Answer

1. F

   Facts

   From 1 March 2026, an updated return may be filed in response to a Sec 148 notice within the time allowed in the notice, with a further 10% additional tax. Income covered this way is protected from the under-reporting penalty.

2. P

   Provisions and law

   • Sec 139(8A), Income-tax Act 1961 (now Sec 263(6), Income-tax Act 2025)Updated return within 48 months from the end of the relevant assessment year, once per year, not to reduce tax or raise a refund.
   • Sec 140B(3A), Income-tax Act 1961 (now Sec 267, Income-tax Act 2025)A further 10% of tax and interest applies to an updated return filed after a Sec 148 notice.
   • Sec 270A(11A), Income-tax Act 1961 (now Sec 439, Income-tax Act 2025)Income on which this additional tax is paid is not the basis for penalty under Sec 270A.
3. A

   Analysis

   This route can be cheaper than fighting a reassessment, especially when the income is genuinely missed. The rates become 35%, 60%, 70% or 80% depending on the band. Enter the notice DIN and date in ITR-U Part A. Get advice, because the choice affects your defence in the reassessment.

4. C

   Conclusion

   1. 1Note the Sec 148 notice date and DIN.
   2. 2Compute tax with the extra 10%.
   3. 3Pay and file ITR-U within the notice period.
   4. 4Inform the officer in your reply.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.