ITR-U Filing Deadline Nears: Last Chance to Correct Tax Errors by March 31

• Taxpayers can file an Updated Income Tax Return (ITR-U) to correct mistakes or disclose unreported income.
• The March 31 deadline is crucial to avoid higher penalties and potential legal complications.
• ITR-U can be filed within 48 months from the end of the relevant assessment year, but additional tax liability increases with delay.
• Budget 2026 introduces changes allowing ITR-U even after reassessment (with 10% additional tax) and permitting loss set-off.
• Missing ITR-U itself doesn't incur a penalty, but not correcting errors risks notices, best-of-judgment assessments, or penalties up to 200% of tax evaded.