File Last 3 Years ITR

Can you File ITRs for the Last 3 Years Now? 

Why ITR for 2-3 years required :

  • If you are applying for a VISA then ITR of past 2-3 years is required to apply for VISA.
  • Financial institutions typically require the last 2-3 years of Income Tax Returns (ITRs) when applying for a home loan, though some bank doesn’t consider the Same dated ITR Acknowledgement for Loan Processing. 
  • If you have failed or made inaccurate and false entries while filing their income tax returns

You can file an ITR for the last 3 years altogether in one go in a year. New Concept of updated return allows if you are eligible to file the updated return once you have surpassed the due date.

Now a person can file income tax return for 3 years

  1. Current Assessment Year (e.g. 2023-24), Previous Year ( e.g. FY 2022-23) –  Normal return till December 2023, thereafter it will also fall under updated return
  2. Previous Assessment Year (e.g. 2022-23), Previous Year (e.g.  FY 2021-22) – Updated Return
  3. Previous to Previous Assessment Year (e.g. 2021-22), Preceding Previous Year (e.g. FY 2020-21) – Updated Return

What is an Updated ITR (ITR U)?

As per Income Tax laws, the due date to file ITR u/s 139(1) is 31st July and belated return can be filed up to 31 December

New ITR has been introduced for those who have not filed their ITR or made inaccurate and false entries while filing their income tax returns.

ITR-U is a form that allows taxpayers to correct errors or omissions on their ITRs up to two years from the end of the relevant assessment year to update their return. E.g, for the assessment year 2021-22, an updated return can be filed by 31 March 2024 if the taxpayers have missed reporting some income.

Irrespective of whether the taxpayer has filed an original, belated, or revised ITR or has completely missed filing the ITR in a specific financial year.

Persons eligible to file Updated Return u/s 139(8A)

  • Return previously not filed
  • Income not reported correctly
  • Wrong heads of income chosen
  • Reduction of carried forward loss
  • Reduction of unabsorbed depreciation
  • Reduction of tax credit u/s 115JB/115JC
  • Wrong rate of tax

Persons not eligible to file Updated Return u/s 139(8A)

  • If it is Return of Loss.
  • If it has the effect of decreasing the tax liability or increasing the refund.
  • If any Assessment is pending or completed.
  • In updated return refund cannot claim.
  • Updated return can be filed only once and it is not possible to revise updated return.

What is the Time Limit to File the ITR-U?

The time limit to file an updated return u/s 139 (8A) is 24 months from the end of the relevant assessment year.
Hence, in the current financial year 2022-23, updated returns for AY 2020-21 and AY 2021-22 can be furnished.

For Example

Financial  Year : FY 2020-21

Assessment Year : AY 2021-22

Deadline for filing ITR-U : 31st March 2024

Penalty / Additional Tax Payable

  • If Filed by 31.3.2023
    • 25% of the additional tax liability + Late filing fees under section 234F
  • If Filed by 31.3.2024
    • 50% of the additional tax liability + Late filing fees under section 234F

Financial  Year : FY 2021-22

Assessment Year : AY 2021-22

Deadline for filing ITR-U : 31st March 2025

Penalty / Additional Tax Payable

  • If Filed by 31.3.2023
    • 25% of the additional tax liability + Late filing fees under section 234F
  • If Filed by 31.3.2024
    • 25% of the additional tax liability + Late filing fees under section 234F
  • If Filed by 31.3.2025
    • 50% of the additional tax liability + Late filing fees under section 234F

Financial  Year : FY 2022-23

Assessment Year : AY 2023-24

Deadline for filing ITR-U : 31st March 2026

Penalty / Additional Tax Payable

  • If Filed by 31.3.2023
    • –
  • If Filed by 31.3.2024
    • 25% of the additional tax liability + Late filing fees under section 234F
  • If Filed by 31.3.2025
    • 25% of the additional tax liability + Late filing fees under section 234F
  • If Filed by 31.3.2026
    • 50% of the additional tax liability + Late filing fees under section 234F
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