What Is an Updated Return (ITR-U)?
An Updated Return, filed using ITR-U, allows taxpayers to voluntarily correct or update their income tax return after the original, belated, or revised return deadline has passed.
This facility was introduced by the Income Tax Department under Section 139(8A) of the Income Tax Act, 1961.
ITR-U helps taxpayers disclose missed income, correct errors, and regularize past non-compliance while avoiding heavy penalties and litigation.
Who Can File an Updated Return?
You can file an Updated Return if you:
- Missed filing the original ITR
- Reported incorrect income
- Selected the wrong ITR form
- Missed declaring interest, salary, or other income
- Want to reduce the risk of notices
⚠️ Updated Return can be filed only to increase tax liability, not to reduce it.
Who Cannot File ITR-U?
ITR-U cannot be filed if:
- It results in a refund or increases refund amount
- It reduces tax liability
- Assessment, search, or survey proceedings are initiated
- Information is received under international agreements
- Prosecution proceedings have started
Time Limit for Filing Updated Return
- Within 24 months from the end of the relevant assessment year
Example:
For AY 2022-23, ITR-U can be filed up to 31 March 2025.
Additional Tax Payable on ITR-U
- 25% of tax + interest → If filed within 12 months
- 50% of tax + interest → If filed after 12 months but within 24 months
Documents Required for Filing Updated Return
- PAN & Aadhaar
- Original / Belated / Revised ITR (if filed earlier)
- Income details missed earlier
- Bank statements
- Form 16 / Form 26AS / AIS
- Challan details of tax paid
Step-by-Step Process for Filing Updated Return (ITR-U)
Step 1: Identify the Reason for Update
- Income missed
- Wrong income head
- Incorrect deductions
- Non-filing earlier
Select the correct reason code while filing ITR-U.
Step 2: Compute Revised Income
- Recalculate total income
- Compute additional tax and interest
- Add applicable 25% or 50% additional tax
Step 3: Pay Due Tax
- Pay total tax liability using challan
- Keep challan details ready
Step 4: Login to Income Tax Portal
- Login using PAN
- Go to e-File → Income Tax Returns → File Updated Return
Step 5: Select Relevant ITR Form
- ITR-1 / ITR-2 / ITR-3 / ITR-4 / ITR-5 / ITR-6 / ITR-7
- Select ITR-U along with applicable return
Step 6: Fill Updated Return Details
Enter:
- Updated income figures
- Tax paid details
- Reason for filing ITR-U
Ensure data matches AIS and Form 26AS.
Step 7: Validate and Submit
- Validate all fields
- Submit the Updated Return
Step 8: Verify the Return
- Aadhaar OTP
- Net banking
- DSC (where applicable)
⚠️ ITR-U is invalid without verification.
Important Points to Remember
- ITR-U can be filed only once for an assessment year
- It always results in additional tax payment
- Filing early reduces penalty impact
- Accurate disclosure avoids future scrutiny
Benefits of Filing Updated Return
- Avoid income tax notices
- Regularize non-compliance
- Peace of mind
- Clean tax records
- Reduced litigation risk
Why Choose Saving Mantra for Updated Return Filing?
- Expert review of past returns
- Accurate tax recomputation
- End-to-end ITR-U filing
- AIS & notice-prevention checks
- Complete digital support
Disclaimer
This blog is for informational purposes only and does not constitute legal or tax advice. Provisions relating to Updated Return (ITR-U) under Section 139(8A) are subject to change and depend on individual facts and circumstances. Saving Mantra recommends consulting a qualified tax professional before filing an updated return.