ITR-U: CBDT Releases Updated Income Tax Return to update income/reduce loss within 48 months

ITR-U: CBDT Releases Updated Income Tax Return to update income/reduce loss within 48 months

The Ministry of Finance (Department of Revenue) has issued a notification dated 30th March, 2026 notifying Income-tax (Ninth Amendment) Rules, 2026. As per the notification, Updated Income Tax Return (ITR-U) to update income/reduce loss within 48 months has now been released in line with Finance Act 2026.

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The new rules will be known as Income-tax (Ninth Amendment) Rules, 2026. These rules are applicable from the date of their publication.

What are various Reasons for updating your income?

Return previously not filed
Income not reported correctly
Loss not reported correctly (In case of reduction of loss) Wrong heads of income chosen
Reduction of carried forward loss
Reduction of unabsorbed depreciation
Reduction of tax credit u/s 115JB/115JC
Wrong rate of tax
Return in response to notice u/s 148

Additional Tax for late filing of ITR-U

Although the government has extended the time limit to four years, filing an ITR-U comes with an extra cost. You must pay the regular tax and interest, along with an additional tax. If you file within 12 months, you need to pay 25% extra on the tax and interest. This increases to 50% if filed within two years, 60% within 36 months, and 70% if filed between 36 and 48 months.