The below content is purely for informational purposes and is not intended to constitute advisory of any kind. Please note, these are in-depth articles which are best viewed on large screen devices like laptops, desktops and tablets. The position reflected in this article has been updated as of November 15, 2025.

Until recently, taxpayers could file their returns in three formats: Original, Belated, and Revised. To encourage voluntary compliance and reduce litigation, the Government introduced the concept of an Updated Return (ITR-U) in Budget 2022.

This facility allows taxpayers—including NRIs—to file or update their return of income within extended timelines, by paying applicable tax, interest, and an additional levy. It encourages taxpayers correct past mistakes voluntarily, promoting smoother interactions with Indian tax authorities.

Eligibility, timeline and Procedure

Who can file an updated return: Any taxpayer, including NRIs, may file an Updated Return if:

• It results in additional tax liability payable to the government
• It is filed within 48 months (4 years) from the end of the relevant assessment years.

For instance, if an NRI missed filing their return for AY 2023–24, they may still do so using ITR – U, within March 31, 2028.

Who Cannot File an Updated Return?

An Updated Return is not permitted in the following situations:

• If an Updated Return for that year has already been filed.
• To file a NIL return or declare a loss.
• To claim or enhance a refund.
• To reduce the overall tax liability.
• If a search or survey has been initiated by the Income Tax department
• If a notice for seizure or requisition of books/ assets has been issued.
• If prosecution proceedings have been initiated.
• If assessment, reassessment, revision, or recomputation is ongoing or completed.
• If the Assessing Officer has received information under certain Acts (e.g. Benami, PMLA, Black Money, SAFEMA).
• If information has been received from a foreign country under a treaty and communicated to the assessee.
• If a show-cause notice under section 148A (for conducting an enquiry before reassessment) has been issued after 36 months from the end of the relevant assessment year, unless the Assessing Officer concludes that reassessment is not warranted.

 

Additional Tax Liability on Update Returns

When filing an Updated Return, a taxpayer must bear an additional tax liability. The amount of this additional tax depends on how late the Updated Return is filed:

Please note, tables are best viewed on desktops or in landscape mode on mobile phones. On mobile phones, please swipe to view all content.

Filing an Updated Return is a one-time opportunity for taxpayers to correct past non-compliances. Since it is treated as a final disclosure before the Income Tax Department, NRIs are strongly advised to consult a qualified tax professional to ensure accurate reporting.

Disclaimer:

The contents of this article/infographic are meant solely for informational purposes. They are generic in nature and are not intended to serve as a substitute for specific advice on any matter whatsoever. The information is subject to change based on amendments in law and policy. ICICI Bank Limited/its affiliates shall not be liable for any direct or indirect losses arising from any decision taken on the basis of this content. Please consult your tax advisor before making any decision.