Answer

ITR

Worked example of updated return cost

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  1. Facts

    You pay the normal tax on the missed income, interest for late payment, and additional tax on the sum of the two. For AY 2024-25, the assessment year ended on 31 March 2025, so filing in late 2026 falls in the 12 to 24 month band and the rate is 50%.

  2. Provisions and law

    • Sec 140B, Income-tax Act 1961 (now Sec 267, Income-tax Act 2025)Tax, interest, fee and additional tax must be paid before filing the updated return.
    • Sec 234B, Income-tax Act 1961 (now Sec 424, Income-tax Act 2025)Interest for shortfall in advance tax.
    • Sec 234C, Income-tax Act 1961 (now Sec 425, Income-tax Act 2025)Interest for deferment of advance tax.

  3. Analysis

    Say the missed ₹2,00,000 is taxed at 30% plus 4% cess, that is ₹62,400. Interest under Sec 234B and 234C could be around ₹20,000 by now. Additional tax at 50% of about ₹82,400 is about ₹41,200. Total is roughly ₹1,23,600, and the rate rises to 60% after 31 March 2027; check figures in the utility.

  4. Conclusion

    1. Compute tax on the missed income at your slab.
    2. Compute interest till the payment date.
    3. Apply the correct band rate to tax plus interest.
    4. Pay the total and file.

A Savvy can do this for you

Updated return, ITR-U, Sec 263(6) (old 139(8A))

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