ITR filing: Taxpayers who miss the regular deadline for filing their income tax return get an additional chance through the updated income tax return (ITR-U) facility, introduced under Section 139(8A) of the Income Tax Act. This option allows individuals to correct errors, add omitted income, or rectify misreporting even after the due dates for belated or revised returns have passed.
Time limit for filing ITR-U
An updated return can be filed within four years from the end of the relevant assessment year, according to an ET report. For example, if a taxpayer misses the original filing deadline of July 31 (extended to September 15 this year) and also the belated or revised return deadline of December 31, they can still file an updated return for the assessment year 2025-26 until March 31, 2030.
Additional tax liability
While ITR-U offers the flexibility to correct past mistakes, it comes with an added cost. Taxpayers filing an updated return are required to pay additional tax, with the quantum depending on how late the filing is within the four-year window.
When you cannot file ITR-U
Certain changes are not permitted through an updated return. Taxpayers cannot use ITR-U if they are:
- Claiming or increasing a refund amount
- Declaring reduced tax liability
- Reporting or carrying forward losses
- Facing an assessment, reassessment, or revision proceeding
- Subject to a survey under Section 133(A) or search under Section 132
- In cases where accounts, assets, or documents have been seized under Section 132A
- If an updated return has already been filed once for the relevant year
ITR-U thus provides a safeguard for taxpayers to correct past omissions but with clear restrictions and an additional tax cost.
