The Income Tax Department released Excel utilities for ITR-3 and ITR-4 for the assessment years 2021–22 and 2022–23 on August 16 to facilitate the filing of updated returns. This comes after comparable utilities for ITR-1 and ITR-2 were previously released. This makes it easier for people and companies to update or amend their tax returns for those years.

Extended Return Filing Window Update

For taxpayers who might not be aware, the government implemented a program in 2022 that permits them to submit an amended return within 24 months of the conclusion of the applicable assessment year. This time frame has been expanded to 48 months beginning in 2025, which is a major change that will give taxpayers even more freedom to update or correct their tax returns.

What does an ITR Updated Return mean?

Even after the standard deadlines have passed, taxpayers can choose to amend or revise their income tax return by filing an updated return. By paying any additional taxes due, taxpayers can file an updated return in accordance with sections 139(8A) and 140B of the Income Tax Act. This clause gives taxpayers up to four years following the assessment year to make the required adjustments, which helps to improve compliance and reduce disputes.

Updated returns can now be filed up to four years later

According to a report, taxpayers can now file an updated return up to four years after the end of the relevant assessment year. For example, an individual can file an updated return for the assessment year 2025–26 at any time until March 31, 2030, even if they miss both the original deadline of July 31 (which was extended to September 15 this year) and the belated or revised return deadline of December 31.

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When Is It Possible to File an Updated ITR?

There are various circumstances in which an amended income tax return may be filed, including:

A. If your return wasn't filed sooner, or

B. If you filed it but need to make changes, such as

• Declaring unreported revenue
• The head under which income was declared has been corrected
• Minimizing losses that are carried forward
• Unabsorbed depreciation adjustment
• Revising a tax credit that was claimed under 115JB or 115JC
• Correcting a tax rate that was applied incorrectly

Are You Able to File an Updated ITR in Certain Circumstances?

In these circumstances, you are unable to file an updated return:

• If your initial return indicates a loss or no tax liability (nil return),
• If your total tax liability would be reduced by filing the amended return
• If it results in a refund or raises the amount of the refund
• If there has been a search and seizure in your case, or if the prosecution has begun

These guidelines make sure that amended returns aren't used to avoid taxes or claim more refunds, but rather only to correct additional tax payments.

It's crucial to keep in mind that taxpayers are unable to switch between the previous and current tax regimes when submitting an updated return. The tax regime you initially selected on your first return must be followed.