ITR-U Form Explained AY 2026-27: Your Questions Answered

ITR-U is India’s voluntary disclosure mechanism: a way to correct past income tax returns without waiting for a tax notice. Over 91.76 lakh updated returns have been filed since its introduction in 2022, collecting Rs. 9,118 crore in additional taxes. Budget 2025 extended the filing window from 2 years to 4 years, effective April 2025 under CBDT Notification 49/2025.

Key Takeaways

  • Over 91.76 lakh taxpayers filed ITR-U since 2022; together they paid Rs. 9,118 crore in voluntary additional taxes.
  • Budget 2025 extended the ITR-U window from 2 years to 4 years, effective April 2025.
  • Four additional tax slabs apply: 25% (year 1), 50% (year 2), 60% (year 3), 70% (year 4).
  • AY 2021-22 window closed on March 31, 2026 permanently. Only AY 2022-23 through AY 2025-26 are open in May 2026.
  • ITR-U cannot be used to claim a refund or reduce tax liability. It only works when you owe more tax than you’ve already paid.
  • Pay Section 140B additional tax via Challan 300 BEFORE submitting the ITR-U form.

What exactly is ITR-U and what is Section 139(8A)?

ITR-U is governed by Section 139(8A) of the Income Tax Act and allows any taxpayer to voluntarily update a previously filed return, or file for the first time if no original return was filed, by declaring income that was missed or under-reported. The valid reasons for filing are: return previously not filed, income not reported correctly, wrong heads of income, reduction of carried-forward loss, reduction of unabsorbed depreciation, wrong rate of tax, and “others.”

Who can file ITR-U?

Yes. Individuals, HUFs, partnership firms, LLPs, companies, AOPs, BOIs, and any other person can file ITR-U for the eligible assessment years. The form is not restricted by taxpayer category. However, ITR-U cannot be filed if:

  • A search, survey, or requisition has been initiated against you
  • An assessment or reassessment order has already been passed for that year
  • The updated return would result in a refund or reduce your existing tax liability
  • Prosecution proceedings have been initiated
  • Information has been received under exchange of information with foreign jurisdictions

Which assessment years are open for ITR-U in May 2026?

  • AY 2021-22: CLOSED (window ended March 31, 2026)
  • AY 2022-23: OPEN until March 31, 2027 (Year 4 slab — 70% additional tax)
  • AY 2023-24: OPEN until March 31, 2028 (Year 3 slab — 60% additional tax)
  • AY 2024-25: OPEN until March 31, 2029 (Year 2 slab — 50% additional tax)
  • AY 2025-26: OPEN until March 31, 2030 (Year 1 slab — 25% additional tax)

How is the Section 140B additional tax calculated?

The additional tax is calculated on the “tax and interest payable” — meaning the tax due on the newly disclosed income, plus applicable interest under Sections 234A, 234B, and 234C — after adjusting for any TDS credits and advance tax paid. Then:

  • Year 1 (within 1 year of end of AY): 25% of (tax + interest payable)
  • Year 2 (between 1-2 years): 50% of (tax + interest payable)
  • Year 3 (between 2-3 years): 60% of (tax + interest payable)
  • Year 4 (between 3-4 years): 70% of (tax + interest payable)

Pay via Challan 300 on the income tax portal. Generate the challan, pay via net banking or UPI, and note the BSR code and challan serial number before filing ITR-U.

How to file ITR-U: Step-by-step

  1. Download and review your AIS and Form 26AS to identify the income that was missed
  2. Prepare the corrected income computation for the relevant AY
  3. Calculate the additional tax payable under Section 140B
  4. Pay the additional tax via Challan 300 on incometax.gov.in
  5. Log in to the income tax portal and go to e-File > Income Tax Returns > File Updated Return
  6. Select the relevant AY and the correct reason code
  7. Fill in the updated income details and attach the original ITR acknowledgment
  8. Enter the Challan 300 payment details
  9. Submit and e-verify using Aadhaar OTP or DSC

Common ITR-U mistakes to avoid

  • Selecting the wrong reason code — choose the most specific applicable code
  • Paying tax AFTER filing — Section 140B payment must precede ITR-U submission
  • Trying to claim a refund via ITR-U — the form is rejected if it results in a refund
  • Missing the year-specific deadline — the 4-year window is fixed; there are no extensions
  • Filing for AY 2021-22 — this window closed March 31, 2026 and cannot be reopened

Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. Consult a qualified Chartered Accountant for advice specific to your situation. All figures and dates are based on information available as of May 2026.