If you forgot to include some income or made an error while filing your income tax return (ITR) for the Assessment Year (AY) 2025–26, you still have a second chance to set things right. The Income Tax Department allows you to file an updated return, a special provision that lets taxpayers correct mistakes or declare missed income even after submitting the original return.
An updated return gives individuals an extended window of up to 48 months, or four years, from the end of the relevant financial year to make corrections. For AY 2025–26, that means the deadline to file an updated return is March 31, 2030. Even if you’ve already filed an original, belated, or revised return, you can still submit an updated one unless you fall under certain restrictions.
The idea is to encourage voluntary compliance, helping taxpayers come clean without harsh penalties or legal complications.
There are a few scenarios where this option doesn’t apply. You can’t file an updated return if your total income shows a loss or the update would reduce your tax liability compared to the earlier return. It also cannot be filed in cases where a search or survey has been conducted under Section 132 of the Income Tax Act during the relevant financial year. Moreover, an updated return can be filed only once for each assessment year and cannot be revised after submission.
While the updated return gives breathing space, it comes with an added cost. The later you file, the higher the additional tax. If the updated return is filed within 12 months from the end of the assessment year, an extra 25% of the total tax and interest payable must be paid. If it is filed between 12 and 24 months, this increases to 50%.
Between 24 and 36 months, the additional tax rises to 60%, and between 36 and 48 months, it goes up to 70%. This additional amount acts as a late disclosure fee but still offers a legitimate route to fix errors before the tax department steps in.
An updated return helps taxpayers correct oversights and declare previously missed income before the authorities issue a notice. By voluntarily disclosing the correct details, you maintain transparency, avoid penalties, and stay on the right side of the law.
So, if your ITR for AY 2025–26 has missing details or under-reported income, you’ve got until March 31, 2030, to file an updated return and clean up your tax record — no panic needed.