ITR-U: Updated Return Guide
How the updated return works, the 48-month window, the 25% to 70% additional tax, who cannot file, and why the AY 2022-23 window closes on 31 March 2027.
Published by SKAG and Associates · Page maintained by CA Gaurav Singh (ICAI M.No. 539050) · Last updated: 30 October 2026
Note: General information on the law as at 30 October 2026. Check the current Act, rules and e-filing utility before filing; this is not a substitute for professional advice.
The updated return was introduced by the Finance Act, 2022 as a way to correct a past year voluntarily, on payment of an extra levy, before the department starts proceedings. It is filed in the ITR-U form along with the regular ITR form for that year. Since 1 April 2025 the window is 48 months instead of 24, which is why returns for AY 2022-23 can still be updated in FY 2026-27.
Time limits and additional tax by year (as at 30 October 2026)
Each band runs from the end of the relevant assessment year. The rate applies to the aggregate of the tax and interest payable on the updated return, not to the income.
| Assessment year (financial year) | AY ended | Rate if filed by 31 Mar 2027 | Last date for ITR-U |
|---|---|---|---|
| AY 2022-23 (FY 2021-22) | 31 Mar 2023 | 70% | 31 Mar 2027 |
| AY 2023-24 (FY 2022-23) | 31 Mar 2024 | 60% (70% after) | 31 Mar 2028 |
| AY 2024-25 (FY 2023-24) | 31 Mar 2025 | 50% | 31 Mar 2029 |
| AY 2025-26 (FY 2024-25) | 31 Mar 2026 | 25% | 31 Mar 2030 |
| AY 2026-27 (FY 2025-26) | 31 Mar 2027 | Use a belated (to 31 Dec 2026) or revised (to 31 Mar 2027) return first | 31 Mar 2031 |
The window for AY 2021-22 closed on 31 March 2026. From Tax Year 2026-27 the 2025 Act counts the 48 months from the end of the financial year following the tax year, so Tax Year 2026-27 can be updated until 31 March 2032.
When an updated return cannot be filed
- It is a return of loss, or it reduces the tax already returned or assessed, or results in or increases a refund. (From 1 March 2026 an updated return that only reduces a loss already returned is allowed.)
- A search has been started, books or assets requisitioned, or a survey conducted for that year or a related year.
- An assessment, reassessment or recomputation for that year is pending or has been completed.
- An updated return has already been filed for that year: only one is allowed, and it cannot be revised.
- The Assessing Officer has information about the person under specified laws (such as the Prevention of Money-laundering Act or the Black Money Act), or prosecution has been started.
- A show-cause notice under Section 148A was issued more than 36 months after the end of the assessment year, unless an order under Section 148A(3) holds that it is not a fit case for reassessment.
From 1 March 2026 a person who receives a notice under Section 148 may respond by filing an updated return within the time given in the notice. In that case Section 140B(3A) adds a further 10% of the tax and interest to the additional tax.
How to file, step by step
- Download the AIS and Form 26AS for the year and list the income that was missed or under-reported.
- Compute the tax on the updated total income, the interest under Sections 234A, 234B and 234C as applicable, and any late filing fee under Section 234F if no return was filed earlier.
- Work out the additional tax at the rate for the filing date. The fee is not part of the base.
- Pay the whole amount through e-Pay Tax on the e-filing portal before filing; the challan details are entered in the return.
- File the ITR-U with the applicable ITR form for that year and verify it.
Worked example: FY 2021-22 interest left out
Asha, a resident individual, filed her return for AY 2022-23 on time but left out ₹2,00,000 of fixed-deposit interest. Her other income already put her in the 20% slab of the regime she used. In November 2026 she decides to file an updated return.
| Tax on the omitted ₹2,00,000 at 20% plus 4% cess | ₹41,600 |
| Interest (assumed here at 1% a month under Section 234B for 56 months, April 2022 to November 2026; the utility computes the exact figure) | ₹23,296 |
| Aggregate of tax and interest | ₹64,896 |
| Additional tax at 70% (filed after 36 months, within 48) | ₹45,427 |
| Total to pay before filing | ₹1,10,323 |
If she misses 31 March 2027, the year can no longer be updated, and the omitted income can only be dealt with in proceedings started by the department. The ITR-U calculator works out the band and additional tax for any year.
Under the Income-tax Act, 2025
For Tax Year 2026-27 onwards, the updated return is in Section 263(6) and the tax on it in Section 267 of the Income-tax Act, 2025, with the same 25% to 70% scale. Years up to AY 2026-27 remain under Section 139(8A) and Section 140B of the 1961 Act, within the time limits of that Act. The full section mapping is in our Income Tax Act 2025 transition guide.
Frequently Asked Questions
What is the last date to file an updated return for AY 2022-23?
An updated return for AY 2022-23 (FY 2021-22) can be filed up to 31 March 2027, which is 48 months from the end of that assessment year (31 March 2023). Because it is filed after 36 months, the additional tax is 70% of the aggregate of tax and interest.
How much additional tax is payable on ITR-U?
Under Section 140B of the Income-tax Act, 1961, the additional tax is 25% of the aggregate of tax and interest if the updated return is filed within 12 months from the end of the relevant assessment year, 50% within 24 months, 60% within 36 months and 70% within 48 months. Where it is filed in response to a notice under Section 148, a further 10% applies.
Can ITR-U be filed to claim a refund or a higher loss?
No. An updated return cannot reduce the tax already returned or assessed, cannot result in or increase a refund, and cannot be a return of loss. From 1 March 2026 it may, however, be filed where it only reduces a loss already returned.
Who cannot file an updated return?
It cannot be filed where a search has been started or a survey conducted, where an assessment or reassessment for the year is pending or completed, where an updated return has already been filed for that year, where prosecution has been started, or where a show-cause notice under Section 148A was issued more than 36 months after the end of the assessment year (unless an order holds it is not a fit case for reassessment).
Which law applies to updated returns after 1 April 2026?
For AY 2026-27 and earlier years, the updated return is filed under Section 139(8A) of the Income-tax Act, 1961 within the time limits of that Act, even after the Income-tax Act, 2025 came into force. From Tax Year 2026-27 the provisions are Section 263(6) and Section 267 of the 2025 Act.
Should I file a belated or revised return instead?
For AY 2026-27, yes, while the time is open: a belated return can be filed up to 31 December 2026 and a revised return up to 31 March 2027, and neither carries the 25% to 70% additional tax. An updated return is meant for years where those options have closed.