Updated Return Filing — ITR-U (Section 139(8A))

Section 139(8A) — Income-tax Act, 1961
Introduced by Finance Act 2022, Section 139(8A) allows any person (other than a company or firm required to furnish a return under s. 139(1) through (4B)) to furnish an updated return of income at any time within 24 months from the end of the relevant assessment year, subject to payment of additional tax.

Finance Act 2025 amendment: The window was extended to 48 months (4 years) from the end of the relevant AY, applicable to AY 2025-26 and subsequent years. For AY 2024-25 and earlier, the original 24-month limit applies.

Form ITR-U (prescribed under ITR Rules 2026, Rule 12): The updated return must be filed electronically on the income tax e-filing portal (www.incometax.gov.in) and is separate from the original return. It must be accompanied by payment of additional tax under Section 140B.

Section 140B — Additional tax on updated return:

• Filed within 12 months from end of relevant AY: 25% of [additional tax due + interest under Sections 234A, 234B, 234C]


• Filed after 12 months but within 24 months: 50% of [additional tax due + interest]


• Filed after 24 months but within 48 months (AY 2025-26+): 60% of additional tax + interest

AIS/26AS cross-reference: The income tax department cross-checks every ITR-U against the Annual Information Statement (AIS) and Form 26AS. A CA review ensures the updated return addresses all high-value transaction flags before filing.

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ITA 2025 Concordance (in force 1 April 2026)
Section 139(8A) [ITA 1961] → Section 263 [ITA 2025] (updated return — within the consolidated return filing provisions)
Transition note: AY 2026-27 (and AY 2020-21 through AY 2026-27, which are the years ITR-U can correct) all run under ITA 1961 per Section 536(2). ITA 2025 return filing (Section 263) applies from tax year 2026-27.
Section 140B [ITA 1961] → Section 267 [ITA 2025] (Tax on updated return — covers the 25%/50% additional tax and interest payable along with ITR-U filing)

The Updated Return (ITR-U) under Section 139(8A) allows any taxpayer to file or re-file an income tax return for any assessment year from AY 2020-21 onwards, even after all other deadlines have passed. It covers cases where income was omitted, wrong heads were used, deductions were missed, or a loss return was not filed in time.

AY-wise deadlines (24 months from end of relevant AY):
| Assessment Year | ITR-U Deadline |
|---|---|
| AY 2022-23 | 31 March 2025 — CLOSED |
| AY 2023-24 | 31 March 2026 — CLOSED |
| AY 2024-25 | 31 March 2027 — open now |
| AY 2025-26 | 31 March 2028 — open now |
| AY 2026-27 | 31 March 2029 — open after original filing |

Note: Finance Act 2025 extended the ITR-U window from 24 months to 48 months (4 years) for AY 2025-26 onwards, effective from 1 April 2025. AY 2024-25 and earlier remain at 24 months.

When to use ITR-U:

• You discovered unreported income (salary, interest, freelance, capital gains) after the original return was filed


• You filed under the wrong regime (new vs old) or used the wrong ITR form


• You missed deductions (80C, 80D, home loan interest) and want to claim a refund


• You had business/professional losses that were not filed within the belated deadline (31 Dec) and cannot carry forward


• The income tax department sent an AIS discrepancy notice and you want to proactively correct before scrutiny begins

What ITR-U cannot do:

• Reduce your tax liability below what was already assessed (you cannot use ITR-U to claim a refund of tax already paid — the updated return must show equal or higher liability)


• Be filed if a search, survey, or prosecution has been initiated for that AY


• Be filed if a reassessment or revision proceeding is pending for that AY

Additional tax payable with ITR-U:

• Filed within 12 months from end of relevant AY: 25% of additional tax + interest


• Filed between 12–24 months: 50% of additional tax + interest


• Filed between 24–48 months (AY 2025-26 onwards): 60% of additional tax + interest

A CA-prepared ITR-U minimises the additional tax by ensuring all eligible deductions are correctly claimed, the correct ITR form is used, and the computation reconciles with AIS/Form 26AS to avoid triggering further scrutiny.