Updated Return of Income

[Section 139(8A), Section 140B, Rule 12AC of Income Tax Act]

The time limit for filing of updated return

The provision of updated returns is effective from 01-04-2022.The time limit provided for filing an updated return is 24 months from the end of the relevant assessment year.In the financial year 2023-24, a person can file an updated return for AY 2021-22 and AY 2022-23.

Form for filing an updated return

The taxpayer will be required to fill the Schedule 'Part A Gen 139(8A)' and Schedule 'Part B ATI' of the relevant form (ITR 1- ITR 7) to file an updated return.

When an updated return cannot be filed?

1.     If an updated return is a return of loss

2.     If an updated return results in lower tax liability

3.     If an updated return results in or increase in the refund

4.     If a search is initiated against the assessee

5.     If books of account or other documents or any assets are requisitioned

6.     If a survey conducted against the assessee

7.     If documents or assets are seized or requisitioned in case of any other person belonging to the assessee

8.     If the updated return has already been filed

9.     If the assessment is pending or completed

10.If AO has information about the assessee under specified Acts (Money Laundering Act, Black Money, Benami Property, Smugglers and Foreign Exchange Manipulators Act, etc)

11.If AO has information about the assessee under DTAA or TIEA

12.If any prosecution proceeding is initiated

13.In other notified cases

Tax on updated return

The provisions of section 140B provide for payment and computation of tax, interest, fee, and additional income tax on updated returns.

The updated return shall be accompanied by the proof of tax payment, i.e., normal tax (if any), additional tax, interest, and fee as required under section 140B otherwise it shall be treated as a defective return.

For Updated ITR we need to pay Normal Income Tax, Interest , Fees as well as Addional Taxes

 Additional tax on updated return

 ·         Where the updated return is furnished after the expiry of due date of filing of belated or revised ITR but before completion of the period of 12 months from the end of the relevant assessment year => the additional tax payable shall be 25% of the aggregate of tax and interest payable on filing of Updated ITR

·         Where the updated return is furnished after the expiry of 12 months from the end of the relevant assessment year but before completion of the period of 24 months from the end of the relevant assessment year => the additional tax payable shall be 50% of the aggregate of tax and interest payable on filing of Updated ITR

 ·         For computation of "additional income-tax", tax shall include surcharge and cess. Further, for the computation of additional tax, the amount of interest payable shall be reduced by the amount of interest paid in accordance with the earlier return.