🔄 Revised Return vs Updated Return: What’s the Difference and When to Use?

Filing your Income Tax Return (ITR) is a critical step toward staying compliant with Indian tax laws. But what if you realize later that there’s a mistake in the return already filed or you missed reporting some income? Don’t worry — the Income Tax Act provides remedies in the form of Revised Return and Updated Return.

Though both serve the purpose of correcting or updating your filed ITR, they are fundamentally different in their scope, timeline, and implications.

 Let’s decode the key differences between Revised Return and Updated Return, and when you should use each.

📌 What is a Revised Return?

A Revised Return is filed to rectify mistakes or omissions in the original return filed under Section 139(1).

🔍 Key Features:

• ✅ Eligibility: You must have originally filed the return within the due date.

• 🕒 Time Limit: You can revise the return before 31st December of the relevant Assessment Year (AY).
  (For AY 2025–26, deadline is 31st Dec 2025)

• Who Can File? Only those who filed their original return within the due date under Section 139(1).

• Number of Revisions: No limit; you can revise multiple times until the deadline.

• Reasons: Mistakes, incorrect disclosures, forgotten deductions, etc. Example: If you filed your return on time for AY 2025–26 and forgot to claim a deduction under Section 80C, you can file a revised return by 31st December 2025.

• 💰 No additional tax liability or penalty unless the revised figures result in higher taxes.

• 🧾 Examples of use:

• Missed reporting an income

• Wrong deduction claimed

• Typographical or clerical errors

📌 What is an Updated Return?

An Updated Return under Section 139(8A) was introduced in Budget 2022 to promote voluntary compliance. It allows taxpayers to declare previously omitted income even after the deadline for revised return is over. And in Budget 2024, this window has been extended to 4 years, a significant relief for taxpayers who discover errors much later.

🔍 Key Features:

• ✅ Eligibility: Any person (whether or not they filed original ITR).

• Who Can File? Any taxpayer—regardless of whether a return was filed previously.

• Purpose: To declare additional income, correct under-reporting, or omissions.

• 🕒 Time Limit: Can be filed within 48 months from the end of the relevant Assessment Year.
  (For AY 2023–24, deadline is 31st March 2028)

• 💰 Extra Cost: You’ll have to pay additional tax:

  • 25% of the tax and interest if filed within 12 months

  • 50% of the tax and interest if filed after 12 months but before 24 months

  • 60% of the tax and interest if filed after 24 months but before 36 months

  • 70% of the tax and interest if filed after 36 months but before 48 months

• ❌ Not allowed when:

• It reduces your tax liability

• It results in a refund

• It involves issues under search/seizure

🔁 Key Differences at a Glance

Aspect	Revised Return	Updated Return
Section	139(5)	139(8A)
Time Limit	Till 31st Dec of AY	Within 48 months from end of AY
Original ITR filing mandatory?	Yes	No
Purpose	Correction of errors	Reporting omitted income
Additional Tax	No	Yes – 25%/50%/60%/70%   of tax + interest
Refund allowed?	Yes	No
Reduces tax liability?	Yes	No
Filing mode	Online	Online (via ITR-U form)

 

🧠 When Should You Use Which?

👉 Use a Revised Return:

• If you've already filed your ITR on time and found an error or omission before 31st December of the AY.

👉 Use an Updated Return:

• If you missed the deadline for filing or revising your return, or you want to voluntarily disclose previously unreported income — even if no return was filed earlier.

✅ Conclusion

Both Revised Return and Updated Return offer a second chance — but the key is timing and intention. While a revised return helps you correct genuine mistakes without penalty, an updated return is meant for honest late disclosures, albeit with a cost.

So, act wisely based on your situation. When in doubt, always consult a tax expert to avoid penalties or notices.

🧾 Need help revising or updating your ITR? Contact the team at Tax Manthan — we’re here to simplify your tax journey!