Updated income tax return (ITR-U) window extended from two years to four years

The Union Budget 2025-26 proposed extending the time limit to file an updated income tax return for any assessment year from the existing two years to four years from the end of the relevant assessment year. The stated aim is to encourage voluntary compliance by letting taxpayers correct mistakes in an originally filed return on payment of additional tax rather than face penalty proceedings.

The additional tax payable rises with how late the updated return is filed; the rate slabs for the third and fourth years are not stated on the government page read here and are therefore not recorded.

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