If you missed the deadline to file your Income Tax Return (ITR) for the Assessment Year (AY) 2025-26, you still have one option left.
Taxpayers can now file an Updated Income Tax Return (ITR-U), but they will have to pay additional tax, interest, and in some cases, a late fee.
The Income Tax Department allows taxpayers to correct missed or incorrect returns through the updated return facility.
Who Can File an Updated Return?
The deadline for filing belated ITRs has already expired.
Now, taxpayers who failed to file their return or need to correct an earlier return can file an ITR-U.
According to the Income Tax Department, updated returns for AY 2025-26 can be filed up to March 31, 2028, after paying the applicable taxes and interest.
Tax experts say this option is useful for:
Salaried employees who missed the filing deadline.
Business owners and self-employed professionals.
Taxpayers who need to correct mistakes in an earlier return.
Extra Tax and Late Fee You May Have to Pay
Filing an updated return comes at an additional cost.
If you did not file your original return, you may also have to pay a late fee under Section 234F of the Income Tax Act.
The late fee is:
₹1,000 if your total income is up to ₹5 lakh.
₹5,000 if your total income exceeds ₹5 lakh.
Apart from this:
If the updated return is filed within 12 months, an additional 25% tax on the tax and interest payable will apply.
If it is filed after 12 months, the additional tax increases to 50%.
What Is an Updated Return (ITR-U)?
An Updated Income Tax Return (ITR-U) allows taxpayers to report missed income or correct errors in a previously filed or unfiled return.
It provides an opportunity to become tax compliant by paying the applicable tax, interest, and additional charges.
However, tax experts advise filing ITRs within the original deadline whenever possible to avoid extra costs.
Difference Between Audit and Non-Audit Cases
The Income Tax Department classifies taxpayers into two categories:
Non-audit cases: Generally include salaried employees, small business owners, and professionals whose income is within the prescribed limits.
Audit cases: Apply to businesses and professionals whose turnover or income exceeds the limits specified under the Income Tax Act.
How to File an Updated Return
To file an updated return:
Register or log in on the Income Tax Department’s official portal.
Ensure your PAN is linked with Aadhaar.
Select the correct Assessment Year and applicable ITR form.
Enter your income, deductions, exemptions, and tax details carefully.
Pay any tax due online.
Complete the process through e-verification.
Documents You’ll Need
Keep these documents ready before filing your updated return:
PAN card
Aadhaar card
Bank account details
Form 16 (for salaried employees)
Business or professional income details, if applicable
Filing an updated return may involve additional charges, but it allows taxpayers to regularize their tax records and avoid future compliance issues.
