Mistakes in Your ITR? How to Correct Them with an Updated Return for AY 2025–26

Realizing an error in your income tax return (ITR) after submission can be stressful, but there’s good news — the Income Tax Department allows taxpayers to file an updated return to correct mistakes or report missed income.

What Is an Updated Return?
An updated return is a special provision that gives taxpayers an opportunity to fix errors in their original ITR. It encourages voluntary compliance, allowing individuals to rectify mistakes or disclose unreported income without waiting for a notice from the tax authorities.

For AY 2025–26, taxpayers can file an updated return within 48 months from the end of the financial year, which means the deadline is March 31, 2030. This option is available even if you have already filed an original, belated, or revised return, subject to certain conditions.

When Can’t You File an Updated Return?
There are some restrictions:

• Updated returns cannot be filed if the total income results in a loss or reduces tax liability compared to the earlier return.

• Filing is not allowed if a search or survey under Section 132 of the Income Tax Act has been conducted for that year.

• Only one updated return per assessment year is allowed; it cannot be revised once filed.

Additional Tax on Updated Returns
Filing an updated return may involve additional tax based on how late you file:

• Within 12 months: extra 25% of tax and interest payable

• 12–24 months: 50% extra

• 24–36 months: 60% extra

• 36–48 months: 70% extra

These charges act as a penalty for delayed reporting but still provide a legal way to correct mistakes and maintain compliance.

Why Filing an Updated Return Is Important
An updated return allows taxpayers to correct unintentional errors or report missed income proactively. This not only avoids potential penalties but also ensures transparency and compliance with tax laws.

If you’ve identified errors or omissions in your ITR for AY 2025–26, you still have ample time — until March 2030 — to file an updated return and get your taxes in order.

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