Taxpayers often make minor mistakes while filing their ITR, such as omitting an income item, incorrectly listing a deduction, or failing to include bank interest. Previously, such cases posed a risk of receiving a notice from the tax department, but now the government has provided relief to taxpayers.

You can now correct your mistake by filing an updated income tax return. This opportunity is available to everyone, regardless of whether they previously filed an original, belated, or revised return.

What is an updated return?

An updated return is a provision that allows taxpayers to correct a mistake or add missing income. It is introduced under Section 139(8A). The government's goal is to encourage more people to voluntarily comply with taxes and avoid penalties or notices later.

What is the last date for filing updated returns?
The rules regarding the last date for filing updated returns were changed in the budget. The deadline for filing updated returns has been extended to four years from the last date of the assessment year. This means you can file updated returns for up to four years. For example, the last date for filing updated returns for the financial year 2024-25, or assessment year 2025-26, will be March 31, 2030.

What documents are required when filing updated returns?
When filing a return, you must provide certain important information:

PAN, name, and Aadhaar number

Section of the previously filed return, ITR form, acknowledgment number, and filing date

Reason for filing an updated return
New ITR form and details
Who can file an updated return?
An updated return can be filed by every taxpayer, whether they have filed an income tax return or not. There are a few exceptions where this return cannot be filed. For example:

If you have a loss in your total income.

If this reduces your tax liability compared to the previous year.

If the Income Tax Department has conducted a search operation against you.

If an updated return has already been filed for a given year, it cannot be filed again.

Once filed, it cannot be corrected again.

An updated return can only be filed once. This means it cannot be revised. Therefore, carefully fill in all the information before filing it.

How much additional tax will you have to pay?
If you file an updated return, you may have to pay additional tax. This depends on how late you are in filing your return.

Filing Timeline Additional Tax Rate
25% of tax and interest within 12 months
50% of tax and interest between 12-24 months
60% of tax and interest between 24-36 months
70% of tax and interest between 36-48 months

Why is it important to file an updated return?
Filing an updated return can help you avoid notices, penalties, and interest from the tax department. This is beneficial for both the government and taxpayers, as it brings transparency to the tax system.

Can I disclose a loss?
If your total income is negative, meaning you have a loss, you cannot file an updated return. However, if you have a loss in one head and the rest of your income is positive, you can file it.

What is the step-by-step process?
Log in to the Income Tax Portal.
Select the "File Updated Return" option.
Enter the required details – PAN, Aadhaar, and ITR Type.
Enter the updated income and tax information.
Enter the additional tax and interest amount.
Submit the return and download the acknowledgment.

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