Tax Consultant
1117 Points
Posted on 26 June 2026
The Finance Bill 2026 made three significant changes to ITR-U under Section 139(8A):
1. TIME WINDOW EXTENDED: From 2 years to 4 years from the end of the relevant assessment year. For AY 2023-24, you can now file ITR-U up to March 31, 2028 (subject to CBDT gazette notification).
2. LOSS ADJUSTMENT NOW ALLOWED: Earlier ITR-U could not be used to reduce income or increase a loss. Finance Bill 2026 now permits loss adjustment in certain cases.
3. SECTION 148 RESTRICTION: If you received a reassessment notice under Section 148 for a year, ITR-U for that year is restricted. File before the notice is issued or the window closes.
Additional tax under Section 140B:
- Within 12 months: 25% on incremental tax and interest
- Within 24 months: 50%
- Within 36 months: 60% (new fourth-year slab)
- Within 48 months: 70% (new, added under Finance Bill 2026)
Worth calculating the total cost before filing. This [advance tax and self-assessment payment guide](https://taxgarden.in/blog/pay-advance-tax-online-challan-step-by-step-india-2026) covers how to compute the challan amount for Section 140B payments.