By CA Surekha S Ahuja
Introduction — Why Tomorrow Is Not “Just Another Due Date”
Tomorrow marks a legal point of no return in the Income-tax Act.
Until tomorrow, a taxpayer may still comply through a normal return, with all its rights intact—refunds, loss carry-forwards, revisions, and routine processing.
From the day after tomorrow, that landscape changes fundamentally.
The law then permits only a curative, penal alternative—ITR-U (Updated Return)—available on strict conditions, at a substantial cost, and with irreversible consequences.
This post explains what ends tomorrow, what remains thereafter, and why the difference is not procedural but legal and financial.
What Statutorily Ends Tomorrow (AY 2025-26)
Tomorrow is the last date to file:
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Belated Return under Section 139(4)
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Revised Return under Section 139(5)
Once tomorrow expires:
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No original return can be filed
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No belated return is permitted
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No revision is possible
The right to file a normal return is permanently extinguished by law.
What Changes After Tomorrow
From the next day, the law presumes default, not delay.
You lose:
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The right to claim or receive refunds
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The right to carry forward losses
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The right to revise or correct voluntarily
And you are left with only one constrained statutory option.
The Only Alternate After Tomorrow — ITR-U Explained
The sole route available after tomorrow is:
ITR-U (Updated Return) under Section 139(8A)
ITR-U is not an extension of time.
It is a post-default compliance facility, designed to permit voluntary disclosure only before departmental detection.
Time Limit for ITR-U
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Can be filed within 48 months from the end of the relevant Assessment Year
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For AY 2025-26, the outer limit is 31 March 2029
The window exists—but the cost and restrictions escalate sharply.
Mandatory Conditions to File ITR-U
ITR-U can be filed only if all of the following are satisfied:
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Total income must increase
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No loss return permitted
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No reduction of tax liability
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No claim or enhancement of refund
Before filing, the taxpayer must pay in full:
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Tax on additional income
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Interest under Sections 234A, 234B and 234C
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Fee under Section 234F (where applicable)
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Additional tax under Section 140B
When ITR-U Is Completely Barred
ITR-U cannot be filed if, for the relevant year:
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Notice under Section 148 or 148A has been issued
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Search or survey has been conducted
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Assessment or reassessment is completed
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Prosecution proceedings have been initiated
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Information is received under Black Money, Benami or allied laws
At that point, voluntary compliance ceases to exist.
The Real Cost: Additional Tax Under Section 140B
| Period of filing ITR-U | Additional Tax |
|---|---|
| Within 12 months | 25% |
| 12–24 months | 50% |
| 24–36 months | 60% |
| 36–48 months | 70% |
This levy is over and above normal tax and interest—
a penal consequence in substance, though named otherwise.
What You Irrevocably Lose Under ITR-U
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❌ No refund, even if excess tax is paid
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❌ No carry forward of business, capital or house-property losses
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❌ No revision or correction once filed
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❌ Greater scrutiny exposure due to risk profiling
ITR-U is one-time, one-way, and irreversible.
Consequences of Ignoring Both Options
If a taxpayer neither files tomorrow nor validly uses ITR-U:
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Reassessment under Sections 147/148
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Show-cause proceedings under Section 148A
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Best-judgment assessment under Section 144
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Penalties up to 200% of tax
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Prosecution exposure under Section 276CC
At that stage, control shifts entirely to the tax authority.
Why Filing Tomorrow Remains the Best Legal Outcome
| Aspect | File Tomorrow | ITR-U Later |
|---|---|---|
| Additional tax | Nil | 25%–70% |
| Refund eligibility | Yes | No |
| Loss carry-forward | Yes | No |
| Revision possible | Yes | No |
| Compliance posture | Normal | Post-default |
Closure — The Choice That Ends Tomorrow
Tomorrow is not merely a due date.
It is the dividing line between compliance and correction,
between choice and compulsion.
ITR-U is a lifeline, not a privilege.
It exists to contain damage—not to replace timely filing.
If a return can be filed tomorrow,
file it.
Because once tomorrow passes,
compliance no longer belongs to you alone—it belongs to the statute.
