edited by: Namit Singh Sengar
Last Update: January 29, 2023, 4:25 pm IST
Updated return cannot be filed if such updated return is a return of loss.
Income Tax Updated Return: An updated return can be filed at any time within 24 months from the end of the relevant assessment year.
updated return: In the Finance Act 2022, sub-section (8A) was added to section 139 of the Income Tax Act to file updated returns.
In 2022, the central government proposed to allow taxpayers to file an updated return on payment of excess tax within two years from the end of the relevant assessment year.
The provision was announced by Union Finance and Corporate Affairs Minister Nirmala Sitharaman while presenting the Union Budget for the financial year 2022-23.
Why did the government add an updated return provision?
FM Sitharaman had said that this would give taxpayers an opportunity to rectify any omissions or mistakes in estimating their income correctly for tax payment.
He then said that if the IT department finds that some income has been lost by the assessee, it goes through a lengthy process of adjudication, adding that the new proposal will instill confidence in the taxpayer.
“It is a positive step towards voluntary tax compliance,” he had said.
Properties
– provision to file updated return on payment of additional tax.
Enable the assessee to declare the missed income earlier.
Can be filed within two years from the end of the relevant assessment year.
As per information provided by Income Tax India On its website, the section provides that an updated return may be filed by any person irrespective of the fact whether such person has already filed the original, belated or revised return for the relevant assessment year.
An updated return can be filed at any time within 24 months from the end of the relevant assessment year. However, there are many situations where an updated return cannot be filed.
For example, return an update Can not If such updated return is a return of loss then it should be filed.
Further, if one cannot file an updated return, the reduced tax liability resulting from such updated return is determined on the basis of the original, revised or belated return filed by the assessee.
Another instance where an updated return is not allowed is when refund is due or increased on the basis of original, revised or belated return filed by the assessee as a result of such updated return.
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