Who cannot file an updated return?

Asked by: Joana Bruen  |  Last update: July 8, 2026
Score: 4.8/5 (59 votes)

An updated return (ITR-U) under Section 139(8A) cannot be filed if it results in a refund, reduces tax liability, or increases a loss, particularly if a search, survey, or seizure has occurred, or if an assessment is already pending or completed. It also cannot be filed if an ITR-U has already been filed for that assessment year.

Who can not file an updated return?

Pending or completed assessments: If an assessment is already pending or has been completed, updated returns under Section 139(8A) cannot be filed. Prescribed acts: If the Assessing Officer has details about the taxpayer under any prescribed acts, the updated return cannot be filed.

What are common reasons for filing an updated return?

Reasons to amend a return

  • Filing status.
  • Income.
  • Deductions.
  • Credits.
  • Dependents.
  • Tax liability.

Should I file a modified return or an updated return?

Higher taxes will be levied if you file late or incorrectly. A revised return differs from an updated return. Even if the first return results in a higher refund or losses, or a lower tax liability, it can be changed. An revised return, on the other hand, cannot be filed if it increases the loss or refunds.

Can updated return be filed only once?

(iv) Only one updated return can be filed per tax year; (v) Additional income -tax is payable under Section 267 at prescribed rates along with the updated return. These provisions are substantively the same as under Section 139(8A) of the old Act.

You are NOT Required to File a Tax Return in These Situations

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What is the penalty for updated return?

No penalty is levied for filing ITR-U when an original return has been filed but penalty u/s 234F is levied when original return has not been filed. However, an additional tax shall be levied u/s 140B. The additional tax is 25%, 50%, 60% or 70% of the tax and interest due, depending on when the ITR-U is filed.

What happens after I file an updated return?

An updated return, on the other hand, is used for voluntarily declaring additional income but comes with restrictions. It cannot reduce tax payable, increase refunds, or be filed once an assessment order is passed. Updated returns also attract additional tax and interest, unlike revised returns.

When should you not file a corrected return?

When Not to File an Amended Return

  1. You got an IRS CP2000 notice (also called an underreporter inquiry). ...
  2. You got an IRS audit notice. ...
  3. You forgot to attach a copy of your W-2. ...
  4. The IRS rejected your e-filed original return. ...
  5. You made a calculation error on your return. ...
  6. The IRS prepared a return for you.

When was the updated return introduced?

The Union Budget 2022 introduced the concept of updated returns by including the new Section 139 (8A) and Section 140B in the Income Tax Act.

What is the difference between updated and revised?

Revised implies substantial changes, restructuring, or corrections to improve a document or plan ("re-seeing" it), while updated refers to adding the latest information or making minor changes to keep it current. Revision often involves changing the core structure, whereas updates are usually cosmetic or additive.

How do I file an updated return?

Step-by-Step Guide: How to File ITR-U Online

To file ITR-U online, log in to the income tax e-filing portal using your PAN credentials. Select the relevant assessment year and choose the “Updated Return (ITR-U)” option. Next, select the applicable ITR form and specify the reason for filing ITR-U.

Is it a red flag to amend a tax return?

Submitting an amended tax return does not inherently raise red flags, but it does prompt the IRS to take a second look at your filing.

Can I get a refund by filing an updated return?

While refunds can be claimed for belated returns, they cannot be claimed for updated returns. To maximize benefits and avoid complications, taxpayers should file their returns on time and stay informed about tax deadlines.

Who should file a revised return?

Yes, any taxpayer who has already filed an original income tax return can file a revised return. You can revise it to correct errors, omissions, or incorrect details, provided the revision is done within the prescribed time limit and before the assessment is completed.

What makes the IRS reject a return?

The IRS rejects a tax return primarily due to errors in electronic filing (e-file) data, such as mismatched Social Security Numbers (SSN), misspelled names, incorrect prior-year Adjusted Gross Income (AGI), or duplicate filings. Other common causes include using an incorrect filing status, missing forms, or forgetting to enter an Identity Protection PIN.

Does an updated return affect my refund?

If you file an amended return, you should still get the refund figured on the original return. Then, if your refund is larger due to the change, you'll get the difference between the original and amended amounts.

What is the time limit for updated return?

Time Limit

An updated return can be filed within 48 months (4 years) from the end of the relevant Assessment Year. For example, if you miss filing the ITR for FY 2025-26 (AY 2026-27), you can still file the updated return until March 31, 2031.

What is changing from 1st April 2026?

Announced in the previous budget, the Income Tax Act 2025 will be effective from 1st April 2026 and will be applicable for FY 2026-27 onwards. The new Income Tax Act will replace the existing Income Tax Act, 1961, entirely with simplified language and the removal of redundant provisions.

How often does IRS update returns?

The IRS updates its "Where's My Refund?" tool once a day, typically overnight. Checking more than once every 24 hours will not show new information.

What if I don't file an updated return?

Interest on Outstanding Tax

Under Section 234A, you are charged 1% interest per month on any unpaid tax amount if the return is not filed on time. This continues until the tax is fully paid on the due date.

What are the disadvantages of amending a tax return?

Amending a tax return (using Form 1040-X) primarily risks triggering a closer IRS audit, extending the statute of limitations, and causing significant delays (20+ weeks) in processing. Other disadvantages include added costs for professional preparation, potential necessity to amend state returns, and the risk of uncovering further errors.

Who should consider amending their tax return?

When a taxpayer realizes that their federal tax return has a math error, missing income or other mistake, they should file an amended tax return. A taxpayer must file an amended return if they need to correct: Filing status.

What are the benefits of filing updated return?

The ITR-U provision was introduced in 2022 to give taxpayers a structured way to fix errors. It allows you to: File if you missed the original return, Add income you forgot to report, or.

Can an updated return be filed without an original return?

The Updated return can be filed only if the taxpayer has not filed the return of income earlier or there are errors/omissions in original filed return. The Updated return can be filed only if the taxpayer has to disclose any additional income which was missed earlier and should pay additional taxes.

Can you update a tax return after filing?

Yes, you can amend your tax return after filing by submitting Form 1040-X to correct errors like filing status, dependents, income, or credits. You generally have three years from the date you filed your original return—or two years from the date you paid the tax—to file an amendment and claim a refund.