CBDT Notifies Updated Return Filing Provisions (ITR-U)

CBDT Notifies Updated Return Filing Provisions (ITR-U) – Notification No. 49/2025 dated 19.05.2025

The Central Board of Direct Taxes (CBDT) has issued Notification No. 49/2025 on 19th May 2025, implementing key amendments under the Finance Act, 2025 related to filing of Updated Returns under Section 139(8A) of the Income-tax Act, 1961.

🔍 Key Highlights:

1. Extended Time Limit
   The time limit for filing an Updated Return (ITR-U) has been extended to 48 months from the end of the relevant assessment year (A.Y.).
2. Additional Tax Payable
   • Filing in the 3rd year (i.e., after 24 months but before 36 months): Additional tax of 60% of the due tax.
   • Filing in the 4th year (i.e., after 36 months but before 48 months): Additional tax of 70% of the due tax.
3. Amendment to Section 139(8A)
   An ITR-U cannot be filed if a notice under Section 148A (show-cause notice before reassessment) has been issued after 36 months from the end of the relevant A.Y.
   ➤ However, if the proceedings under Section 148A(3) conclude that issuance of notice under Section 148 is not warranted, the assessee may file an ITR-U within the 48-month window.
4. Amendment to Section 140B
   Provisions relating to the computation and payment of additional income-tax for extended filing timelines have been updated accordingly.
5. Rule 12AC Amended
   Rule 12AC of the Income-tax Rules, 1962, has been modified to align with the extended time limit and updated tax implications.

📘 Section 139(8A): Overview

Any person, whether or not a return has been previously filed under Section 139(1), (4), or (5), can file an Updated Return for a particular assessment year, within the prescribed time (now up to 48 months), provided the following conditions are met:

❌ Ineligible Cases for Filing ITR-U:

• Filing results in:
  • A loss,
  • A decrease in total tax liability, or
  • An increase in refund.
• An ITR-U has already been filed for the relevant A.Y.
• Any proceedings under the Act (assessment/reassessment/revision/recomputation) are pending or completed.
• Information is available with the Assessing Officer under the following laws and has been communicated to the assessee:
  • Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976
  • Prohibition of Benami Property Transactions Act, 1988
  • Prevention of Money Laundering Act, 2002
  • Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
• Information received from foreign jurisdictions under Section 90 or 90A and shared with the assessee.
• Prosecution proceedings under Chapter XXII have been initiated for the relevant A.Y.
• The person is notified as ineligible by CBDT.

🔎 Restrictions in Case of Search, Seizure, or Survey:

An Updated Return cannot be filed if, for the relevant A.Y. or the two preceding A.Y.s:

• A search has been initiated under Section 132.
• Books, documents, or assets have been requisitioned under Section 132A.
• A survey (other than under Section 133A(2A)) has been conducted.
• Notices indicate that seized or requisitioned material pertains to the assessee.

📄 Compliance Requirement:

Filing of ITR-U under Section 139(8A) must be accompanied by proof of payment of tax, as specified under Section 140B, including:

• Tax on additional income,
• Applicable interest and fees,
• Additional tax (25%, 50%, 60%, or 70% depending on the year of filing).

Also Read:

1. Recommendations of the 55th Meeting of the GST Council
2. Changes in GST and Income Tax during the Financial Year 2024-25
3. TDS and TCS provisions applicable from April 1, 2025
4. Rationalizing TDS: A Deep Dive into Budget 2025’s Proposals

Go To Memorandum

Go To Finance Bill 2025

Read More on Union Budget 2025

CA Cult YouTube: 
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2. Calculation of Income Tax FY 2024-25 | Old vs New Regime | For Salaried Employees

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Also Read: New Income-tax Bill 2025 Navigator