Revised ITR Return (ITR-U)

Overview

Section 139(8A) — introduced by the Finance Act 2022 — allows any taxpayer to file an Updated Return (ITR-U) within 2 years from the end of the relevant assessment year, enabling voluntary disclosure of omitted income, correction of head-of-income errors, or first-time filing for years where no original return was filed.

Filing ITR-U requires payment of additional tax: 25% of aggregate tax and interest if filed within 12 months from the end of the assessment year, or 50% if filed between 12–24 months. ITR-U cannot be used to claim additional deductions, reduce income, or increase refunds — it is strictly for additional income disclosure and voluntary compliance. MFiling prepares ITR-U computations to accurately determine the additional tax payable and verifies that the case falls within the eligible window (no pending scrutiny or search proceedings).

MFiling professional charges: from Rs.1,999 for ITR-U computation and filing.

Key Benefits

Voluntary Compliance Before Department Action

File ITR-U proactively when omitted income is identified — before the department issues a scrutiny or reassessment notice.

Reduces Risk of Prosecution

Voluntary disclosure through ITR-U significantly reduces the risk of prosecution under Section 276CC for wilful non-disclosure.

Corrects Wrong Head of Income

Rental income erroneously reported as business income, capital gains shown as other sources — corrected through ITR-U.

Covers 2 Previous Assessment Years

ITR-U available for the 2 most recent assessment years — access to voluntary compliance for recent omissions.

First-Time Return for Unfiled Year

For years where original ITR was never filed, ITR-U serves as the first return with additional tax surcharge.

Documents Required

Original ITR Filed for the Assessment Year (if any)

Documents for Additional Income Being Disclosed — Bank Statements, Sale Deed, Dividend Statements

Form 26AS for the Relevant Assessment Year

Computation of Additional Tax Payable (25% or 50% of incremental tax + interest)

Challan for Additional Tax Payment (must be paid before filing ITR-U)

How it Works

Identify Omitted or Incorrect Income (Day 1)

Determine what was omitted — salary, interest, capital gains, rental income, or business income.

Verify Eligibility Window (Day 1)

Confirm: no pending 143(2) scrutiny, no search/survey action, no pending reassessment — ITR-U cannot be filed in these cases.

Compute Incremental Tax Liability (Day 1–2)

Calculate additional income, tax on incremental income, and interest — then apply 25% or 50% surcharge.

Pay Additional Tax via Challan (Day 2)

Pay the computed additional tax plus 25%/50% surcharge via challan — ITR-U cannot be filed without prior payment.

File ITR-U on Income Tax Portal (Day 2–3)

Select ITR-U option on e-filing portal — available under e-File > Income Tax Returns > File Updated Return.

E-Verify and Download Acknowledgement (Day 3)

Complete e-verification and download ITR-U acknowledgement — retain for records.

Frequently Asked Questions

Can ITR-U be filed to claim a larger refund or additional deductions?

No. ITR-U can only be filed to declare additional income or correct under-reporting — it cannot be used to claim additional deductions, reduce tax liability, or increase a refund. If you missed claiming a deduction in your original ITR, the correct remedy is a Revised Return (Section 139(5)) filed before December 31 of the assessment year, or a rectification application under Section 154 for computational errors. ITR-U is exclusively for voluntary upward income disclosure.

What is the additional tax payable with ITR-U filed after 24 months?

ITR-U is not available after 24 months from the end of the relevant assessment year — the window expires completely. For AY 2023-24 (Financial Year 2022-23), the ITR-U window closes on March 31, 2026. Within 12 months, the surcharge is 25% of incremental tax+interest. Between 12–24 months, the surcharge is 50%. After 24 months, there is no voluntary disclosure mechanism — the only option is to wait for a Section 148 reassessment notice and respond to it.

Service Price

₹1,999

Starting price · GST extra

Call Expert WhatsApp Us

Voluntary Compliance Before Department Action

File ITR-U proactively when omitted income is identified — before the department issues a scrutiny or reassessment notice.

Reduces Risk of Prosecution

Voluntary disclosure through ITR-U significantly reduces the risk of prosecution under Section 276CC for wilful non-disclosure.

Corrects Wrong Head of Income

Rental income erroneously reported as business income, capital gains shown as other sources — corrected through ITR-U.

Covers 2 Previous Assessment Years

ITR-U available for the 2 most recent assessment years — access to voluntary compliance for recent omissions.

First-Time Return for Unfiled Year

For years where original ITR was never filed, ITR-U serves as the first return with additional tax surcharge.

Revised ITR Return (ITR-U)

Overview

Key Benefits

Documents Required

How it Works

Frequently Asked Questions

Related Services

Related Articles

Ready to Start or Grow Your Business?

Revised ITR Return (ITR-U)

Overview

Key Benefits

Documents Required

How it Works

Frequently Asked Questions

Related Services

Income Tax E-Filing

Business ITR Filing

Partnership Firm / LLP ITR

Company ITR Filing

Related Articles

Annual Compliance Checklist for Private Limited Companies in 2025

GST Registration: Who Needs It and How to Apply?

How to Register a Private Limited Company in India (2025 Guide)

Ready to Start or Grow Your Business?