Income Tax Return: Big news for taxpayers. If you happen to have forgotten to report any income or have submitted incorrect details in your Income Tax Return (ITR), there’s still an opportunity for you to rectify it. You can make the necessary corrections by March 31st. To do this, you will need to submit an updated return (ITR-U). The deadline of March 31st is approaching quickly. Filing an updated return can help you avoid penalties or legal issues.
What does updated ITR mean?
Even if a taxpayer has not previously filed an income tax return, they are allowed to file an updated return within 48 months following the conclusion of the relevant assessment year. This implies that the updated return for the assessment year 2021-22 can be submitted until March 31, 2026. After this date, those taxpayers will lose the chance to file a return.
Who can file ITR-U?
The option for an updated income tax return (ITR-U) is outlined in Section 139(8A) of the Income Tax Act. It permits taxpayers to amend mistakes in their returns, reveal undisclosed income, or update returns that have already been filed. Even if a taxpayer missed the original deadline for filing their return, they can still submit an updated return.
Can reassessment proceedings be filed after they have commenced?
In simple terms, ITR-U enables taxpayers to voluntarily rectify any shortcomings in their tax submissions. A significant announcement was made by the government in the Union Budget 2026. Taxpayers are now permitted to file updated returns even after reassessment proceedings have started. However, this will result in an additional 10% penalty on top of the original penalty. Taxpayers can also account for losses when submitting ITR-U.
Is there a difference between ITR-U and revised return?
ITR-U differs from a revised return. ITR-U is applicable in cases where income has not been reported, whether intentionally or accidentally. Mrinal Mehta, joint secretary of the Bombay Chartered Accountants Society, stated, “ITR-U is not a mandatory return. It is an option that allows taxpayers to pay taxes along with additional tax and interest in the event of missed tax payments.”
