Updated Return (ITR-U) Rules: A Comprehensive FAQs for Indian Taxpayers

1. What is an “Updated Return” (ITR-U)?

An Updated Return (or ITR-U) is a special type of income tax return that allows a taxpayer to correct or update previously filed ITRs (original, belated, or revised) for past years, including adding omitted income, correcting errors, etc. It is provided under section 139(8A) of the Income-tax Act.

2. How is an Updated Return different from a Revised or Belated Return?

• Original Return: Filed by due date (normally July 31).
• Belated Return: Filed after due date but before December 31 of the assessment year.
• Revised Return: Filed before December 31 to correct errors in the original/belated return.
• Updated Return (ITR-U): Can be filed even after those deadlines have passed, extending up to four years after the end of the assessment year to fix errors or omissions.

3. Who can file an Updated Return?

Almost any taxpayer (individual, HUF, firm, company, etc.) who filed an ITR can file an Updated Return for that year, unless specific restrictions apply (see Q7).

4. What is the time limit to file an Updated Return?

Under the updated rules from Budget 2025:

You can file an Updated Return within 48 months (4 years) from the end of the relevant assessment year.
Example: For AY 2025-26, you could potentially file an Updated Return until March 31, 2030, under this window.

5. What changes can be made in an Updated Return?

You may be able to:

• Include omitted income
• Correct head of income mistakes
• Rectify improper classifications
• Report omitted tax details

The Updated Return is not a way to increase reported losses or claim or increase refunds (see Q7).

6. Is additional tax payable when filing an Updated Return?

Yes. Filing an Updated Return may attract additional tax, which is a percentage of tax and interest due, based on how long after the end of the assessment year you file:

• Within 12 months: ~25% extra
• Within 24 months: ~50% extra
• Within 36 months: ~60% extra
• Within 48 months: ~70% extra
  These percentages are part of the updated rules.

7. When cannot an Updated Return be filed?

You cannot use ITR-U if:

• You are trying to claim or increase a tax refund
• You want to reduce total tax liability
• You want to show or carry forward losses or unabsorbed depreciation
• Your case relates to search, seizure, or prosecution proceedings
• You did not have any tax liability (only refunds or nil return) — in some interpretations, this also blocks the use of ITR-U for refund claims.

8. How many times can I file an Updated Return?

Only once per assessment year under section 139(8A).

9. Can an Updated Return be used to change the tax regime?

No. You cannot change the tax regime (e.g., from old to new) in an Updated Return. That choice must be made by the original due date.

10. Does filing an Updated Return help claim a refund?

No. Updated Returns cannot be used to claim or increase refunds (refund claims are not permitted via ITR-U). If your aim is to claim a refund, you must ensure it is included in an original or revised return within the statutory time limits before filing an Updated Return. 

11. How do I file an Updated Return?

• Log in to the Income Tax e-filing portal
• Select “File Income Tax Return” → choose Assessment Year
• Select filing type as 139(8A) — Updated Return
• Choose the correct ITR form (same form for that year)
• Fill and submit online with applicable tax payments.

12. Are penalties/late fees applicable for Updated Returns?

Updated Returns themselves are separate from belated/revised ones. However, interest, additional tax, and penalties (like under section 234F) may still apply for late tax payments or filing beyond due dates. Ensure your tax and interest are calculated correctly before submission. (General tax principle)

13. Does an Updated Return affect carry-forward losses or deductions?

Updated Returns may impact carried forward losses, unabsorbed depreciation, or tax credits if these change due to the updated income/ tax details — such effects must be reported in the Updated Return calculation.

14. Do I need documents to support Updated Return income changes?

Yes. Just like any ITR, keep:

• Form 16/16A
• Bank statements
• Challans for tax payments
• Investment proofs
• Other income documents

ready, especially for the updated information being declared.

15. Where can I get official help if I face issues?

You can contact the Income Tax e-filing helpdesk:
+918882323267 | +91 97177 54956
(Services hours typically 10:00–20:00.)

Taxcellent assists you in filing updated returns within statutory timelines at reasonable professional fees.