Incometax Survey - Updated Return Filing after the Budget 2026

If a survey has been conducted under Section 133A, then you CANNOT file ITR-U for that assessment year — the law excludes survey cases from ITR-U eligibility.The 2026 Budget introduced more flexible settlement/immunity options:
 If income is under-reported or mis-reported, the taxpayer can avoid prosecution/penalty by paying additional tax equal to 100% of the differential tax (i.e., an extra 100% tax on top of the tax/interest due). For certain unexplained income cases, the extra tax may be 120%, instead of traditional penalties.

Anwering question 2:

No. There is NO legal requirement that every survey case must be handled by the Central Circle.Centre Cirlce is usually for  Search cases under Section 132 and Requisition cases under Section 132A

Thank you for the reply. But for point 1, I still have a query, in the budget update, it was stated that the ITR U can be filed even in case of reassessment has been initiated. Whether this covers survey as well?