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Feb 04, 2026
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Budget 2026 tightens ITR filing rules: Correcting old tax mistakes will cost you up to 70% extra
After the presentation of Union Budget 2026, the government, through the Finance Bill, 2026, has clarified the provisions relating to the filing of Updated Income Tax Returns (ITR-U) under the Income-tax Act, 2025. The Income Tax Department has released a set of FAQs explaining the scope, timelines and additional tax payable in such cases.
Below are the key provisions explained, based strictly on the official FAQs issued after Budget 2026.
What is an “Updated Return” under the Income-tax Act, 2025
Section 263(6) of the Income-tax Act, 2025 provides for furnishing of an updated return of income. An updated return is a return that may be furnished by a person, whether or not an original, revised, or belated return has been earlier furnished, to voluntarily disclose any income that was not reported or was inaccurately reported before, as long as certain conditions specified in the Income-tax Act, 2025 are met.
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