The Statutory Brief

IT Act 1961 → 2025 / Section 140B

Returns & assessment

Section 140B → Section 267

Tax and additional tax on updated returns (ITR-U)

Section 140B of the old Income-tax Act, 1961 · new section 267 under the Income-tax Act, 2025

New reference Section 267

Income-tax Act, 1961Section 140B

  • Updated return within 48 months from end of the assessment year
  • Additional tax: 25% / 50% / 60% / 70% of tax and interest by year of filing
  • Before 1 March 2026: not allowed after a reassessment notice (section 140B(3A), inserted from 1 March 2026, now allows it with a further 10%)

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 267

  • Same additional tax ladder in section 267(5): 25% (within 12 months), 50% (24), 60% (36), 70% (48)
  • Time counted from the end of the financial year succeeding the tax year
  • From 1 April 2026: updated return can be filed in response to a reassessment notice under section 280, with a further 10% additional tax (Finance Act 2026)

Applies from tax year 2026-27 (from 1 April 2026).

What changed

A real change: the Finance Act 2026 allows an updated return after a reassessment notice (section 263(6)(b)(ii)) at an extra 10% additional tax (section 267(5)(ii)); a matching change was made to the 1961 Act from 1 March 2026.

Practice notes

  • Updated returns cannot reduce tax or increase refunds.
  • Assessment of an updated return must be completed within one year from the end of the FY in which it is filed (section 286).

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is the additional tax on updated return under the new Income Tax Act 2025?

Section 267(5): 25%, 50%, 60% or 70% of tax and interest depending on when it is filed within 48 months; plus 10% more if filed after a reassessment notice under section 280.

What is section 140B called in the new Income-tax Act, 2025?

Section 140B of the Income-tax Act, 1961 corresponds to Section 267 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 140B under the new Income Tax Act?

A real change: the Finance Act 2026 allows an updated return after a reassessment notice (section 263(6)(b)(ii)) at an extra 10% additional tax (section 267(5)(ii)); a matching change was made to the 1961 Act from 1 March 2026.

Is section 140B still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 140B of the 1961 Act. Section 267 of the 2025 Act applies from tax year 2026-27.

Related sections

139→263Return of income: original, belated, revised, updated and defective returns147→279Income escaping assessment: power to assess or reassess148→280Notice for reassessment where income has escaped assessment, and the pre-notice procedure