Updated Income Tax Return (ITR-U)

By | October 11, 2025
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Updated Income Tax Return (ITR-U)

    • Introduction [00:03]: This video discusses filing an Updated Income Tax Return (ITR-U).
    • Purpose [00:25]: A new provision allows taxpayers to update or file their income tax returns upon payment of additional taxes in case of errors or omissions in previously filed returns. The objective is to provide an opportunity for voluntary compliance to rectify errors and reduce litigation.
    • Legal Provisions [00:38]: The provisions for Updated ITR are available under Section 139(8A) read with Section 140B of the Income Tax Act.
    • Deadline Extension [00:17]: As per the Union Budget 2025, the deadline for taxpayers to file an Updated ITR has been extended from 24 months to 48 months from the end of the relevant assessment year.
    • When ITR-U Can Be Filed [01:05]:
      • Whether or not an original, revised, or belated return has been furnished under Section 139 for that assessment year.
      • If the return was previously not filed.
      • If the return was filed but income was not reported correctly.
      • If a wrong head of income was chosen in the earlier ITR.
      • To reduce carry-forward losses.
      • To reduce unabsorbed depreciation.
      • To reduce tax credit under Section 115JB or 115JC.
      • If the tax rate reported earlier was incorrect.
    • When ITR-U Cannot Be Filed [01:48]:
      • If it is a return of loss.
      • If it is a nil return.
      • If it has the effect of decreasing the total tax liability determined on the basis of the previously furnished return.
      • If it results in a refund or increases the refund due on the basis of the previously furnished return.
      • In case of a search or seizure, or if any prosecution proceedings have been initiated [02:06].
      • After 36 months from the end of the relevant assessment year if a notice to show cause under Section 148A has been issued [02:19]. However, if an order is passed under Section 148A(3) determining that it is not appropriate to issue a notice under Section 148, an updated return may still be filed within 48 months from the end of the relevant assessment year.
    • Tax Regime Change in ITR-U [02:51]:
      • A taxpayer must choose the tax regime within the due date prescribed under Section 139(1).
      • Once chosen within the due date, the tax regime cannot be changed after the due date, as an Updated ITR is filed after the due date.
      • For Non-Business Taxpayers (ITR-1 or ITR-2): The option for changing the tax regime can be exercised every year in the ITR itself, but only till the last date prescribed under Section 139(1).
      • For Business Taxpayers (ITR-3 and ITR-4): The option for changing the tax regime is provided only once by filing the form for the relevant financial year within the prescribed due date under Section 139(1).
    • How Many Times Can ITR-U Be Filed? [03:54]: The e-filing portal will not allow filing ITR-U under Section 139(8A) more than once for the same assessment year.
    • Can I file ITR-U if I don’t have any tax payable? [04:13]: No, if your total tax is adjusted with TDS credit and you do not have any additional tax liability, you cannot file ITR-U.
    • Additional Taxes Payable with ITR-U [04:26]:
      • If filed within 12 months from the end of the relevant assessment year: 25% of the aggregate of tax and interest due.
      • If filed after 12 months but before 24 months from the end of the relevant assessment year: 50% of the aggregate of tax and interest due.
      • As per Finance Act 2025, if filed after 24 months but before 36 months: 60% of the aggregate of tax and interest due.
      • If filed after 36 months but before 48 months: 70% of the aggregate of tax and interest due.
    • Steps to File ITR-U on E-filing Portal [05:20]:
      1. Download ITR-U Excel Utility:
        • Go to the e-filing portal homepage and click “Downloads.”
        • Click “Income Tax Returns,” select the relevant assessment year, and then click on the relevant Common Offline Utility. Select the applicable ITR.
        • Download the Excel-based utility.
      2. Prepare and Generate JSON File:
        • Open the downloaded Excel utility.
        • Prepare the Updated ITR in the utility. You can import pre-fill data by clicking “Import Prefill” (download pre-fill data from “e-File” > “Income Tax Return” > “Download Prefill Data”).
        • Click “Calculate Tax.” Ensure no taxes are due before filing.
        • Make tax payments based on calculations and add challan details (BSR code, date of deposit, serial number, amount) at serial number 14 of the Excel file.
        • Validate and generate the JSON file.
      3. Upload JSON File and Complete Verification:
        • Log in to the e-filing portal.
        • Go to “e-File” > “Income Tax Return” > “File Income Tax Return.”
        • Select the assessment year. In the “Filing Type,” select Section 139(8A) Updated Return.
        • Select whether you are audited under Section 44AB.
        • Select the ITR type and click “Continue.”
        • Attach the generated JSON file from your system.
        • Click “Proceed to Verification.”
        • Once validation is successful, select the appropriate verification method and click “Continue.” (Once submitted, details cannot be modified).
        • Upon successful filing and verification, you will receive a success message.
        • Download the acknowledgment receipt for future reference.
    • Further Information [08:58]: For more details, you can visit the website www.incometax.gov.in or contact their helpline numbers.