How to File Income Tax Returns for Previous Years – Explained Simply
Missed filing your Income Tax Return (ITR) last year or the year before that? Don’t worry—many people forget or get too busy. The good news is that the Income Tax Department understands this and gives you another chance to file your return, even after the deadline. This is where belated returns and ITR-U (Updated Return) come into the picture.
Can You File ITR for Previous Years?
Yes, you can!
Under Section 139(4) of the Income Tax Act, 1961, you are allowed to file a late return (called a belated return) for one previous assessment year.
For example, if you missed filing your return for the 2023–24 financial year (AY 2024–25), you can still file it in 2024—before December 31, 2024.
However, you’ll need to pay a late fee under Section 234F, and you might miss out on some tax benefits.
Want to File Even Older Returns? Try ITR-U:
If you want to file returns for more than one past year, then you can use the ITR-U form.
The Updated Return option was introduced in Budget 2022, and it allows you to file returns for the last two assessment years, besides the current one.
That means—currently—you can file ITRs for up to three financial years.
Important Things to Know Before Filing ITR-U:
Time Limit:
- You can file ITR-U within 24 months (2 years) from the end of the relevant assessment year.
- For example: For FY 2023–24 (AY 2024–25), you can file ITR-U till March 31, 2027.
Extra Taxes:
- If you file within 12 months – you pay 25% extra on the tax (plus interest).
- If you file between 12 and 24 months – you pay 50% extra (plus interest).
How to File ITR for Previous Years (Step-by-Step):
- Log In: Go to the Income Tax e-Filing portal and log in using your PAN. If you don’t have an account, you’ll need to register.
- Select Assessment Year: Choose the correct assessment year for which you missed filing. For example, if you missed FY 2022–23, your AY is 2023–24.
- Choose ITR-U Form: Go to the forms section, select ITR-U, and also choose the type of ITR form based on your income (like ITR-1, ITR-2, etc.).
- Fill in Income and Deductions: Enter your income details using Form 16 (if salaried) or other documents. Don’t forget to check Form 26AS to match the TDS. Claim deductions under sections like 80C, 80D, etc.
- Pay Penalty and Tax: After calculating your taxes, the system will show your total payable amount, including penalties under Section 234F and interest. Make the payment.
- Verify Your Return: Once submitted, verify it using Aadhaar OTP, bank account validation, or by sending a signed physical copy to CPC Bengaluru.
Restrictions: When You Can't File ITR-U:
You cannot use ITR-U if:
- You already filed and your return was audited or assessed.
- You are filing a nil return or want to reduce your tax amount.
- You were subject to a search or raid by the IT department.
- You are facing legal action under the Income Tax Act.
What If You Didn't File for Two or More Years?
Here’s what can happen:
- Heavy Penalties: Late filing fees can go up to ₹10,000 or more based on your income.
- Interest on Unpaid Tax: If you had unpaid tax, interest will be added under Sections 234A, 234B, and 234C.
- Lose Refunds: If you were supposed to get a refund, you might lose it—refunds can’t be claimed after a certain period.
- No Refunds via ITR-U: You can’t use ITR-U to claim or increase a refund. It’s only for declaring extra income or fixing mistakes—not for lowering taxes or getting money back.
- More Scrutiny: Repeatedly missing ITR filing can lead to IT department scrutiny, notices, and further questions.
- Legal Trouble: In serious cases involving large amounts of tax, you could face legal action or even jail under Section 276CC. This is rare but possible.
Conclusion:
Filing your ITR on time—even for previous years—is important. It helps you fix any mistakes, stay legally safe, and build a good financial record. Thanks to belated returns and the ITR-U form, you still have a second chance to stay on the right side of tax laws.
Disclaimer: This article is meant to create awareness and for educational purposes only. It does not give legal or financial advice or recommend any product.
