[FAQs] Updated Return of Income (ITR-U) – Eligibility | Forms | Penalties | Deadlines

This guide explains the rules for filing an updated return under Section 139(8A), including eligibility, restrictions and the applicable time limit. It covers updated returns for loss cases, filing after a notice under Section 148, additional tax rates and the use of Form ITR-U. It also clarifies when an updated return can be filed to report omitted income or correct an earlier return.

FAQ 1. Aman filed an ITR for the Assessment Year 2023-24 within the due date. On 13-05-2026, he found that he failed to report interest income in his ITR. Can he revise his ITR for AY 2023-24?

Section 139(5) allows a taxpayer to file a revised income return if he discovers an omission or error in the original return. For assessment year 2023-24, a revised return could be filed within 9 months from the end of the relevant previous year or before completion of the assessment, whichever is earlier; that is, till 31^st December, 2023, which has already expired.

Where an assessee missed the deadline to file the revised return or if there was no error or omission in the original return, Section 139(8A) allows filing of an updated return, which gives an assessee a longer duration to file the return of income. An updated return can be filed within 48 months from the end of the relevant assessment year (subject to certain conditions). An updated return can be filed, even after the expiry of the time limits specified for filing of the revised return, along with additional tax payable.

In the financial year 2026-27, a person can file an updated return for the assessment years 2022-23, 2023-24, 2024-25 and 2025-26.

(Read More: Updated Return of Income on taxmann.com/practice)

FAQ 2. Who is not eligible to file an updated return?

All taxpayers are eligible to file an updated return. However, such a return cannot be filed in the following circumstances:

(a) If an updated return is a return of a loss except where it has the effect of reducing the loss originally declared or converting the loss into an income.
(b) In case an updated return results in a lower tax liability.
(c) In case an updated return results in an increase in the refund.
(d) In case of a search initiated against the assessee.
(e) Where books of account or assets, etc., are requisitioned in case of the assessee.
(f) In case a survey is conducted against the assessee
(g) Where documents or assets seized or requisitioned in case of any other person belong to the assessee
(h) In case an updated return has already been filed
(i) In case the assessment is pending or completed
(j) In case AO has information about the assessee under the specified Acts
(k) In case AO has information about the assessee under DTAA or TIEA
(l) In case any prosecution proceeding is initiated or
(m) In case of a person or class of persons as notified by the CBDT.

However, an updated return can be filed in pursuance of notice of income escaping assessment under Section 148. Where an assessee chooses to file an updated return in pursuance of a Section 148 notice, the implications shall be as under:

(a)Such an updated return shall be furnished within the period specified in the notice.
(b) The assessee shall be precluded from filing a return in pursuance of the said notice in any other manner.
(c) Additional tax shall be increased further by 10% of tax and interest. Thus, the additional tax rate in this case shall be 35%, 60%, 70% and 80%, as against the normal additional tax rate of 25%, 50%, 60% and 70%, as the case may be.
(d) Additional income reported in an updated return filed pursuant to a notice under Section 148 shall not form the basis for imposing a penalty under Section 270A.

(Read More: Updated Return of Income on taxmann.com/practice)

FAQ 3. Can I update my return if my previous ITR was a loss return?

The Finance Act 20026 permitted the filing of an updated return if the original return was a return of loss and the updated return:

(a) Reduces the originally declared loss, or
(b) Converts the loss into income.

However, this exception is subject to the following conditions:

(a) Condition 1: Initial loss must have been sustained

The exception applies where a person has sustained a loss in the relevant tax year. Accordingly, the year for which the updated return is furnished must be a year in which the assessee has incurred a loss. The loss may arise under any head of income.

(b) Condition 2: Return of loss must have been filed

The assessee must have furnished a return of loss. A return of loss is a return in which the total income is a loss, not merely a return in which a loss arises under a particular head.

(c) Condition 3: Return of loss must have been filed within the due date

The return of loss must have been furnished within the due date allowed under Section 139(1). In other words, the assessee cannot file the updated return if the original return of loss was filed belatedly.

It may, however, be noted that if the assessee had originally filed a return within the due date showing positive income, but subsequently revised the return to declare a loss, the revised return replaces the original return. In such a case, the return would be treated as a return of loss filed within the prescribed time, and therefore, the updated return may be allowed.

The following table explains the situations in which the updated return can be or cannot be filed:

Status of original return	Position in updated return	Additional tax payable?	Can an updated return be filed?	Remarks
No return filed	Total income is a loss	No	No	Updated return cannot be filed because no earlier return of loss has been filed.
Return of loss	Loss increased in updated return	No	No	Updated return cannot be filed because it increases the loss originally declared.
Return filed with positive income	Income is converted into loss in updated return	No	No	Updated return cannot be filed as the original return was not a return of loss.
Return of loss	Loss reduced in updated return	No	Yes	Updated return can be filed as all conditions are fulfilled.
Return of loss	Loss is converted into income in updated return	Yes	Yes	Updated return can be filed as all conditions are fulfilled.
Return filed with income but loss under one head	Updated return reduces the loss under that head but total income remains positive	Yes	Yes	Updated return is permitted under general provisions as it increases total income.
Return of loss	Updated return reduces loss and also results in refund	No	No	Updated return cannot be filed as it increases the refund.
Return of loss filed after the due date	Updated return reduces loss	No	No	Updated return cannot be filed because the original return of loss was not filed within the due date specified under Section 139(1).

Read More Updated Return of Income on Taxmann.com/Practice

 

FAQ 4. Can I file an updated return after receiving a notice under Section 148?

The Finance Act 2026, w.e.f. 01-03-2026, has allowed the filing of an updated return even in pursuance of a notice under Section 148. Such an updated return shall be furnished within the period specified in the notice. Further, the assessee shall be precluded from filing a return pursuant to the said notice in any other manner. However, the assessee shall be liable to pay an additional tax of 10% of tax and interest where an updated return is filed in pursuance of a notice under Section 148. Thus, the additional tax rate in this case would be 35%, 60%, 70% and 80%, as against the normal additional tax rate of 25%, 50%, 60% and 70%, as the case may be. In such a situation, the additional income reported in an updated return filed pursuant to a notice under Section 148 shall not form the basis for imposing a penalty under Section 270A.

Where an assessee does not file an updated return in pursuance of a notice under Section 148 and instead files a regular return in response to such notice or does not file a return at all. In such cases, in addition to a penalty under Section 270A for underreporting or misreporting of income, prosecution proceedings may also be launched under Section 276C for tax evasion and under Section 276CC for non-filing of return.

FAQ 5. Is there any fee or penalty levied upon the taxpayer for furnishing an updated return?

No penalty or fee is levied upon a person who wishes to furnish an updated return. However, he is required to pay an additional tax in accordance with Section 140B. The additional tax shall be equal to 25% of the aggregate of tax and interest payable by a person on the filing of the updated return, where such return is furnished after the expiry of the due date of filing of belated or revised return but before completion of a period of 12 months from the end of the relevant assessment year. Where filed after 12 months but before the completion of 24 months, the additional tax shall be 50%. Where the return is filed after 24 months but within 36 months, the additional tax shall be 60%, and if filed after 36 months but within 48 months from the end of the relevant assessment year, the additional tax payable shall be 70% of the aggregate of tax and interest. The table below enumerates the additional tax payable by an assessee on filing of the updated return after certain months from the expiry of the due date.

Additional tax	For which assessment year, the additional tax will be payable if the updated return is filed between 01-04-2026 and 31-03-2027
25%	Assessment Year 2025-26
50%	Assessment Year 2024-25
60%	Assessment Year 2023-24
70%	Assessment Year 2022-23

Further, a fee under Section 234F shall be charged if such a person did not furnish a return of income for that Assessment Year for which he is furnishing an updated return.

(Read More: Updated Return of Income on taxmann.com/practice)

FAQ 6. Is there a separate form for filing an updated return?

No separate ITR forms have been notified for filing an updated return. A taxpayer is required to furnish an updated return on those ITR forms notified for the respective Assessment Year for which an updated return is to be furnished. Such an ITR form is to be filed along with the newly notified form ITR-U.

ITR-U seeks the following additional details from the taxpayers:

Part A General Information (ITR-U)

This part of ITR-U seeks general information from taxpayers related to the filing of an updated return. It includes the following:

1. Are you eligible to file an updated return? i.e., a person is not falling in such circumstances wherein an updated return cannot be filed.
2. Selecting the ITR form for filing an updated return
3. Reasons for updating income. This includes reasons such as returns previously not filed, income not reported correctly, wrong heads of income chosen, etc.
4. Are you filing an updated return within 12 months from the end of relevant AY or between 12 to 24 months from the end of relevant AY?
5. Are you filing an updated return to reduce carried forward loss, unabsorbed dep., or tax credit?

Part B – Computation of updated income and tax payable (ITR-U)

This part of ITR-U includes heads of income under which additional income is reported. The taxpayer is required to mention only additional income. As reported in Part B TI of the ITR form, total income shall also be reported here to compute the additional tax payable by the assessee on the updated return.

Adjustments such as previously paid tax, refund issued to the taxpayer, and fee for default in the furnishing of return of income under Section 234F shall be considered while calculating such additional tax.

Tax Payments (ITR-U)

This part of ITR-U includes details of tax payment by the assessee on the updated return under Section 140B and details of payments of advance tax, self-assessment tax, and regular assessment tax, the credit for which has not been claimed in the earlier return.