ICAI Firm Regn. No. 010699SMon–Sat, 9:00 AM – 7:00 PM
Income Tax & TDS

Updated Return (ITR-U) and Revised Returns

Mistakes in a filed return can be corrected. A revised return fixes errors — free until 31 December, and with a small fee until 31 March for AY 2026-27. After that, an updated return (ITR-U) lets a taxpayer report income they missed, up to 48 months after the end of the assessment year, by paying additional tax. RITS & Associates works out which route applies and files the correction.

Updated September 2026ICAI FRN 010699S2-minute read

Which route applies

Ways to correct a return
RouteWhenCostCan it reduce tax?
Revised returnUntil 31 March after the end of the tax year (31 March 2027 for AY 2026-27), or before assessment is completedNone until 31 December; ₹1,000 or ₹5,000 afterYes
Belated returnOriginal not filed on time; by 31 DecemberLate fee and interest—
Updated return (ITR-U)Up to 48 months after the end of the assessment yearAdditional tax of 25%–70% of tax and interestGenerally no — it's for reporting more income

Additional tax on an updated return

Additional tax by time of filing
Filed withinAdditional tax
12 months from the end of the assessment year25% of tax and interest
12 to 24 months50%
24 to 36 months60%
36 to 48 months70%

The Finance Act, 2026 allows an updated return even after a reassessment notice, within the time the notice allows, with the additional tax ten percentage points higher. We confirm which rules apply to the year being corrected before filing.

An updated return can't be filed in some situations — for example where a search has been initiated, or where it would reduce tax or increase a refund. We check eligibility first.

Documents required

  • The original return and its acknowledgement.
  • Details of the income being added or the error being corrected.
  • AIS, Form 26AS and TDS certificates.
  • Proof of payment of tax, interest and additional tax.

How we handle it

  1. Understand what was missed

    The income or error and the year affected.

  2. Choose the route

    Revised, belated or updated return.

  3. Compute tax

    Including interest and additional tax for ITR-U.

  4. Pay and file

    Tax is paid before the updated return is filed.

Practical notes from our engagements

  • AIS mismatch ignored. The department's data often shows what was missed. Correcting it voluntarily is cheaper than waiting for a notice.
  • Revised return window missed. 31 December is the practical deadline for a free correction.

How we handle return corrections

We reconcile AIS and 26AS with the filed return, choose the cheapest valid route, compute the tax and file.

Frequently asked questions

What is ITR-U?

An updated return that lets a taxpayer report income missed in an earlier return, up to 48 months after the end of the assessment year, on payment of additional tax.

How much extra tax is payable on ITR-U?

25%, 50%, 60% or 70% of the tax and interest, depending on whether it's filed within 12, 24, 36 or 48 months.

Can ITR-U be filed to claim a refund?

No. It can't be used to reduce tax or increase a refund.

When can a revised return be filed?

For AY 2026-27, until 31 March 2027, or before the assessment is completed, whichever is earlier. It's free until 31 December 2026; after that a fee of ₹1,000 (income up to ₹5 lakh) or ₹5,000 applies. A belated return can be revised too.

Can ITR-U be filed after a notice?

The Finance Act, 2026 allows it after a reassessment notice, within the time allowed, at higher additional tax.

Not sure which service fits?

Describe your situation in a sentence or two. A partner will tell you what it involves, what we'll need from you and the timeline — before any work begins.

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