Income Tax: Did you miss out on something when filing the income tax return (ITR) for AY 2025-26? If that is the case, you can file an updated return.
For those who are not aware, an updated income tax return can be filed up to 48 months after the end of the financial year. This means that for AY 2025-26, one could file an updated return until 31 March 2030.
What is the updated return?
An updated return is an income tax return (ITR) that permits income taxpayers to file their tax returns with an extended time period. It is meant to encourage voluntary tax compliance.
Anyone can file an updated return, barring a few circumstances, regardless of whether they have previously filed an original, belated, or revised return for the relevant assessment year.
When filing an updated return, the taxpayer is meant to give specific details. These include the following:
1. Basic details such as PAN, name and Aadhaar.
2. Details of earlier return, if filed, i.e. section, ITR form, acknowledgement number, and date of filing of the previous return.
3. Eligibility of filing an updated return.
4. Relevant ITR form selected for updated return
5. Also, the reasons for filing the updated return
When can you not file an updated return?
There are several scenarios under which an updated return cannot be filed, for instance, when the total income is a loss. Also, an updated return cannot be filed if it leads to a lower tax liability based on an earlier return.
An updated return cannot be revised as it can be filed only once for any particular assessment year.
Also, an updated return cannot be filed for the assessment year relevant to the previous year in which a search is initiated under section 132 and for any assessment year preceding such assessment year.
Frequently Asked Questions (FAQs)
Can you revise an updated return?
No, an updated return can not be revised as it can be filed only once for any particular year.
What is the amount of additional tax when an updated return is filed?
When it is filed within 12 months from the end of the assessment year, additional tax is 25% of the aggregate of tax and interest payable.
Between 12-24 months, additional tax payable will be 50% of the aggregate of tax and interest payable.
After 24 months (till 36 months), additional tax will be 60% of the aggregate of tax and interest payable.
After 36 months (before 48 months), additional tax payable will be 70% of aggregate tax and interest payable.
Can you file an updated return when return is of loss?
An updated return cannot be filed if it reflects total income as a loss. However, there is no restriction on filing an updated return if there is a loss under any head of income but the total income is positive.
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