file updated returns for FY22, FY23 before March 31

Filing an Income Tax Return (ITR) accurately is crucial to avoid penalties and ensure compliance with tax regulations. However, taxpayers may sometimes make errors or omissions while filing their returns. To address this issue, the Income Tax Department allows individuals and businesses to file updated returns under certain conditions. The deadline for updating ITRs for the financial years 2021-22 (FY22) and 2022-23 (FY23) is March 31, 2025. Taxpayers who have discrepancies in their filings should take this opportunity to correct them before the deadline.

Understanding the Updated Return Provision

The concept of an updated return was introduced in the Finance Act 2022 to promote voluntary compliance and reduce tax-related litigations. It allows taxpayers to correct their tax filings within two years from the end of the relevant assessment year. This provision is particularly useful for those who may have unintentionally omitted income details or reported incorrect tax calculations.

For example, if a taxpayer wants to file an updated return for Assessment Year (AY) 2022-23 (corresponding to FY 2021-22), they must do so by March 31, 2025. Similarly, for AY 2023-24 (corresponding to FY 2022-23), the deadline remains the same. This extension provides individuals and businesses with ample time to review and rectify any errors in their previously filed tax returns.

Who Can File an Updated Return?

Taxpayers eligible to file an updated return include:

• Individuals who missed reporting some income in their original ITR.
• Businesses that need to adjust their tax liabilities.
• Salaried employees who may have misreported deductions or exemptions.
• Freelancers or self-employed individuals who previously underreported their income.
• Taxpayers who filed their returns late and now need to make corrections.

However, it is important to note that filing an updated return is not allowed in certain scenarios.

Who Cannot File an Updated Return?

Taxpayers are ineligible to file an updated return in the following cases:

• If the revised ITR results in a lower tax liability or a higher refund.
• If the taxpayer is already under investigation or has received a tax notice.
• If tax authorities have conducted a survey or seizure of assets/documents.
• If the taxpayer has been found guilty of willful tax evasion.

These restrictions ensure that the provision is used for genuine corrections rather than for reducing tax burdens unlawfully.

Additional Tax on Updated Returns

Filing an updated return comes with a cost. The taxpayer must pay additional taxes, as per the provisions laid out in the Finance Act 2022. The penalties depend on the timing of the updated return filing:

• If an updated return is filed within 12 months from the end of the relevant assessment year, an additional 25% of the tax and interest must be paid.
• If filed after 12 months but within 24 months, the penalty increases to 50%.

These charges are levied to discourage taxpayers from delaying the correction process unnecessarily.

How to File an Updated Return?

Filing an updated return involves the following steps:

1. Log in to the Income Tax e-Filing Portal:

• Visit www.incometax.gov.in and log in with your credentials.

2. Select the Correct ITR Form:

• Based on your income category, choose the appropriate form. Our experts in Income Tax Filing Services in Delhi can help you with form selection.

3. Choose the 'Updated Return' Option:

• Under the 'File Income Tax Return' tab, select 'Updated Return (ITR-U).'

4. Enter the Revised Details:

• Correct any mistakes or omissions and update the required information.

5. Calculate Additional Tax Payable:

• The portal will compute the extra tax and interest payable. Ensure that the full payment is made before submission.

6. Submit the Updated Return:

• Verify your ITR using Aadhaar OTP or a digital signature certificate (DSC) and submit it.

7. Keep a Copy for Records:

• Download the acknowledgment receipt for future reference.

Importance of Filing Updated Returns

Filing an updated return ensures compliance with tax laws and helps avoid legal disputes. Some key benefits include:

• Avoiding penalties and interest accumulation.
• Rectifying past mistakes to maintain a clean tax record.
• Reducing the risk of scrutiny and tax audits.
• Ensuring accurate tax compliance.

To make the process seamless, taxpayers can seek professional assistance from an Income Tax Consultant in Delhi to ensure that their updated returns are filed correctly and on time.

Professional Assistance for Updated Return Filing

At Taxcrafted Solutions, we offer expert assistance in Income Tax Filing Assistance in Delhi for individuals and businesses. Our services include:

• Personal Tax Filing Services– Assistance with individual tax returns, ensuring accurate deductions and compliance.
• Business Tax Filing Services– Helping businesses manage tax obligations effectively.
• Tax Notice Services– Handling tax notices, rectifications, and reassessments.
• TDS Filing Services– Ensuring timely deduction and deposit of TDS.
• ITR-1 Return Services– Filing simple tax returns for salaried individuals.
• ITR-2 Return Services– For taxpayers with multiple sources of income.
• ITR-3 Return Services– Designed for professionals and business owners.
• ITR-4 Return Services– Suitable for presumptive taxation scheme filers.
• ITR-5 Return Experts– Filing returns for partnership firms, LLPs, and AOPs.
• ITR-6 Return Services– Corporate tax filing solutions.
• ITR-7 Return Services– For NGOs, trusts, and charitable institutions.

By seeking expert guidance, taxpayers can avoid errors, minimize penalties, and ensure that their tax returns comply with the latest tax laws and Income Tax Calendar 2025 deadlines.

Conclusion

The deadline to file an updated return for FY22 and FY23 is March 31, 2025. Taxpayers who have made errors in their previous ITR filings should take this opportunity to rectify them to avoid unnecessary penalties and legal issues. Understanding the eligibility, limitations, and additional tax implications is essential before proceeding with the updated return filing.

For professional guidance, contact Delhi Income Tax Experts at Taxcrafted Solutions. Our team specializes in income tax filing services in Delhi and ensures that your tax compliance remains hassle-free.

Don't wait until the last minute—file your updated return today and stay compliant with tax laws!