Updated Return (ITR-U): 48-Month Window and Additional Tax Rates
Section 139(8A) allows taxpayers to file an Updated Return using Form ITR-U after all other deadlines have passed. It was introduced by the Finance Act, 2022 and expanded by Budget 2025.
WHAT IS AN UPDATED RETURN
An updated return lets you voluntarily disclose missed or incorrectly reported income. You can file it even if you never filed a return originally. The key requirement is that it must result in additional tax payable — you cannot use ITR-U to claim a refund or increase a loss.
TIME LIMIT: 48 MONTHS
Budget 2025 extended the window from 24 months to 48 months from the end of the relevant assessment year. For AY 2024-25 (FY 2023-24), you can file ITR-U up to 31 March 2029.
ADDITIONAL TAX RATES UNDER SECTION 140B
Within 12 months of end of AY: 25% of aggregate tax and interest
12 to 24 months: 50%
24 to 36 months: 60%
36 to 48 months: 70%
This additional tax is over and above the regular tax and interest due.
WHO CANNOT FILE ITR-U
An updated return cannot be filed if:
- A search under Section 132 or requisition under Section 132A has been initiated for the relevant AY or preceding AYs
- A survey under Section 133A (other than Section 133A(2A)) has been conducted for the relevant AY
- Prosecution proceedings have been initiated for the relevant AY
- Assessment, reassessment, recomputation, or revision proceedings are pending or completed for that AY
- Information has been received under DTAA/TIEA (Sections 90 or 90A) relating to the assessee
- A notice under Section 148A has been issued after 36 months from end of the relevant AY
HOW TO FILE
File ITR-U on the Income Tax e-filing portal at incometax.gov.in. Select the relevant AY, choose ITR-U as the return type, disclose the additional income, compute the additional tax under Section 140B, and pay it before filing.
PRACTICAL TIP
If you discover unreported income from a past year, file ITR-U sooner rather than later. The additional tax rate jumps from 25% to 70% as time passes.
WHAT IS AN UPDATED RETURN
An updated return lets you voluntarily disclose missed or incorrectly reported income. You can file it even if you never filed a return originally. The key requirement is that it must result in additional tax payable — you cannot use ITR-U to claim a refund or increase a loss.
TIME LIMIT: 48 MONTHS
Budget 2025 extended the window from 24 months to 48 months from the end of the relevant assessment year. For AY 2024-25 (FY 2023-24), you can file ITR-U up to 31 March 2029.
ADDITIONAL TAX RATES UNDER SECTION 140B
Within 12 months of end of AY: 25% of aggregate tax and interest
12 to 24 months: 50%
24 to 36 months: 60%
36 to 48 months: 70%
This additional tax is over and above the regular tax and interest due.
WHO CANNOT FILE ITR-U
An updated return cannot be filed if:
- A search under Section 132 or requisition under Section 132A has been initiated for the relevant AY or preceding AYs
- A survey under Section 133A (other than Section 133A(2A)) has been conducted for the relevant AY
- Prosecution proceedings have been initiated for the relevant AY
- Assessment, reassessment, recomputation, or revision proceedings are pending or completed for that AY
- Information has been received under DTAA/TIEA (Sections 90 or 90A) relating to the assessee
- A notice under Section 148A has been issued after 36 months from end of the relevant AY
HOW TO FILE
File ITR-U on the Income Tax e-filing portal at incometax.gov.in. Select the relevant AY, choose ITR-U as the return type, disclose the additional income, compute the additional tax under Section 140B, and pay it before filing.
PRACTICAL TIP
If you discover unreported income from a past year, file ITR-U sooner rather than later. The additional tax rate jumps from 25% to 70% as time passes.
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Disclaimer: This content is the author's personal opinion and analysis. It does not constitute professional tax or legal advice. Consult a qualified professional for specific advice on your situation.
Comments (5)
Sharing with all my clients today
The aggregate threshold point is what most people get wrong. Good to see it stated correctly.
Useful
Finally a clear explanation
Bookmarked 🔖