Updated return (ITR-U): 48-month window, additional tax of 25–70% and when you cannot use it

An updated return lets you report income you left out, or correct a return, after the normal window for belated and revised returns has closed, provided the correction increases your tax. Under section 263(6) of the Income-tax Act, 2025, it can be filed within 48 months from the end of the financial year following the tax year. For tax year 2026-27 that runs until 31 March 2032. You pay the tax and interest due plus additional tax that rises with delay: under the scheme introduced by the Finance Act, 2025, it is 25% of the extra tax and interest if filed within 12 months, 50% within 24 months, 60% within 36 months and 70% within 48 months. You cannot use it to show a loss, reduce tax or claim a larger refund, or (with one new exception for reassessment notices) once the department has started proceedings for that year.

When an updated return helps

You forgot interest, dividends or capital gains that now show in your AIS.
You claimed deductions you were not entitled to and want to set it right.
You did not file at all for a year and the belated deadline has passed.
You picked the wrong head of income and the correction increases tax.

It is a way to come clean voluntarily before the department acts, at a cost lower than the penalties for under-reporting.

Time limit and additional tax

Filed within … from the end of the financial year following the tax year	Additional tax (on tax + interest due)	For tax year 2026-27, by
12 months	25%	31 March 2029
24 months	50%	31 March 2030
36 months	60%	31 March 2031
48 months	70%	31 March 2032

The additional tax rates are in section 267(5) of the 2025 Act (carried over from the 1961 Act as amended in 2025). Confirm the current percentages before filing.

When you cannot file an updated return

Section 263(6) lists cases where an updated return is not allowed. The ones that matter most to individuals are where it would:

show a loss, or increase a loss (from tax year 2026-27 the Finance Act, 2026 allows an updated return that reduces a loss claimed in a return filed by the due date);
reduce the tax already assessed or determined;
create a refund or increase one;

and where:

you have already filed an updated return for that year;
an assessment, reassessment, recomputation or revision is pending or completed for that year. Exception from tax year 2026-27: after a reassessment notice under section 280 you may file an updated return within the time given in the notice, paying a further 10% of tax and interest on top of the usual additional tax;
the Assessing Officer already holds information about you under specified laws or tax treaties and has communicated it to you;
prosecution has started for that year;
a search, survey or requisition has been started against you, with some exceptions;
after 36 months, a show-cause notice for reassessment has been issued, unless an order later finds that it was not a fit case.

Worked example

Illustrative case: you filed for tax year 2026-27 on time but left out ₹2,00,000 of FD interest on which the bank deducted ₹20,000 TDS. You are in the 30% slab under the old regime. You discover the mistake in January 2030. That is more than 12 but within 24 months of 31 March 2028, so the 50% rate applies.

Extra tax: ₹2,00,000 × 31.2% = ₹62,400.
Less TDS not claimed earlier: ₹20,000. Balance: ₹42,400.
Interest under sections 423, 424 and 425 on the balance, say ₹14,000 for this illustration (the return utility computes the exact amount).
Tax plus interest: ₹56,400.
Additional tax at 50% (filed within 24 months): ₹28,200.
Total payable: ₹84,600.

If the department had found the omission first, a penalty for under-reporting could be 50% of the tax, and the updated return would no longer be possible.

How to file

Compute the extra income, tax, interest and additional tax. The return utility for updated returns on the e-filing portal does the arithmetic.
Pay the full amount first, as self-assessment tax, under the correct Act and year. Earlier years use the 1961 Act.
File the updated return in the form specified for it, giving the reason (income not reported, wrong head, wrong rate and so on).
E-verify within 30 days.

The portal publishes the utilities for updated returns by assessment year. For example, utilities for updated returns for AY 2022-23 were updated to reflect the Finance Act, 2026.

Updated vs revised vs belated return

	Belated	Revised	Updated
When	After due date, within 9 months of tax year end	Within 9 months of tax year end, or before assessment	Up to 48 months after the end of the following financial year
Can reduce tax or claim refund?	Yes	Yes	No
Extra cost	Late fee and interest	None beyond interest	Additional tax of 25–70% plus interest
Old regime available?	No, for people without business income	Only if the original return was filed by the due date	Not a route to switch regime; check the conditions

See the due dates and late fee guide and the common mistakes guide.

When to consult a professional

Use a chartered accountant if you are correcting large amounts, several years, foreign income or assets, or if you have received any communication from the department. The bar on filing after information has been communicated makes timing critical.

If the omission came from an AIS entry, see the AIS mismatch guide. For several years or large sums, read self-filing or hiring a CA.

Frequently asked questions

Can I file an updated return if I never filed an original return?

Yes, subject to the same conditions, as long as it results in tax payable.

Can I file more than one updated return for the same year?

No. Only one updated return is allowed per year.

Does an updated return protect me from penalties?

Penalties for under-reporting do not normally apply to income declared in a valid updated return with all tax paid. Get advice if proceedings are possible.

Sources

Income Tax Department: sections 263(6) and 267 of the Income-tax Act, 2025
Income Tax e-filing portal: updated return utilities and payment