Return of Income Updated Return : An Opportunity Extended in Union Budget 2025

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The Tax Publishers Income Tax--Return of income Updated Return : An Opportunity Extended in Union Budget 2025 CA. Jyoti Jain The Finance Minister in Union Budget, 2025 has recently announced the extension in time period of filing updated return. The extension is made in view to further nudge the voluntary compliance by taxpayers to correct the mistakes in income tax return already filed and allow the taxpayer to file the income-tax return in case previously not filed. 1. How updated return is beneficial to taxpayers? An updated return is a type of income-tax return which gives an opportunity to taxpayers to file income tax return with extended time subject to certain conditions. An updated return can be filed, regardless of whether an original, belated, or revised return for the relevant assessment year was previously filed or not. Presently, as per provisions of section 139 (8A) of the Income Tax Act, 1961 ('the Act') effective from April 01, 2022, any person may furnish an updated return of his income or the income of any other person in respect of which he is assessable under the Act for the previous year relevant to such assessment year, in the ITR-U form along with relevant ITR Form as applicable to the taxpayer. 2. When to file the updated return? Hitherto, the period available to file an updated return was within twenty-four months from the end of the relevant assessment year. The Finance Act, 2025 has proposed to amended sub-section (8A) of section 139 of the Act so as to extend the time-limit to file an updated return from existing 24 months to 48 months from the end of relevant assessment year. Are any additional taxes to be paid while filing updated return? Section 140B provides for payment and computation of tax, interest, fee, and additional income tax on updated returns and the same is explained in below table. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--Return of income

Updated Return : An Opportunity Extended in Union Budget 2025

CA. Jyoti Jain

The Finance Minister in Union Budget, 2025 has recently announced the extension in time period of filing updated return. The extension is made in view to further nudge the voluntary compliance by taxpayers to correct the mistakes in income tax return already filed and allow the taxpayer to file the income-tax return in case previously not filed.

1. How updated return is beneficial to taxpayers?

An updated return is a type of income-tax return which gives an opportunity to taxpayers to file income tax return with extended time subject to certain conditions. An updated return can be filed, regardless of whether an original, belated, or revised return for the relevant assessment year was previously filed or not.

Presently, as per provisions of section 139 (8A) of the Income Tax Act, 1961 ('the Act') effective from April 01, 2022, any person may furnish an updated return of his income or the income of any other person in respect of which he is assessable under the Act for the previous year relevant to such assessment year, in the ITR-U form along with relevant ITR Form as applicable to the taxpayer.

2. When to file the updated return?

Hitherto, the period available to file an updated return was within twenty-four months from the end of the relevant assessment year.

The Finance Act, 2025 has proposed to amended sub-section (8A) of section 139 of the Act so as to extend the time-limit to file an updated return from existing 24 months to 48 months from the end of relevant assessment year.

Are any additional taxes to be paid while filing updated return?

Section 140B provides for payment and computation of tax, interest, fee, and additional income tax on updated returns and the same is explained in below table.