ITR filing for Last 3 years
File your Income tax return for last 3 years all in 1 day to apply for loan or Visa or pay any missed tax, etc
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Filing your income tax return is essentially the process of reporting your annual income from all sources to the government for the financial year, which spans from April 1 to March 31. ITR includes details of your income, tax liabilities, and any refunds you may be eligible for. The deadline for filing your ITR is typically 31st July each year. In this blog, we will explore whether ITR filing for last 3 years is possible now.
Additionally, we will cover what is updated ITR, who are eligible to file, time limit to file updated ITR, consequences of missing the original deadlines and the process for late filings, including penalties and interest charges. If you are unsure about your eligibility or the procedures for filing backdated ITRs, our experts are here to guide you through the process.
Is ITR filing for last 3 years possible in 1 day?
Yes, it is possible but there are certain eligibility criteria which we will discuss next. The ITR form which are applicable are known as Updated ITR. In the coming section you will understand the time limit, penalties and how to file. But before that let’s consider a simple example for a individual.
Example 1– Say as on 31st May 2024 you want to apply for loan then you can file 3 years ITR in 1 day as follows-
- File Normal ITR for FY 23-24 without any penalty whose original due date is 31st July 2024
- File Updated ITR (ITR U) for FY 22-23 with penalty (Last date 31st March 2026)
- File Updated ITR (ITR U) for FY 21-22 with penalty (Last date 31st March 2025)
Example 2 – Say as on 30th November 2024 you want to apply for loan then you can file 3 years ITR in 1 day as follows-
- File Belated ITR for FY 23-24 with penalty whose due date is 31st December 2024
- File Updated ITR (ITR U) for FY 22-23 with penalty (Last date 31st March 2026)
- File Updated ITR (ITR U) for FY 21-22 with penalty (Last date 31st March 2025)
Example 3 – Say as on 15th January 2025 you want to apply for loan then you can file 3 years ITR in 1 day as follows-
- File Updated ITR for FY 23-24 with penalty (Last date is 31st March 2027)
- File Updated ITR (ITR U) for FY 22-23 with penalty (Last date 31st March 2026)
- File Updated ITR (ITR U) for FY 21-22 with penalty (Last date 31st March 2025)
Why is ITR filing for last 3 years requried?
- If you are applying for a visa, you will need ITR from the past 3 years.
- When applying for a home loan, banks typically require ITR from the last 3 years. Some banks may not accept ITR acknowledgments with the same date for loan processing. Hence one must confirm the same with bank before filing ITR.
- If you have failed to file or made inaccurate entries in your income tax returns resulting in higher tax, you can file ITR for the last 3 years all at once within a single year.
- The new concept of an updated return allows you to file an updated return if you are eligible and have missed the original due date.
What is an Updated ITR (ITR U)?
ITR-U is a ITR form introduced by the Income Tax Department that allows taxpayers to update their income tax returns u/s 139(8A) by rectifying errors or omissions. This form provides a window for making corrections to previously filed returns which can be original, revised or belated for up to two years from the end of the relevant assessment year.
Also even if you have not filed ITR then also you can file ITR U. ITR U is available from ITR 1 to ITR 7.
Who are eligible to file Updated ITR (ITR U)?
Here are detailed explanations of the situations that ITR-U can be used for:
Return Previously Not Filed: If a taxpayer missed filing their income tax return altogether for a particular assessment year, they can use ITR-U to submit the return. This is especially useful for those who realize their oversight after the original due date of 31st July or belated ITR due date of 31st December has passed.
Income Not Reported Correctly: Sometimes, taxpayers may discover that they did not report certain sources of income, either partially or entirely, in their original return. ITR-U enables them to correct these errors by including the omitted income, ensuring that their tax liability is accurately calculated.
Wrong Heads of Income Chosen: Taxpayers may inadvertently report income under the wrong heads (e.g., reporting salary income under business income). Using ITR-U, they can reclassify their income under the correct heads, which ensures the proper application of tax rates and deductions.
Reduction of Carried Forward Loss: If a taxpayer has claimed more carried forward losses than they are entitled to in their original return, they can use ITR-U to correct this. This is crucial for maintaining accurate records of losses that can be carried forward to future years for tax purposes.
Reduction of Unabsorbed Depreciation: Similar to carried forward losses, taxpayers might overstate unabsorbed depreciation in their initial return. ITR-U allows them to rectify this by reporting the correct amount, ensuring that depreciation calculations for subsequent years are accurate.
Reduction of Tax Credit u/s 115JB/115JC: Sections 115JB and 115JC deal with Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT), respectively. If a taxpayer has incorrectly claimed a higher tax credit under these sections, they can use ITR-U to reduce the claimed amount to the correct level, aligning with their actual MAT/AMT liability.
Wrong Rate of Tax: If the taxpayer has applied the wrong tax rate to their income in the original return, leading to an incorrect tax calculation, ITR-U can be used to correct this error. This ensures that the taxpayer pays the correct amount of tax according to the applicable tax slabs and rates.
Who are not eligible to file Updated ITR (ITR U)?
ITR-U provides taxpayers with a valuable opportunity to correct errors in their previously filed tax returns. However, there are specific conditions and limitations to consider. Here are detailed explanations of the scenarios where ITR-U cannot be used or has particular constraints:
- If an updated return is already filed
If it is a Return of Loss: If the original return filed was a return of loss, meaning the taxpayer reported losses for the assessment year, they cannot use ITR-U to amend this return to claim additional losses or if not filed earlier but now want to show loss.Â
If it has the Effect of Decreasing the Tax Liability or Increasing the Refund: ITR-U cannot be used if the corrections would result in a lower tax liability than originally reported or if it would lead to an increased refund. The primary purpose of ITR-U is to correct underreported income or other errors that increase the tax payable. It is not designed to benefit the taxpayer by reducing their tax dues or increasing their refund.
If any Assessment is Pending or Completed: If the taxpayer’s return is under scrutiny and the assessment is either pending or completed, they cannot file an updated return using ITR-U. This ensures that taxpayers do not use the updated return process to preempt or interfere with the assessment proceedings conducted by the tax authorities.
- If a search has been initiated under Section 132
- If books of Accounts or any other documents are called for by the Income Tax Department under section 132A.
- If the survey has been conducted under section 133A
Cannot claim refund: Taxpayers cannot claim any additional refunds through ITR-U. If the corrections in the updated return would lead to an increased refund, the updated return cannot be filed.Â
Updated return can be filed only once: Once an updated return is filed using ITR-U, it cannot be revised. Taxpayers are allowed only one opportunity to file an updated return for a specific assessment year. Any further errors discovered after filing the updated return cannot be rectified through another updated return.
Time limit to file Updated ITR (ITR U)?
The form allows ITR filing for up to 2 years from the end of the relevant assessment year. For example, if the assessment year is 2022-2023 (Financial year will be 2021-2022) , you can file an updated return using ITR-U until March 31, 2025.
What is the Penalty for Updated ITR (ITR U)?
Additional 25% of Tax and Interest Due: If you file your return within 1 year from the end of the relevant assessment year, you will incur a penalty of 25% on the additional tax and interest due on the income that was not reported originally.
Enhanced to 50% of Tax and Interest Due: If you file your return after 1 year but within 2 years from the end of the relevant assessment year, the penalty increases to 50% of the additional tax and interest due.
Interest is charged at 1% per month from the date of Original ITR filing due date. Additionally late filing fees u/s 234F is applicable of Rs. 1000 for taxable income between Rs. 2.5 lakhs and Rs. 5 lakhs and Rs. 5000 for taxable income above Rs. 5 lakhs.
Let us see an example
Let’s assume the following:
- Assessment Year: 2022-2023 (covering the financial year from April 1, 2021, to March 31, 2022).
- You initially missed reporting an income of ₹100,000.
- The tax rate applicable to your income is 30% (It can be 20% depending on where the additional income falls in your tax slab)
- The interest due under Section 234A for late filing is calculated as ₹2,000 (for simplicity, this example assumes a straightforward interest calculation. Actually it is 1% per month from due date of ITR).
Calculation of Penalties
Filing Within 1 Year (by March 31, 2024):
- Additional Tax Due: 30% of ₹100,000 = ₹30,000
- Interest Due: ₹2,000
- Total Tax and Interest Due: ₹30,000 + ₹2,000 = ₹32,000
- Penalty (25% of Total Due): 25% of ₹32,000 = ₹8,000
- Late filing fees u/s 234F: 5000 (assumed total income above Rs. 5 lakhs)
- Total Payable: ₹32,000 (Tax and Interest) + ₹8,000 (Penalty) + ₹5,000 (Late fees)= ₹45,000
Filing After 1 Year but Within 2 Years (by March 31, 2025):
- Additional Tax Due: 30% of ₹100,000 = ₹30,000
- Interest Due: ₹2,000
- Total Tax and Interest Due: ₹30,000 + ₹2,000 = ₹32,000
- Penalty (50% of Total Due): 50% of ₹32,000 = ₹16,000
- Late filing fees u/s 234F: 5000 (assumed total income above Rs. 5 lakhs)
- Total Payable: ₹32,000 (Tax and Interest) + ₹16,000 (Penalty) + ₹5,000 (Late fees)
- = ₹53,000
Example of Time limit and penalties for ITR U
| Â | Â | Â | Penalty / Additional Tax Payable | ||||
| Financial  Year | Assessment Year | Deadline for filing ITR-U | If Filed by 31.3.2023 | If Filed by 31.3.2024 | If Filed by 31.3.2025 | If Filed by 31.3.2026 | If Filed by 31.3.2027 |
| 2021-2022 | 2022-2023 | 31st March 2025 | 25% of the additional tax liability + Late filing fees | 25% of the additional tax liability + Late filing fees | 50% of the additional tax liability + Late filing fees | NA | NA |
| 2022-2023 | 2023-2024 | 31st March 2026 | NA | 25% of the additional tax liability + Late filing fees | 25% of the additional tax liability + Late filing fees | 50% of the additional tax liability + Late filing fees | NA |
| 2023-2024 | 2024-2025 | 31st March 2027 | NA | NA | 25% of the additional tax liability + Late filing fees | 25% of the additional tax liability + Late filing fees | 50% of the additional tax liability + Late filing fees |
Income tax slab for Individual below 60 years (Old Regime)
| Income | Tax rates |
| Less than Rs.2,50,000 | 0% |
| Rs.2,50,000 – Rs.5,00,000 | 5% |
| Rs.5,00,001 – Rs.10,00,000 | 20% |
| More than Rs.10,00,000 | 30% |
Income tax slab for Individual below 60 years (New Regime)
| Income | Tax rates |
| Less than Rs.3,00,000 | 0% |
| Rs.3,00,001 – Rs.6,00,000 | 5% |
| Rs.6,00,001 – Rs.9,00,000 | 10% |
| Rs.900,001 – Rs.12,00,000 | 15% |
| Rs.12,00,001 – Rs.15,00,000 | 20% |
| More than Rs.15,00,000 | 30% |
Income tax slab for Individual between 60 & 80 years
| Income | Tax rates |
| Less than Rs.3,00,000 | 0% |
| Rs.3,00,001 – Rs.5,00,000 | 5% |
| Rs.5,00,001 – Rs.10,00,000 | 20% |
| More than Rs.10,00,000 | 30% |
Income tax slab for Individual above 80 years
| Income | Tax rates |
| Less than Rs.5,00,000 | 0% |
| Rs.5,00,001 – Rs.10,00,000 | 20% |
| More than Rs.10,00,000 | 30% |
Choosing the Right ITR U Form
The appropriate income tax return (ITR) form depends on your income type and sources. Here’s a summary of the seven primary ITR forms:
ITR-1: For individuals with income from salary/pension, one house property, or other sources (excluding lottery or horse racing winnings), and total income less than ₹50 lakhs.Â
ITR-2: For individuals and Hindu Undivided Families (HUFs) with income from salary/pension, multiple house properties, investments, and other sources (including lottery or horse racing winnings).
ITR-3: For individuals and HUFs earning income from business or profession, along with other sources.
ITR-4: For individuals, HUFs, and firms (other than LLPs) with income under a presumptive taxation scheme and total income less than ₹50 lakhs.Â
ITR-5: For entities like Partnership firms, LLPs, AOPs, BOIs, and cooperative societies, excluding individuals, HUFs, and companies.
ITR-6: For companies, except those exempt from tax under charitable or religious trusts.Â
ITR-7: For individuals and entities required to file returns under specific sections, such as charitable trusts, political parties, research institutions, and news agencies.Â
How to download Updated ITR (ITR U)?
You can visit the income tax portal and go to download section them go to Income tax return and select the assessment year and at last the select appropriate ITR form and download the Excel Utility or visit this link directly.
How to file ITR for last 3 years?
If you haven’t filed your Income Tax Return (ITR) for the past three years, you can still do so by following these steps:
Download the Correct ITR Form: Visit the official website of the Income Tax Department and download the appropriate ITR form for the relevant assessment year. Ensure you select the form that matches your income source and taxpayer type.
Gather Required Documents: Collect all necessary documents such as Form 16, 26AS, bank statements, and other income-related records for each of the 3 years.
Complete Form Details: Fill in personal information, income details and tax payments for each year on the downloaded ITR form.
Calculate Tax Liability: Click on calculate tax to compute your tax liability for each year based on the information provided.
Clear Pending Taxes: If you have any outstanding tax dues for the past 3 years, ensure they are paid before filing the ITR. Payment can be made online via the Income Tax Department’s website.
Generate JSON File: After filling in all details and calculating taxes, generate a JSON file.
Upload and Submit ITR: Log in to the Income Tax portal, upload the generated JSON file, and submit the ITR form. Complete the process by sending the E-verification code using Aadhar OTP for authentication.
Conclusion
In conclusion, ITR filing for last 3 years is indeed possible, although with some effort and adherence to the prescribed procedures. By diligently following the outlined steps—downloading the correct forms, gathering necessary documents, accurately filling in details, computing tax liabilities, clearing any pending taxes, generating JSON files, and finally submitting the ITRs via the Income Tax portal—taxpayers can file Updated ITR. While it is preferable to file ITRs on time, the option to file retrospectively provides a valuable opportunity to rectify past omissions.
In case you still have any query or want to file ITR with CA assisstance then you can contact us at +91 9769647582
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