ITR Filing 2026: The deadline for filing Income Tax Returns (ITR) for the assessment year (AY) 2026-27 is approaching, and many taxpayers are busy submitting their returns. But, what if you forgot to file
your return for the previous year? Or realised after filing that you had missed reporting some income?
The income tax department allows taxpayers to correct such mistakes through an Updated Income Tax Return (ITR-U). Introduced under Section 139(8A) of the Income-tax Act, 1961, ITR-U gives eligible taxpayers an opportunity to voluntarily update their tax returns by paying the applicable additional tax. Here’s everything you need to know:
What Is Updated ITR (ITR-U)?
An Updated Return, popularly known as ITR-U, is a facility that allows taxpayers to file or update their income tax return after the normal, belated or revised return deadlines have expired.
It can be used by taxpayers who either did not file their return earlier or who need to disclose additional income that was left out in the original return.
The objective is to encourage voluntary tax compliance and reduce litigation by allowing taxpayers to correct genuine omissions.
Can You File Last Year’s ITR Now?
Yes, in many cases you can. If you missed filing your ITR for the previous assessment year or need to report additional income, you may be able to file an Updated Return, provided you satisfy the eligibility conditions and file it within the prescribed time limit.
For example, if you missed filing your return for AY 2025-26, you may still be able to file an ITR-U if the statutory time limit has not expired.
What Is the Time Limit for Filing ITR-U?
The Finance Act, 2025 extended the time limit for filing an Updated Return. Taxpayers can now file an Updated Return within 48 months (four years) from the end of the relevant assessment year, subject to payment of the prescribed additional tax. Earlier, the time limit was 24 months.
This means taxpayers now have a longer window to voluntarily disclose omitted income and regularise their tax affairs.
Who Can File an Updated Return?
A taxpayer may file an Updated Return if they:
- Did not file their original return.
- Need to report additional income.
- Want to correct under-reported income.
- Need to rectify mistakes resulting in higher tax liability.
However, ITR-U is intended only for paying the correct tax. It cannot be used to reduce tax liability or increase refunds.
Who Cannot File ITR-U?
An Updated Return cannot be filed in several situations, including if:
- The updated return results in a lower tax liability.
- The updated return claims or increases a refund.
- The updated return converts a tax liability into a loss or increases an existing loss.
- A search or survey has been initiated against the taxpayer for the relevant assessment year.
- Assessment, reassessment or revision proceedings have already been completed in certain specified circumstances.
The income tax department has already received specific information against the taxpayer under laws relating to tax evasion, money laundering or similar investigations, and the taxpayer has been informed.
The taxpayer is covered under other restrictions specified under Section 139(8A).
How Much Additional Tax Is Payable?
Filing an Updated Return is not free. Apart from the normal tax, interest and applicable fee, taxpayers are also required to pay an additional amount depending on when they file the updated return.
If the Updated Return is filed:
Within 12 months from the end of the relevant assessment year, an additional 25% of the aggregate tax and interest is payable.
After 12 months but up to 24 months, the additional amount increases to 50%.
After 24 months but up to 36 months, the additional amount is 60%.
After 36 months but up to 48 months, the additional amount rises to 70%.
The longer a taxpayer delays filing the Updated Return, the higher the additional tax payable.
Can You Claim a Refund Through ITR-U?
No. The Updated Return cannot be used to claim a refund or increase an existing refund. Similarly, it cannot be used to reduce the tax payable. Its purpose is only to voluntarily disclose omitted income and pay the correct tax due.
Which Form Should You Use?
Taxpayers are required to file Form ITR-U along with the applicable Income Tax Return form for the relevant assessment year. The return can be filed online through the Income Tax Department’s e-filing portal after paying the applicable tax, interest and additional amount.
Why Should File an Updated Return?
If you have genuinely missed reporting income, forgotten to file your return, or later realised that your tax liability was higher than what you originally declared, experts say that filing an Updated Return can help you voluntarily comply with tax laws.
A Delhi-based tax practitioner said, “Since filing ITR-U involves payment of additional tax and is subject to several conditions, taxpayers should carefully verify their eligibility before filing.”
