Can I file ITR for Last 3 Years now?

If you're wondering, "Can I file ITR for last 3 years now?" the answer is a yes! It's a common scenario: the income tax return (ITR) deadline passes, and you realize you've missed it. If you're worrying about the consequences, there's good news. You can still file your ITR for the last three years using the ITR-U form. This opportunity allows taxpayers to rectify missed or incorrect filings and stay compliant with tax regulations. In this article, we'll guide you through the process of using the ITR-U form, providing step-by-step instructions to ensure you gather the necessary documents and file your returns correctly, helping you avoid potential penalties. Looking to file your ITR for last 3 years? Let the experts at IndiaFilings guide you through the process. [shortcode_102]

ITR Filing Deadlines

The due date for filing ITR for individuals usually falls on July 31st of the assessment year. For businesses requiring an audit, the deadline is generally October 31st. Filing ITR on time ensures compliance and avoids penalties, but what happens if you miss these deadlines? Read our article on 10 Benefits of Filing Income Tax Return (ITR)

Belated Returns

If you miss the original deadline, the Income Tax Department allows you to file a belated return. As per the rules, a belated return can be filed anytime before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. For example, for the financial year 2023-24 (assessment year 2024-25), a belated return can be filed until March 31, 2025.

Revised Returns

In case you discover any mistakes or omissions in your filed ITR, you can correct them by filing a revised return. A revised return can be filed within the same timelines as a belated return, i.e., before the end of the relevant assessment year.

Filing ITR for the Last 3 Years

While the belated and revised return provisions are helpful, they are restricted to the immediate past assessment year. What if you need to file returns for multiple previous years, say the last three years? This is where the concept of updated returns (ITR-U) comes into play.

ITR-U: The Updated Income Tax Return

ITR-U, or Updated Income Tax Return, is a form introduced by the government in the Union Budget 2022. It allows taxpayers to correct mistakes or omit errors in their previously filed income tax returns up to two years from the end of the relevant assessment year. This form serves as a lifeline for those who either missed filing their income tax returns or made errors and inaccurate entries. Under Section 139(8A) of the Income Tax Act, taxpayers are given the opportunity to update their returns within 24 months from the end of the assessment year in which the original ITR was filed.

For example, for the Assessment Year (AY) 2023-24, you can file an ITR-U after the close of the assessment year (i.e., after March 31, 2024), but you must do so by March 31, 2026.
The ITR-U can be filed regardless of whether the original return was filed on time, belatedly, or revised, or even if it was not filed at all, within two years of the end of the relevant assessment year.

Download Form ITR-U

To file ITR for last 3 years using Form ITR-U, you can download the form from the official Income Tax Department website.We have also attached here for ready reference. [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2024/07/ITR_U.pdf"]

Time Limit for Filing ITR-U for the Last 3 Years

The deadline for filing ITR-U is 24 months from the end of the relevant assessment year. For example:

For Assessment Year (AY) 2022-23, the last permissible date to file ITR-U is March 31, 2025.
For returns concerning AY 2024-25, the deadline to submit ITR-U is March 31, 2027.

Additional Tax When Filing ITR for the Last 3 Years

When filing an updated Income Tax Return (ITR) for the last three years using Form ITR-U, you may be subject to additional tax. This additional tax acts as an ITR penalty and varies depending on how late the ITR is filed relative to the end of the relevant assessment year:

If filed within 12 months from the end of the relevant assessment year, you will incur an additional tax of 25% on the tax and interest due.
If filed within 24 months from the end of the relevant assessment year, the additional tax increases to 50% of the tax and interest due.

How to file ITR for the last 3 years?

If you've overlooked filing your Income Tax Return (ITR) for the last three years, there's still an opportunity to rectify this. According to income tax regulations, you can file an updated return using Form ITR-U along with the corresponding updated version of the applicable ITR form (ITR 1 – 7). Here’s a step-by-step guide to help you through this process:

Determine the Correct Form

Identify the appropriate ITR form (1-7) is applicable to your financial situation for each of the three years. Each form caters to different types of income and taxpayer categories.

ITR Forms: File itr for last 3 years

Download the ITR Forms

Visit the official Income Tax Department website to download the appropriate ITR form for each of the years you missed.

Fill Out the Form

Complete the form with accurate information for each year. This includes personal details, income, deductions, and taxes paid.

Attach the ITR-U Form

Along with the regular ITR form, you'll need to fill out the ITR-U form, which is specifically designed for updating previously filed or unfiled returns.

Gather Necessary Documents

Begin by collecting all essential ITR Filing documents for each of the three years. This includes Form 16, Form 26AS, bank statements, and any other records related to your income and investments. These documents will provide the detailed information needed to accurately complete your ITR forms.

Calculate Taxes and Interest

Calculate any taxes owed along with interest for late filing if applicable. Use the online calculators available for accuracy.

Pay Due Taxes

If you owe taxes, make sure to pay them before submitting your returns. You can do this online through the e-payment facility on the Income Tax Department's website.

Submit Your Returns

File your returns online by uploading the filled forms and any relevant documentation on the e-filing portal.

Verify Your Returns

After submission, verify your returns through Aadhaar OTP, EVC, or DSC as per the norms set by the Income Tax Department. By adhering to these steps, you can successfully file your ITR for the past three years. Nonetheless, it is advisable to always file your ITR on time to prevent any penalties or interest charges.

Important Tips

Timeliness: Try to complete this process before the end of the 24-month period for the respective assessment year to avoid additional penalties.
Accuracy: Ensure all information is accurate to avoid further complications or the need for additional corrections.
Seek Assistance: If you find the process overwhelming, consider consulting a IndiaFilings tax professional for guidance.

Conclusion: Filing ITR for the Last Three Years

If you've missed filing ITR for last 3 years, you can still update your filings using the ITR-U form, introduced in the Union Budget 2022. This form allows you to correct past returns up to two years after the relevant assessment year, helping you avoid penalties and stay compliant. It's important to follow the necessary steps carefully and pay any additional taxes if you're filing late. Always aim for timely and accurate submissions to minimize complications. File your income tax on time with IndiaFilings to ensure compliance and avoid potential penalties. By using IndiaFilings, you can streamline the process, ensuring that your filings are accurate and submitted before the deadline. [shortcode_102]