Missing the due date for filing the Income Tax Return (ITR) does not always mean the end of compliance. For Assessment Year (AY) 2025–26, taxpayers who failed to file the return within the original or belated timelines may still file an Updated Return (ITR-U) under Section 139(8A) of the Income-tax Act, 1961.
What is ITR-U?
ITR-U is a facility that allows taxpayers to voluntarily disclose income or correct omissions and mistakes in earlier returns. It can be filed even if no return was filed earlier or if errors were noticed after the expiry of normal time limits.
Time Limit for Filing
An updated return can be filed within 24 months from the end of the relevant assessment year, subject to fulfillment of prescribed conditions and payment of additional tax.
Important Conditions
- Additional tax and interest are payable along with ITR-U
- No refund can be claimed through an updated return
- Losses cannot be carried forward or enhanced
- ITR-U is not permitted in certain cases such as search, survey, or prosecution proceedings
It is advisable to consult with a qualified Chartered Accountant to understand the implications and ensure proper compliance while filing ITR-U.