ITR-U — Updated Return under Section 139(8A)
Introduced in Budget 2022, ITR-U covers missed filings, under-reported income and unclaimed items. Additional tax: 25% of tax + interest if filed within 12 months, 50% within 24 months. Cannot be used for refund, reducing tax liability or loss enhancement.
- Window: 24 months from end of AY
- Additional tax: 25% (year 1) / 50% (year 2)
- Cannot reduce liability, claim refund or increase loss
- Applies where 139(1)/(4)/(5) window is closed
- Not allowed if search/survey conducted
Definition
Updated Return (ITR-U)
What is Updated Return (ITR-U)?
Introduced in Budget 2022, ITR-U covers missed filings, under-reported income and unclaimed items. Additional tax: 25% of tax + interest if filed within 12 months, 50% within 24 months. Cannot be used for refund, reducing tax liability or loss enhancement.
Key rules to remember
- Window: 24 months from end of AY
- Additional tax: 25% (year 1) / 50% (year 2)
- Cannot reduce liability, claim refund or increase loss
- Applies where 139(1)/(4)/(5) window is closed
- Not allowed if search/survey conducted
Worked example
Forgot to file AY 2023-24 return (deadline 31 Dec 2023): files ITR-U in March 2025 with ₹18k tax + ₹1,800 interest + 25% additional = ₹22.5k total.
Which ITR form applies
- ITR-1 (Sahaj) — Up to ₹50 lakh total income
- ITR-2 — No upper limit
- ITR-3 — No upper limit
- ITR-4 (Sugam) — 44AD ₹3 Cr (digital) / 44ADA ₹75L / 44AE per vehicle
Ready to file with CA-led accuracy?
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Frequently asked questions
Frequently asked questions
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Related tools, guides & services
Related reading
- Which ITR Form Should You File in 2025? Complete Guide (ITR-1 to ITR-4)
- Which ITR Form Should You File in 2026? (ITR-1 to ITR-7 Explained)
- ITR-1, ITR-2, ITR-3, ITR-4 — Which Form Do You Actually Need to File?
- Missed the ITR Deadline? Penalty, Interest and the Belated Return Playbook
- ITR Filing Last Date FY 2024-25 (AY 2025-26) — Complete Guide
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