India income tax filing: ITR-U disclosure and procedures

Taxpayers in India can utilize the updated income-tax return mechanism, known as ITR-U, under section 139(8A) of the Income-tax Act, 1961, to disclose previously omitted income. This mechanism allows for a four-year window to file updated returns for specific assessment years, a period extended from the previous two-year limit by the Finance Act, 2025.

As of October 2026, the additional tax rates for the relevant assessment years (AY 2022-23 through AY 2025-26) range from 25% to 70%, depending on the specific filing date. The ITR-U is intended for correcting omissions such as unreported bank interest, capital gains, or professional receipts, rather than reducing tax liability or increasing refunds.

For first-time filers, the process involves using the Income Tax Department’s online portal. Essential documentation includes PAN, Aadhaar, Form 16, Form 26AS, and the Annual Information Statement (AIS) to ensure accurate reporting of income, deductions, and taxes paid.