Updated Return (ITR-U) under Section 263(6) — Who Can File, by When, at What Cost
Quick answer: An updated return lets you declare missed income or correct a return up to 48 months from the end of the financial year following the tax year — now Section 263(6) of the Income-tax Act 2025 (ex-139(8A)). The price is additional tax under Section 267(5): 25% of the tax plus interest if filed in the first year, 50% in the second, 60% in the third and 70% in the fourth. It cannot be used to claim or increase a refund, declare or increase a loss, or where assessment or reassessment is pending; there is no filing fee. Returns being updated today relate to 1961-Act years, so the old form numbers still appear on the portal.
Last verified 4 October 2026 — rules on this page checked against the current notifications. We update it the day a rule changes.
The window and the price
| Filed within (from end of the FY following the tax year) | Additional tax (s.267(5)) |
|---|---|
| Up to 12 months | 25% of aggregate tax + interest |
| 12–24 months | 50% |
| 24–36 months | 60% |
| 36–48 months | 70% |
What an updated return cannot do
- Claim or increase a refund; declare or increase a loss (a 2026 Finance Bill proposal would allow reducing a loss — final wording to be confirmed)
- Be filed where assessment or reassessment is pending or completed for that year (s.263(6)(c)(v)), or after search/survey consequences attach
- Be filed more than once for the same year
What we do
- Year-wise exposure map: which years are still open, what each costs at 25/50/60/70%, and where a notice risk makes early filing cheaper
- Reconciliation with AIS/TIS, 26AS and GST before filing; interest computation under s.423–425
- Where a notice has already arrived, the right route is a reply or an appeal, not an updated return
Section and form numbers are quoted from the Income-tax Act, 2025, the Income-tax Rules, 2026 and CBDT's form FAQs; anything not yet confirmed on an official page is marked and checked at filing, never estimated.
Talk to us before you file anything
Frequently asked questions
What is the time limit for an updated return?
48 months from the end of the financial year following the tax year — Section 263(6) of the 2025 Act (ex-139(8A), extended by the Finance Act 2025).
How much additional tax is payable?
25% of the tax plus interest in the first 12 months, 50% in the second year, 60% in the third and 70% in the fourth (s.267(5)).
Can an updated return claim a refund?
No — nor can it declare or increase a loss.
Can I file if I never filed the original return?
Yes, an updated return can be filed even where no original return was filed, subject to the bars.
Can I file after a reassessment notice?
Not under the current bars where assessment or reassessment is pending; a 2026 proposal would relax this — confirmed at filing.
Is there a government fee?
No — only the additional tax, interest and any late fee attached to the original default.
Which section applies now?
Section 263(6) of the Income-tax Act 2025 for the right to file; s.267(5) for the additional tax.
Does an updated return protect me from penalty?
It regularises the income before the department acts; penalty exposure for the original default is assessed on the facts — we advise case by case.