ITR-U Updated Return: 48-Month Filing Window Explained

What is the ITR-U filing window?

You can file ITR-U within 48 months from the end of the assessment year (March 31, 2031 for AY 2026-27). Additional tax on tax plus interest is 25% within 12 months, 50% within 24, 60% within 36 and 70% within 48. ITR-U cannot claim a refund.

How to File an ITR-U Under Section 139(8A)

If you missed a deadline, forgot to report an income, or made a computational error in a past return, you now have a far longer runway to fix it. The Finance Act 2025 doubled the ITR-U filing window. What used to be a 24-month correction window is now a 48-month one.

Here is how the Updated Return under Section 139(8A) works, who can use it, and what it costs. If you need professional help filing, see our ITR filing services for updated returns.

What Is an ITR-U?

ITR-U, short for Income Tax Return - Updated, is a corrective return filed under Section 139(8A) of the Income Tax Act 1961 (continued as Section 263(6) of the Income Tax Act 2025). It lets you voluntarily update or correct an earlier return, or file a return for an assessment year where you did not file at all.

It is not a revised return. A revised return (Section 139(5)) has a much shorter window: for AY 2026-27 it runs to March 31, 2027 after Budget 2026, with a Section 234I fee (Rs 1,000, or Rs 5,000 above Rs 5 lakh income) for revisions filed after December 31, 2026. Our belated, revised, and updated return guide explains how these three options differ. Once that window closes, ITR-U becomes the only way to correct or file.

The New 48-Month Window: What Changed

Before the Finance Act 2025, ITR-U could be filed within 24 months from the end of the relevant assessment year. The Finance Act 2025 amended the Section 139(8A) updated return provisions to extend this window to 48 months, effective April 1, 2025.

For AY 2026-27 (financial year 2025-26), the assessment year ends on March 31, 2027, so the deadlines work out as:

Because the window is counted from the end of each assessment year, older years are already in the higher slabs.

Which Assessment Years Are Still Open?

As of September 2026, four assessment years can still be updated:

Every slab changes on April 1, so filing before March 31, 2027 keeps each of these years in its current bracket.

Who Can File ITR-U?

You can file an ITR-U if:

1. You did not file a return (original, belated, or revised) for the relevant assessment year.
2. You filed a return but understated your income.
3. You used a wrong head of income or wrong tax rate.
4. You need to reduce a carried-forward loss, unabsorbed depreciation, or MAT/AMT credit. Until February 2026 this worked only where the updated return was a return of income; the Finance Act 2026 (from March 1, 2026) also allows an updated return that reduces the loss claimed in a loss return filed by the due date. You can never increase a loss.
5. You want to correct any other error that resulted in under-payment of tax.

When You Cannot File ITR-U

ITR-U is a one-way correction mechanism. You cannot file it if any of the following apply:

• The update would result in a refund or increase an existing refund.
• The update would reduce your tax liability, or would be a return of loss (except one that only reduces the loss claimed in a loss return filed by the due date, allowed from March 1, 2026).
• A search under Section 132, requisition under Section 132A, or survey under Section 133A (other than 133A(2A)) has been initiated against you for that year.
• Assessment, reassessment, revision, or re-computation is pending or completed for that year (subject to the reassessment-notice route explained below).
• A show cause notice under Section 148A has been issued after 36 months from the end of the assessment year. If the Assessing Officer later passes an order under Section 148A(3) that it is not a fit case for a Section 148 notice, you can file ITR-U up to the 48-month limit (Finance Act 2025).
• The Assessing Officer has information under certain laws (Black Money Act, Benami Act, PMLA, Smugglers and Foreign Exchange Manipulators Act) that has been communicated to you.
• You have already filed an ITR-U for that assessment year. Only one ITR-U per AY is allowed.

Budget 2026 change for reassessment cases: the Finance Act 2026 lets you file an updated return in response to a reassessment notice, within the period allowed in that notice (Section 148 of the 1961 Act, effective March 1, 2026; Section 280 of the Income Tax Act 2025 from April 1, 2026). The additional tax rises by a further 10% of the aggregate tax and interest (so 35%, 60%, 70% or 80%), you cannot then file any other return in response to that notice, and income on which this additional tax is paid cannot be the basis of an under-reporting or misreporting penalty.

Additional Tax: The Cost of Using ITR-U

Tax Rate Chart

ITR-U Additional Tax Slabs (Section 139(8A))

Additional tax as a percentage of aggregate tax and interest payable. The later you file, the higher the cost

Within 12 months from end of AY

Lowest slab, file early

25%

12 to 24 months from end of AY

Doubles if you cross the 12-month mark

50%

24 to 36 months from end of AY

New slab introduced by Finance Act 2025

60%

36 to 48 months from end of AY

Highest slab, new 48-month window only

70%

Source: Section 140B(3), Income Tax Act 1961, as amended by Finance Act 2025 (Section 267(5), Income Tax Act 2025)

This is where the new 48-month window costs more the longer you wait. The additional tax is computed on the aggregate of tax and interest payable under the updated return, after reducing what was already paid.

The 60% and 70% slabs were introduced by the Finance Act 2025 to make late use of ITR-U meaningfully costly.

Worked example: Arun did not report his freelance income for AY 2024-25 (the assessment year ended March 31, 2025). The unpaid tax works out to Rs 62,400, plus interest of Rs 15,600, an aggregate of Rs 78,000.

• If he had filed between April 1, 2025 and March 31, 2026: 25% additional = Rs 19,500.
• If he files in December 2027 (32 months after the AY ended, the 24 to 36 month slab): 60% additional = Rs 46,800.

Total ITR-U payment in the December 2027 scenario: Rs 78,000 + Rs 46,800 = Rs 1,24,800.

Waiting costs money. The sooner you file, the lower the additional tax.

Common ITR-U Mistakes

• Applying the slab to tax alone. The additional tax is a percentage of tax plus interest under Sections 234A, 234B and 234C. Leaving out interest leaves a short payment, and the ITR-U cannot be filed until the full Section 140B amount is paid.
• Filing ITR-U when a revised return still works. If the revised return window for that year is open, use it. A revised return carries no additional tax.
• Not e-verifying within 30 days. An unverified ITR-U is treated as never filed, and you have used up the payment without the compliance benefit.
• Picking the wrong reason code. Schedule Part B-ATI asks why you are updating. Choose the one that matches the change you are making, not a generic "others".

Step-by-Step: How to File ITR-U

Step 1: Compute the Correct Tax Liability

Re-work your income, deductions, and tax for the relevant assessment year. Identify the under-payment, the associated interest under Sections 234A, 234B, and 234C, and any late-filing fee under Section 234F.

Step 2: Determine the Additional Tax Slab

Check how many months have passed from the end of the relevant assessment year to the date you plan to file. Apply the 25%, 50%, 60%, or 70% slab from the table above.

Step 3: Pay the Tax Before Filing

Pay the aggregate of tax, interest, late fee, and additional tax through e-Pay Tax (Challan 280) under minor head 300 (self-assessment tax), as the Income Tax Department has confirmed for Section 140B payments. Note the BSR code, challan serial number, and date: you enter them in the 140B challan section of Schedule Part B-ATI.

Before paying, pull the AIS (Annual Information Statement) for that year. It shows bank interest, mutual fund redemptions, property deals, and dividends, which are the incomes most often missed in the original return.

Step 4: Download and Fill ITR-U

The ITR-U form is available on the income tax e-filing portal. If you are unsure which base form applies, our ITR filing guide for AY 2026-27 walks through the forms and deadlines. You need to file the relevant ITR form (ITR 1 through ITR 7) with the ITR-U attached, reflecting:

• The original return details (if any).
• The reason for updating (chosen from the reasons listed in Schedule Part B-ATI).
• The revised income, tax liability, and additional tax.

Step 5: File and Verify

File the return online. Verify it through Aadhaar OTP, net banking, DSC, or EVC within 30 days. An unverified ITR-U is treated as not filed.

Can You File Nil or Refund ITR-U?

No. If the updated computation leads to a refund or a lower tax liability, you cannot file ITR-U. The Act expressly bars such filings.

Practical implication: if you filed an original return on time and later realised you forgot a deduction that would increase your refund, your only remedy is a revised return, due by December 31 of the assessment year (from AY 2026-27, up to March 31 of the assessment year with the Section 234I fee). After that, you cannot recover the extra tax paid.

Why File ITR-U?

Even though it costs 25% to 70% extra, ITR-U is still a better option than non-compliance in most situations:

1. Reduces prosecution risk: Wilful failure to file a return can lead to prosecution under Section 276CC. Voluntarily disclosing the income through ITR-U, with the tax paid, puts you in a far stronger position.
2. Limits scrutiny: An updated return that discloses the missed income reduces the risk of a full reassessment under Section 148.
3. Interest keeps running: Every month you delay adds 1% interest under Section 234A and further interest under Section 234B. The meter does not stop just because you avoid filing.
4. Loan, visa, and tender documentation: A clean tax filing record is often required for home loans, visa applications, and government tenders. A gap year in your filings can block these.

Tax Garden Can Help

Filing an ITR-U is not just a matter of recomputation. A wrong disclosure, a missed reason code, or an incorrect challan mapping can render the return invalid, and you lose your one chance at correction for that AY. Tax Garden's tax compliance team prepares your ITR-U from your AIS and 26AS records and applies the correct additional tax band. If you have more than one past AY to clean up, we file the oldest years first, before they move into a higher additional tax band. See our ITR filing service for fees.

See our ITR filing services or see how it works.

This guide covers ITR-U (Updated Return) filing under Section 139(8A) of the Income Tax Act 1961 and its continuation under the Income Tax Act 2025, as amended by the Finance Act 2025. The 48-month window, additional tax slabs (25%, 50%, 60%, 70%), restrictions on refund or loss claims, and one-ITR-U-per-AY rule are based on Sections 139(8A) and 140B of the Income Tax Act 1961 as amended by the Finance Acts 2025 and 2026, Sections 263(6) and 267 of the Income Tax Act 2025, and the Finance Bill 2026 memorandum (indiabudget.gov.in). Confirm the current rules with your CA or tax advisor before filing.

Frequently Asked Questions

What is the last date to file ITR-U?

ITR-U can be filed within 48 months from the end of the relevant assessment year. For AY 2026-27 the last date is March 31, 2031. For AY 2022-23 it is March 31, 2027. The Finance Act 2025 extended the window from 24 to 48 months.

What is the penalty for filing ITR-U late?

ITR-U carries additional tax on the unpaid tax plus interest: 25% if filed within 12 months from the end of the assessment year, 50% within 24 months, 60% within 36 months and 70% within 48 months.

Can I file ITR-U to claim a refund?

No. ITR-U cannot be filed if it results in a refund, increases a refund, or reduces your tax liability. It is also barred if search, survey or assessment proceedings apply for that year, and only one ITR-U is allowed per assessment year.

Can I file ITR-U if I never filed a return for that year?

Yes. ITR-U can be filed for a year in which no original, belated or revised return was filed, as long as it results in tax payable and no search, survey or assessment bars it. The 48-month window still runs from the end of that assessment year, and the late fee under Section 234F is payable along with tax, interest and additional tax.

How do I pay the tax before filing ITR-U?

Under Section 140B, the full tax, interest, any Section 234F fee and the additional tax must be paid before you file. Pay through e-Pay Tax on the e-filing portal for the relevant assessment year using minor head 300 (self-assessment tax), then enter the BSR code, challan date and serial number in the updated return. A short payment makes the ITR-U invalid.

Can I file more than one ITR-U for the same year?

No. Only one updated return is allowed for each assessment year (tax year under the Income Tax Act 2025, Section 263(6)(c)(iv)). Check the figures against your AIS and Form 26AS before filing, because a mistake cannot be corrected with a second ITR-U.

Can I file ITR-U after receiving a reassessment notice?

From 2026, yes, within the period allowed in the notice (Section 148 of the 1961 Act; Section 280 of the Income Tax Act 2025). The additional tax is 10% of tax and interest higher than the normal rate, and once you file ITR-U in response to the notice you cannot respond to it with any other return.

Who cannot file ITR-U?

You cannot file ITR-U for a year if it would lower your tax or raise your refund, if an assessment or reassessment for that year is pending or completed (except the reassessment-notice route), if a search or survey was initiated against you in that year or any later year, if prosecution has started, or if you already filed an ITR-U for that year.