Missed Filing Your ITR Last Year? Here's How Updated ITR (ITR-U) Can Help

If you missed filing your Income Tax Return (ITR) for the previous assessment year or forgot to report certain income, you still have an opportunity to correct it by filing an Updated Income Tax Return (ITR-U). The facility, introduced under Section 139(8A) of the Income Tax Act, 1961, allows taxpayers to rectify mistakes and pay any additional tax due.

An Updated ITR (ITR-U) can be used if you failed to file your return, reported incorrect income, or omitted certain income details. It helps taxpayers voluntarily correct errors and avoid unnecessary legal issues, even after the deadlines for filing a belated or revised return have expired.

Taxpayers can also use ITR-U to file a missed return for the Assessment Year 2026-27, subject to the prescribed time limit.

Under the Finance Act, 2025, the time limit for filing an Updated ITR has been extended from 2 years to 4 years (48 months) from the end of the relevant assessment year. This gives taxpayers additional time to disclose omitted income and pay the applicable taxes.

However, ITR-U cannot be used to claim a refund, increase an already issued refund, or reduce the tax liability declared in an earlier return. It is also not available to taxpayers against whom assessment, search, or prosecution proceedings have been initiated.

Taxpayers filing an Updated ITR must pay the applicable tax, interest, late fee, and additional tax. The additional tax depends on the delay in filing:

Within 12 months: 25% additional tax

12 to 24 months: 50% additional tax

24 to 36 months: 60% additional tax

36 to 48 months: 70% additional tax

To file an Updated ITR, taxpayers must submit the ITR-U form along with the applicable ITR form for the relevant assessment year after paying the required tax, interest, and additional charges.