Missed ITR for Years? ITR-U Can Fix Your Backlog

If you skipped filing income tax returns for past years, ITR-U lets you file updated returns up to 2 years late. But the longer you wait, the higher the extra tax you pay on top of what you owe.

Here's what happened: ITR-U (Updated Return) was introduced under Section 139(8A) of the Income Tax Act, allowing taxpayers to file or correct returns for up to 2 previous assessment years.. Filing within 12 months of the relevant assessment year attracts a 25% additional tax on your dues; filing between 12–24 months attracts a steep 50% extra charge.. ITR-U cannot be used to claim a refund or reduce existing tax liability — it only works if you have income to declare or an error to correct that increases your tax payable..

What you should do: Log in to the Income Tax e-filing portal (incometax.gov.in) and check your filing history under 'e-File > Income Tax Returns > View Filed Returns' to identify missing years.. Calculate your outstanding tax liability for missed years using a tax calculator before filing ITR-U, so you know exactly what additional 25% or 50% surcharge applies.. File ITR-U as early as possible — even this month — since each passing year moves you from the 25% penalty bracket into the costlier 50% bracket automatically..

If you have TDS already deducted by your employer for a missed year, ITR-U still helps you regularise the record — even if net tax owed is low — and avoids a future scrutiny notice.