ITR-U (Updated Return)
Updated return u/s 139(8A) letting you fix or file missed returns up to 48 months after the assessment year, with 25–70% additional tax.
Definition
ITR-U is the 'updated return' under Section 139(8A), which lets a taxpayer voluntarily disclose income that was missed, correct errors, or file a return that was never filed at all — long after the normal, belated and revised return deadlines have passed. The Finance Act 2025 extended its window from 24 to 48 months from the end of the relevant assessment year, effective 1 April 2025. So during 2026 you can still file or update returns as far back as AY 2021-22 (within its 48-month window ending 31 March 2026 season limits) through AY 2025-26.
The price is an 'additional tax' on top of the tax and interest due, graded by delay: 25% if filed within 12 months of the end of the assessment year, 50% within 12-24 months, 60% within 24-36 months, and 70% within 36-48 months. It is filed on the e-filing portal using the ITR-U form together with the applicable ITR form for that year, and only one ITR-U is allowed per assessment year — there is no second chance to fix an ITR-U.
ITR-U cannot reduce your tax liability: you cannot use it to claim or increase a refund, declare or increase a loss, or file a nil return. It is also barred where a search under Section 132, requisition under 132A, or survey under 133A has taken place, or where assessment, reassessment or revision proceedings are pending or completed for that year. Filing ITR-U before the department finds the omission is the cheapest way to regularise missed income and avoid penalty and prosecution exposure.
Example
Having forgotten to report freelance income in his AY 2024-25 return, Karthik filed an ITR-U in July 2026, paying the tax plus 50% additional tax.
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Sources
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