If you have made a mistake while filing Income Tax Return (ITR) or have not shown your complete income, there is still a chance to correct it. For this you can use Updated Income Tax Return i.e. ITR-U. March 31 is near, so delay can lead to higher penalties and legal hassles. ITR-U has become especially important for FY 202425 (AY 202526), because now more leeway has been given in the tax system to correct old mistakes.
What is ITR-U?
ITR-U i.e. Updated Income Tax Return is a facility, which is available under Section 139(8A) of the Income Tax Act. Through this you can correct mistakes in previously filed returns, show missing income or update your ITR. If you could not file ITR on time, missed late filing or did not file revised return, you can still file ITR-U. In simple words, this is a second chance to reform taxes.
ITR filing timeline
- To understand ITR-U, it is important to know the complete timeline.
- Original ITR usually by 31st July
- Billed/Revised ITR till 31st December
- Both missed? Then ITR-U becomes the last chance
- ITR-U Deadline (FY 202425)
ITR-U can be filed up to 4 years (48 months) after the end of the assessment year. Last date for AY 202526 is 31 March 2030. But every year March 31 is important, because if there is a delay, additional tax increases.
What changed in Budget 2026?
The government has made some major changes in Budget 2026. Filing is allowed even during re-assessment. Now ITR-U can be filled even after receiving the notice, but 10% additional tax will have to be paid. Loss adjustment facility (from March 1, 2026): Earlier you could not adjust losses, now you can. Its purpose is that people should correct their mistakes and disputes should be reduced.
Who can file ITR-U?
- You can fill ITR-U if
- You did not file ITR
- showed less income
- Income shown in wrong head
- wrong tax rate imposed
- Want to adjust loss or depreciation
- Keep in mind: ITR-U can be filed only once in each assessment year
Who cannot file ITR-U?
- ITR-U cannot be filled in these cases.
- If you want to increase refund or reduce tax
- Nil or loss return (exemption now available in some cases)
- If a search or survey is going on against you
- If ITR-U has already been filed for the same year
- Simple: ITR-U is used only for paying additional tax, not for saving.
How much additional tax will have to be paid?
- Additional tax has to be paid on filing ITR-U
- 25% additional tax within 12 months
- 50% additional tax after 12 months
- Budget 2026 cases (re-assessment) 10% more
- Total Expenses = Tax + Interest + Additional Tax
How to fill ITR-U?
- You can fill it online
- Login to Income Tax E-Filing Portal
- Select Updated Return (ITR-U)
- Select assessment year (AY 202526)
- Explain the reason for updating the return
- Fill additional income and tax details
- pay tax and submit
Why is it important to file early?
- Although the deadline is till 2030, but delaying
- will have to pay more additional tax
- Scrutiny may increase
- There will be a danger of getting a notice
- Therefore, filing early provides less penalty and tension relief.
ITR-U gives the taxpayers the last chance to correct their mistakes. After Budget 2026, the rules have become a little easier, but compliance with the rules has also become stricter. If you have missed any income, rectify it now. Otherwise, big trouble may arise in future.