Categories: Income tax Return

Overview on ITR-U: Updated Income Tax Return (Sec 139(8A))

What is an Updated Income Tax Return (ITR-U) ?

A facility allowing taxpayers to rectify mistakes, disclose omitted income, or file returns if they missed the due date. Introduced to reduce litigation and promote voluntary compliance. Updated Income Tax Return (ITR-U) is a mechanism introduced to promote voluntary tax compliance and reduce litigation. It allows taxpayers to rectify mistakes, disclose omitted income, or file a belated return by paying the applicable additional tax, interest, and fees. But Updated Income Tax Return (ITR-U) cannot be filed in certain cases such as:

      • If it reduces the taxpayer’s overall tax liability.
      • If it results in a refund or enhances the existing refund.
      • For cases involving search, survey, or pending assessments.

Timelines for Filing ITR-U :

An updated return can be filed within 48 months (4 years) from the end of the relevant Assessment Year (AY). Example: For AY 2025-26 (FY 2024-25), an updated return can be filed up to March 31, 2030.  taxpayers have more flexibility to ensure accuracy in their filings and avoid penal consequences.

When Can Taxpayer can File ITR-U? :

In the following case ITR U can be file

  • Missed the original filing deadline.
  • Need to correct errors or omissions.
  • Forgot to disclose certain income.
  • Misreported income in earlier filings.

What are the Additional Tax Liability under ITR-U?

As per Section 139(8A) of the Income Tax Act, 1961 (amended via Finance Act, 2025), ITR-U is a second chance for taxpayers to come clean on undisclosed or misreported income by paying extra tax. It’s a compliance opportunity, not a tool to reduce tax liability or claim extra refunds Taxpayer can filing ITR-U requires payment of additional tax:

    • If filed within 12–24 months:  Additional 25% of tax & interest.
    • If filed within 24–48 months : Additional 50% of tax & interest.

Updated Income Tax Return -ITR-U Filing Enabled via ITR-3 & ITR-4 : The Central Board of Direct Taxes (CBDT) has now enabled filing of Updated Income Tax Returns (ITR-U) through ITR-3 and ITR-4 forms on the e-filing portal for Assessment Year  2021-22 and Assessment Year 2022-23. Taxpayers can also file ITR-U using the offline Excel utilities of the respective forms.

Restrictions: When You Cannot File ITR-U :

You cannot file ITR-U if you are:

  • Claiming or increasing a refund.
  • Reducing tax liability already declared.
  • Reporting/carrying forward losses.
  • Under assessment, reassessment, or revision proceedings.
  • Subject to a survey (Sec 133A) or search (Sec 132).
  • Where accounts/assets/documents are seized (Sec 132A).
  • If an ITR-U has already been filed once for the same AY.

Extended Time Limit under Finance Act, 2025 :

As per Section 139(8A) of the Income Tax Act, 1961 (amended via Finance Act, 2025), taxpayers now have up to 48 months from the end of the relevant assessment year to file an Updated Return. This extension (earlier 24 months) gives taxpayers additional time to:

      • File a return if not filed earlier.
      • Correct errors or omissions in previously filed returns.
      • Regularize income by paying additional taxes, thereby avoiding future disputes.

The Hidden Benefits of Filing Your ITR Late

  • A noble chance to contribute at least INR 5,000 extra towards nation-building.

  • Freedom from the “burden” of carrying forward your losses — who needs them anyway?

  • Liberty to file your return whenever your heart desires.

  • Absolute peace of mind during festivals and holidays — no tax stress to disturb the fun.

  • No more waiting in long queues at your CA’s office — because you’re filing after the rush!

  • Relief from the age-old dilemma: Old Regime vs New Regime.

  • A guaranteed escape from portal crashes and website glitches (since you’re filing after the crowd).

  • A tension-free CA who can now handle your return at leisure.

  • And finally, by paying extra tax, penalty, and interest, you proudly showcase a higher level of patriotism than ordinary taxpayers.

Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

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