India 
Canada
Filing an Income Tax Return (ITR) correctly and within timelines is a statutory duty—but genuine errors, omissions, or missed filings do occur. Recognising this reality, the Income Tax Act provides ITR-U (Updated Return)—a powerful provision that allows taxpayers to voluntarily correct past non-compliance, even after normal deadlines have expired.
At Corporate Genie, supported by a strong team of practicing Chartered Accountants, Company Secretaries, Advocates, and tax professionals, we help taxpayers use ITR-U strategically, legally, and safely.
What is ITR-U?
ITR-U (Updated Return) is a special return that allows a taxpayer to:
– File a return that was never filed, or
– Update an already-filed return to correct errors or disclose missed income
It is governed by Section 139(8A) of the Income Tax Act, 1961, and is designed to encourage voluntary and honest tax compliance.
In essence, ITR-U provides a lawful second (and extended) opportunity to set things right.
Why Was ITR-U Introduced?
The objective behind ITR-U is to:
– Promote self-disclosure of income
– Reduce tax litigation and scrutiny-based assessments
– Provide taxpayers a corrective path before penalties arise
– Strengthen trust between taxpayers and tax authorities
Instead of waiting for notices, taxpayers can proactively regularise their position.
Who Can File ITR-U? (Applicability)
ITR-U can be filed by:
– Individuals
– HUFs
– Firms / LLPs
– Companies
– Other eligible taxpayers
Common situations where ITR-U is useful:
– Original return not filed
– Income missed or under-reported
– Wrong head of income selected
– Incorrect exemptions or deductions claimed
– Incorrect carry-forward of losses
– Mismatch in income or tax computations
Updated Time Limit: When Can ITR-U Be Filed?
✅ Amended Time Limit (Effective 1 April 2025):
An ITR-U can now be filed within 48 months (4 years) from the end of the relevant Assessment Year.
Additional tax payable depends on delay:
– Up to 12 months: 25% of tax + interest
– 12–24 months: 50% of tax + interest
– 24–36 months: 60% of tax + interest
– 36–48 months: 70% of tax + interest
📌 Key takeaway: The window is wider—but the cost increases with time. Early correction saves money.
When ITR-U Cannot Be Filed
ITR-U is not allowed if:
– It results in a refund or reduction of tax liability
– Search, survey, or prosecution proceedings are initiated
– Assessment or reassessment is already completed
– It leads to increase in carried-forward loss or reduction in income.
How to File ITR-U
The process broadly involves:
1. Detailed review of past records and returns
2. Identification of omissions or errors
3. Re-computation of total income and tax
4. Calculation of additional tax, interest, and fee
5. Filing Form ITR-U along with the relevant ITR electronically
Precision is critical—any incorrect disclosure can invalidate the filing.
Why File ITR-U with Corporate Genie?
At Corporate Genie, we go beyond form filing and focus on risk-free compliance.
Our value proposition:
– 👨💼 Experienced CA, CS, Advocates & tax specialists
– 🔍 Comprehensive review of past filings
– 📊 Accurate tax, interest & additional levy computation
– ⚖️ Legal eligibility check under Section 139(8A)
– 🛡️ Notice-risk minimisation approach
– 🤝 End-to-end assistance with proper documentation
Whether you are an individual, professional, startup, or corporate entity, our structured approach ensures your ITR-U is compliant, defensible, and final.
Conclusion
ITR-U is a powerful compliance opportunity—now extended up to 4 years.
It allows taxpayers to voluntarily correct mistakes, disclose income, and avoid future consequences—but only if handled with expert care.
If you believe your earlier return was incorrect or not filed at all, don’t wait for a notice.
📌 Connect with Corporate Genie—your trusted partner in tax, compliance, and corporate advisory—and let our experts guide you on when, why, and how to file ITR-U correctly.
Corporate Genie – Enabling Compliant Growth with Confidence
