Revised ITR vs ITR-U: What’s the Difference and When to File Each
- Dipali Waghmode
- 1 day ago
- 8 min read
Filing income tax returns accurately is crucial, but errors and missed disclosures can happen. To address such issues, the Income Tax Act offers two solutions—Revised ITR under Section 139(5) and ITR-U under Section 139(8A). Both serve distinct purposes, depending on when and why corrections are needed. With recent updates in the Finance Act 2025 extending the ITR-U filing window to 48 months, taxpayers now have a broader opportunity to fix errors, declare missed income, and stay compliant under the law.
Table of Contents
What is a Revised ITR under Section 139(5)?
A Revised ITR is a return that allows taxpayers to correct errors or omissions in their previously filed income tax return. Under Section 139(5) of the Income Tax Act, 1961, taxpayers who discover mistakes such as missed income, incorrect deductions, or inaccurate reporting can file a revised version of their return before the specified deadline. The purpose is to ensure that the data submitted to the Income Tax Department is accurate and complete.
The time limit to file a Revised ITR is typically up to December 31 of the relevant assessment year or before the completion of assessment, whichever is earlier. For example, for FY 2024-25 (AY 2025-26), the deadline for filing a Revised ITR would be December 31, 2025. There is no restriction on the number of times a return can be revised within this time frame. However, each revised return replaces the previous one, making the last filed version final. Revised ITRs do not attract additional penalties if filed within the allowed period, provided they are genuine corrections and not attempts to conceal income.
What is ITR-U (Updated Return) under Section 139(8A)?
ITR-U, also known as an Updated Return, was introduced to give taxpayers a second chance to correct or disclose missed income even after the deadline for filing or revising returns has passed. Under Section 139(8A) of the Income Tax Act, this facility allows individuals to update their returns up to 48 months from the end of the relevant assessment year.
This extended window helps taxpayers voluntarily correct unreported income, missed deductions, or wrong claims, even if they had not filed a return earlier. The Finance Act 2025 extended this period from 24 to 48 months, offering four years of flexibility for compliance. However, ITR-U cannot be used to claim additional refunds or reduce losses; it is primarily meant to rectify underreporting and avoid scrutiny.
For instance, if a taxpayer forgot to report rental income for FY 2022-23, they can still file an ITR-U for AY 2023-24 before March 31, 2028. The process involves paying additional tax and interest as per the delay period. This system promotes voluntary compliance and transparency in reporting income.
Key Differences Between Revised ITR and ITR-U
Criteria | Revised ITR | ITR-U (Updated Return) |
Relevant Section | Section 139(5) | Section 139(8A) |
Purpose | Correction of errors or omissions in a filed return | Updating return after deadline or reporting unfiled income |
Time Limit | Before December 31 of the assessment year or assessment completion | Within 48 months from the end of the relevant assessment year |
Penalty/Additional Tax | No additional tax if filed within the time limit | Additional tax of 25%, 50%, 60%, or 70% of due tax depending on delay |
Refund Eligibility | Can increase refund | Cannot claim or increase refund |
Loss Adjustment | Allowed within time limit | Not allowed to increase or carry forward losses |
Form Used | Same as original ITR form | Separate ITR-U form |
Multiple Filings | Can file multiple times before deadline | Only one ITR-U can be filed for each year |
Revised ITR serves as a correction mechanism within the same assessment year, while ITR-U acts as an extended compliance tool for post-deadline corrections.
When Should You File a Revised ITR?
A Revised ITR should be filed when an error is detected in the original return but the revision window is still open. Common reasons include:
Missed disclosure of income such as interest, dividends, or rent
Incorrect deduction or exemption claims
Typing or calculation errors in total income or TDS details
Changes due to updated Form 26AS or AIS data
Wrong bank account or address entries
For example, if a taxpayer realizes in September 2025 that they missed including bank interest income in their FY 2024-25 return, they can file a Revised ITR before December 31, 2025. This correction ensures that the taxpayer remains compliant and avoids future notices.
When Should You File ITR-U?
ITR-U should be filed when the time to revise a return has passed, or when the return was not filed at all. It covers situations where taxpayers:
Forgot to declare certain income sources
Did not file the original or revised return before the due date
Need to adjust reported losses, depreciation, or MAT credit
Discovered errors after the December 31 deadline
Wish to voluntarily disclose income to avoid penalties or prosecution
The ITR-U system allows taxpayers to correct their financial records up to four years after the assessment year ends. However, once a notice under Section 148A (for income escaping assessment) is issued, filing ITR-U is not permitted for that year.
Updated Deadlines for FY 2024-25 (AY 2025-26)
The government has announced the following deadlines for FY 2024-25 (AY 2025-26):
Original and Revised ITR Filing: On or before December 31, 2025
ITR-U Filing: Up to March 31, 2030 (48 months after the end of AY 2025-26)
Non-audit taxpayers: Original filing extended to September 15, 2025
These extensions simplify compliance and ensure that taxpayers have sufficient time to correct or update their returns.
Penalties and Additional Taxes under ITR-U
ITR-U filings come with additional tax obligations depending on how late the correction is made. The applicable structure under the Finance Act 2025 is as follows:
Delay Period | Additional Tax Payable on Due Tax |
Within 12 months from end of AY | 25% |
Within 24 months | 50% |
Within 36 months | 60% |
Within 48 months | 70% |
This additional tax is over and above the standard tax and interest payable under Section 140B. The higher the delay, the greater the cost, encouraging timely corrections. Filing ITR-U proactively helps taxpayers avoid departmental scrutiny, penalties, and potential prosecution.
Common Mistakes to Avoid While Filing Revised ITR or ITR-U
Filing a Revised ITR or ITR-U requires accuracy and attention to detail, as even small mistakes can lead to rejections, notices, or penalties. Many taxpayers unknowingly repeat certain errors that compromise the effectiveness of their corrections. Understanding these common mistakes and avoiding them ensures a smoother filing process and better compliance with the Income Tax Department’s requirements.
Using the wrong assessment year or ITR form is one of the most frequent errors. Each financial year corresponds to a specific assessment year, and choosing the wrong one can result in rejection of the return. Similarly, selecting an incorrect ITR form based on income type or filing category—such as using ITR-1 for business income instead of ITR-3—can invalidate the submission. Always confirm the correct form and assessment year before filing.
Another major issue is ignoring discrepancies between the Annual Information Statement (AIS), Tax Information Summary (TIS), and Form 26AS. These documents reflect income, TDS, and high-value transactions reported to the department. If the data in your return does not match these records, it may trigger an automated notice. Before filing a Revised ITR or ITR-U, carefully cross-check all sources of income and taxes paid to ensure consistency.
Many taxpayers also forget to verify their return after submission. An unverified return is treated as invalid by the Income Tax Department, meaning it will not be processed. Verification can be done electronically via Aadhaar OTP, net banking, or by sending a signed ITR-V to CPC Bengaluru. Always complete verification within 30 days of filing to validate your return.
Attempting to increase refunds using ITR-U is another common mistake. The ITR-U mechanism is meant for disclosing missed income or errors that led to underreporting, not for claiming additional refunds or deductions. Trying to use it for refund enhancement may attract scrutiny or rejection by the system.
Missing revised deadlines or filing incomplete details can also cause problems. The deadline for filing a Revised ITR is December 31 of the assessment year, while ITR-U can be filed within 48 months. Submitting incomplete or inaccurate details, such as missing bank account information or mismatched income figures, can lead to delays or notices. Always review your data thoroughly before submission.
Failing to reconcile total income with bank statements, salary slips, and investment proofs is another pitfall. Inconsistencies between your reported income and actual financial records can raise red flags during processing or scrutiny. Ensure that all income sources—salary, interest, capital gains, rent, or dividends—are properly included and supported by documentation.
Lastly, overlooking additional tax liability under Section 140B while filing ITR-U is a critical error. The ITR-U requires taxpayers to pay not only the additional tax on undeclared income but also interest and an extra percentage based on the delay period. Failing to compute or pay this correctly may render the filing invalid.
Ensuring data accuracy, verifying submissions promptly, and adhering to timelines are essential to maintain compliance. Properly filed Revised ITRs and ITR-Us help taxpayers rectify genuine mistakes, avoid penalties, and build a transparent record with the Income Tax Department.
Role of TaxBuddy in Simplifying Revised and Updated ITR Filing
TaxBuddy simplifies both Revised and Updated Return filing by using an AI-assisted platform that automatically detects discrepancies between filed returns and government data (AIS, Form 26AS, and TIS). TaxBuddy’s system guides users on whether they should file a Revised ITR or ITR-U based on their eligibility and timing.
Users can either file independently using the self-filing option or choose the expert-assisted plan where professionals handle revisions, additional tax computations, and ensure compliance with the latest rules. With reminders for deadlines, real-time error detection, and secure filing features, TaxBuddy ensures a seamless and error-free experience for every taxpayer.
Conclusion
Understanding when to file a Revised ITR versus an ITR-U can help avoid penalties and scrutiny while maintaining compliance. A Revised ITR is ideal for quick corrections within the same assessment year, whereas ITR-U serves as a final opportunity to report omitted income or unfiled returns up to four years later.
For a smooth and accurate tax filing experience, download the TaxBuddy mobile app for guided, secure, and hassle-free assistance in filing your Revised or Updated ITR.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy provides both self-filing and expert-assisted plans, allowing taxpayers to choose between independent filing or CA-guided filing based on their comfort level.
Q2. Which is the best site to file ITR?
The best platforms for filing ITR include TaxBuddy and the official Income Tax e-filing portal. TaxBuddy provides a simplified, AI-driven process that ensures accuracy and compliance.
Q3. Where to file an income tax return?
An income tax return can be filed on the Income Tax Department’s official e-filing portal or via trusted platforms such as TaxBuddy, which automate and streamline the process.
Q4. Can I file both Revised ITR and ITR-U for the same year?
No, multiple Revised ITRs can be filed within the deadline, but only one ITR-U is allowed per assessment year.
Q5. What is the time limit for filing a Revised ITR?
A Revised ITR must be filed before December 31 of the assessment year or before completion of assessment, whichever is earlier.
Q6. What is the time limit for filing ITR-U?
ITR-U can be filed within 48 months from the end of the relevant assessment year as per Budget 2025 amendments.
Q7. How much additional tax is payable under ITR-U?
The additional tax ranges from 25% to 70% of the due tax depending on the delay period, increasing progressively every 12 months.
Q8. Can I claim deductions under Section 80C or 80D while filing ITR-U?
Yes, eligible deductions missed in the original filing can be claimed through ITR-U if they relate to the same financial year.
Q9. Can I use ITR-U to increase my refund amount?
No, ITR-U cannot be used to claim or increase refunds; it is meant to correct income reporting or tax payment errors.
Q10. What happens if a taxpayer ignores filing a Revised ITR or ITR-U after discovering an error?
Failure to correct errors can lead to scrutiny, penalty notices, or interest charges from the Income Tax Department.
Q11. Can a Revised ITR be filed after the assessment is completed?
No, once an assessment is completed, a Revised ITR cannot be filed. The taxpayer must file an ITR-U instead if eligible.
Q12. How does TaxBuddy help in filing ITR-U?
TaxBuddy’s AI-based tools identify unreported income, guide users through the ITR-U form, compute additional tax, and ensure complete compliance with the latest tax laws.
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