Updated Return (ITR-U) Extended to 48 Months: The Biggest Taxpayer Benefit in IT Act 2025 — Practical Guide
Quick Summary Box
| Parameter | Old Position (Section 139(8A), IT Act 1961) | New Position (Section 263, IT Act 2025) |
|---|---|---|
| Window for filing updated return | 24 months from end of relevant AY | 48 months from end of relevant Tax Year |
| Additional tax for filing at 12 months | 25% of tax + interest | 25% of tax + interest |
| Additional tax for 13–24 months | 50% of tax + interest | 50% of tax + interest |
| Additional tax for 25–36 months | Not available | 60% of tax + interest |
| Additional tax for 37–48 months | Not available | 70% of tax + interest |
| Available if return already filed? | Yes — to add additional income | Yes — same |
| Available if assessment completed? | No | No |
| Available if search conducted? | No | No |
| Prosecution protection | Yes — if tax paid voluntarily | Yes — enhanced protection |
ITR-U (Updated Return) Now 48 Months Under IT Act 2025 — Complete Guide: Who Should File, When to File, Tax Rates, and Prosecution Protection (Section 263)
When the Finance Act 2022 introduced the Updated Return (ITR-U) under Section 139(8A) of the Income Tax Act, 1961, it was hailed as a landmark voluntary disclosure mechanism — allowing taxpayers to come clean about unreported income without facing prosecution, by paying a premium tax (25-50% additional tax on the incremental liability). The window was 24 months from the end of the relevant Assessment Year.
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