The Income Tax Department has formally notified the Income Tax Return (ITR) forms for Assessment Year (AY) 2026–27, with all seven forms (ITR-1 to ITR-7) released with updates aimed at improving compliance and reporting accuracy. These forms apply to income earned during FY 2025–26.
ITR-V (acknowledgement/verification form) and ITR-U (updated return) have also been notified for this year's filing cycle. Salaried individuals, pensioners, professionals and other taxpayers can begin filing their returns using the relevant forms. The due date for non-audit cases remains July 31, unless extended.
What is ITR U?
Introduced in 2022, ITR-U provides taxpayers a structured way to fix errors. It allows individuals to file returns if they missed the original deadline, add previously unreported income, or correct incorrect details in an already filed return.
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A key change this year is the extension of the time window for filing ITR-U. Taxpayers can now file updated returns within 48 months (four years) from the end of the relevant assessment year. However, this extended flexibility comes with higher additional tax if filing is delayed, reinforcing the push for timely compliance.
What's New in ITR-U Form?
The updated ITR-U form now allows taxpayers to update income or reduce losses within the extended 48-month window. A new column has been added in Part B (ATI Computation) to report additional income-tax liability where returns are filed in response to notices under Section 148 [35% or 60% or 70% or 80% of (9-7)]. This column captures higher tax rates applicable in such cases, which were not present earlier.
Deadline to File ITR-U
The time limit for filing an updated return under Section 139(8A) has been extended from two years to four years starting April 2025, as announced in Budget 2025. Accordingly, taxpayers could file updated returns for FY 2020–21 (AY 2021–22) until March 31.
Penalty on Filing Updated Returns
Filing an updated return attracts additional tax depending on the delay. The rates are structured as follows: 25% of additional tax in the first year, 50% in the second year, 60% in the third year, and 70% in the fourth year.
When Can You File ITR-U?
Taxpayers can file ITR-U under several circumstances, including:
Return not filed earlier
Income not reported correctly
Incorrect reporting of losses
Wrong heads of income selected
Reduction of carried forward losses
Reduction of unabsorbed depreciation
Adjustment of tax credits under Sections 115JB/115JC
Incorrect tax rate applied
Filing in response to a notice under Section 148 (with DIN and date details)
What is ITR-V?
ITR-V, or Income Tax Return Verification, is an acknowledgement form that serves as proof that a return has been filed with the Income Tax Department, especially in cases where returns are not verified through Aadhaar OTP or digital signature.
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The ITR-V form came into effect on March 31, and will apply to returns filed for AY 2026–27. Taxpayers must complete e-verification or submit ITR-V within 30 days of filing the return of income. If done within this period, the date of uploading the return will be treated as the date of furnishing the return.
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