Missed income in an old return? The law now gives you 48 months to fix it – at a price that rises every 31 March. An updated return (ITR-U) lets you declare the missed income and pay tax, interest and an additional levy of 25 to 70 percent of the tax-plus-interest – cheap insurance against a reassessment that would add a 50 to 200 percent penalty and prosecution risk. Over 90 lakh taxpayers have used it, paying Rs 9,118 crore. This calculator does what no other tool does: checks your eligibility, computes the 234A/B/C interest to your actual filing month, applies the correct 140B path and band – including the new 10 percent addition for returns filed against a section 148 notice (Finance Act 2026) – and shows exactly what waiting costs.
Which assessment years can you update today?
| Assessment year | Additional tax band NOW | Current band ends | Final ITR-U deadline |
|---|
Step 1 – Eligibility check
Step 2 – Compute the total cost of updating
Break-up u/s 140B
File now vs get caught later
Updated Return (ITR-U) – Frequently Asked Questions
What is ITR-U and who can file it?
An updated return u/s 139(8A) lets ANY person – whether or not they filed the original return – declare missed income for a past year within 48 months from the end of the assessment year, on payment of tax, interest and an additional levy u/s 140B. It cannot be used to reduce tax, claim a refund or create a loss.
Which years can I update right now?
The live table at the top of this page shows the answer for today’s date. Broadly: AY 2025-26 at 25 percent, AY 2024-25 at 50 percent, AY 2023-24 at 60 percent and AY 2022-23 at 70 percent – with AY 2022-23 closing permanently on 31 March 2027. Bands step up every 1 April.
How is the additional tax calculated?
25/50/60/70 percent (by filing date) of the AGGREGATE of the tax and the 234A/B/C interest – surcharge and cess are part of “tax” for this purpose, but the 234F late fee is NOT part of the base. The 60 and 70 percent bands came with Finance Act 2025, which extended the window from 24 to 48 months.
What changed in Finance Act 2026?
Three things, effective 1 March 2026: (1) if you receive a section 148 reassessment notice, you can now respond by filing an ITR-U within the time the notice allows – at your normal band PLUS 10 percent (so 35 to 80 percent); (2) paying that addition buys statutory immunity from the section 270A penalty on that income; (3) an updated return that merely REDUCES a loss is allowed if the original loss return was filed by the due date.
I filed a return earlier. Does that change the computation?
Yes – materially. With an earlier return (the 140B(2) path) you pay tax on just the additional income, interest only on the incremental tax, and NO fresh 234F fee. With no earlier return (140B(1)), 234A interest runs from the original due date and the Rs 5,000/1,000 late fee applies. This calculator switches paths with one dropdown.
Is the late fee also multiplied by 25-70%?
No. The statutory base is “tax and interest” only. The 234F fee (Rs 5,000, or Rs 1,000 where total income is up to Rs 5 lakh) is added AFTER the additional tax, and only where no return was filed earlier.
Can I file ITR-U after receiving a 148A show-cause notice?
If the show-cause was issued after 36 months from the end of the AY – no, the door closes (unless the officer’s 148A(3) order holds it is NOT a fit case for reopening, which revives the full window). The practical lesson: in years 3 and 4 of the window it is a race – file before the notice lands. A full section 148 NOTICE is different: since Finance Act 2026 you respond via ITR-U within the notice period at +10 percent.
Why pay 25-70% extra voluntarily?
Because the alternative is worse: reassessment brings the same tax and interest PLUS a 270A penalty of 50 percent (under-reporting) or 200 percent (misreporting) of the tax, plus possible prosecution u/s 276C/276CC. The additional tax is a statutory immunity price – and the calculator shows your exact saving.
Can I get a refund or reduce my income through ITR-U?
No. An updated return cannot reduce your liability, increase your refund, or create/increase a loss. If TDS credits fully cover the missed income and nothing is payable, an ITR-U cannot be filed at all – the scheme requires a positive additional tax outgo.
How many times can I update one year?
Once. A filed ITR-U is final – it cannot be revised, corrected or replaced. Get the numbers right before filing; that is exactly what this calculator is for.
How do I pay and file?
Pay the FULL amount first via e-Pay Tax – Challan ITNS 280, self-assessment tax u/s 140B for the relevant AY – then file the applicable ITR form with Form ITR-U (Part A reasons + Part B-ATI computation and challan details) and verify. Filing without full payment makes the return defective.
What is driving ITR-U filings in 2026?
The department’s data net: NUDGE campaigns matching FATCA/CRS foreign-asset data against Schedule FA (two campaigns so far – check our RSU calculator if that is you), the crypto sweep matching 194S TDS against Schedule VDA (Rs 888 crore identified), and AIS interest/dividend mismatches. Over 90 lakh ITR-Us have been filed, paying Rs 9,118 crore.
Does interest keep growing until I file?
Yes – 234B runs at 1 percent per month (or part) until you pay, and the additional-tax band multiplies tax PLUS interest, so delay compounds twice. This calculator computes interest to your chosen payment month and shows what the next band step-up would cost.
What about FY 2026-27 onwards under the new Income-tax Act?
The scheme continues as sections 263(6) and 267 of the Income-tax Act 2025 with identical percentages, and the Finance Act 2026 additions are mirrored there. Years up to AY 2025-26 remain governed by the old Act’s 139(8A)/140B – which is what this calculator applies.