Archive · 15 Jan 2026
ITR-U Offers Second Chance for Missed Income
If you forgot to report some income in your tax return, you can still fix it by filing an updated return called ITR-U.
This gives you a second chance, but it costs more the longer you wait.
You have to pay extra tax, interest, and a penalty.
The penalty increases from 25% to 70% depending on how late you file.
It's important to use this option only to report more income, not to reduce your tax bill.
Experts advise using ITR-U to avoid bigger penalties later, especially for foreign income.
Taxpayers who missed reporting income can file an updated return (ITR-U) within four years from the end of the assessment year.
ITR-U can only be used to declare additional income that was not previously disclosed, not to reduce tax liability or claim refunds.
Penalties for filing ITR-U range from 25% to 70% of the additional tax, depending on the filing timeline.
Interest is charged at 1% simple interest per month from 1 April of the assessment year until the updated return is filed.
Experts advise using ITR-U to disclose missed income, especially foreign income, to avoid higher penalties during scrutiny.
- Who
- Taxpayers who missed reporting income in their original or revised Income Tax Returns (ITR)
- What
- Filing an updated return (ITR-U) to disclose missed income with additional tax, interest, and penalty
- When
- Within four years from the end of the relevant assessment year
- Where
- India
- Why
- To correct omissions or inaccuracies in previously filed ITRs that result in additional tax liability
- Deadline for FY25
- 31 December 2025
- Updated Return Window
- Four years from the end of the assessment year
- Penalty for Filing within One Year
- 25% of additional tax
- Penalty for Filing within Two Years
- 50% of additional tax
- Penalty for Filing within Three Years
- 60% of additional tax
- Penalty for Filing within Four Years
- 70% of additional tax
- Interest Rate
- 1% simple interest per month
- Deadline for FY2020–21
- 31 March 2026