Explanation
Updated Return under Section 139(8A) of IT Act 1961 (§264(8) in IT Act 2025) allows taxpayers to file/update a return within 24 months from the end of the relevant Assessment Year. When to use: missed income in original/revised return, wrong head of income, error that results in higher tax payable. When NOT to use: claiming a refund (not permitted), reducing tax liability, increasing losses, filing for the first time if return was not filed. Additional tax: 25% of (tax + interest payable) if filed within 12 months of end of AY; 50% if filed between 12–24 months. Form ITR-U. Only one updated return can be filed per AY. Cannot be filed if: search/survey proceedings initiated, assessment/reassessment pending, prosecution proceedings started. Verify on the income-tax portal before filing.