Updated Income Tax return was announced by the Ministry of Finance in Finance Act, 2022 by virtue of section 139(8A) wherein the following important points related to updated return were announced:
Who can file the updated return?
Anyone can file the updated return irrespective of whether the person has filed original return or belated return or revised return and even if the person has not filed the return.
When can an updated return be not filed by a person or in which situation a person cannot file updated return?
A person will not be able to file an updated return in the following situation:
1. When there is an increase in loss in the updated return filed or
2. There is a reduction in total tax liability as compared to original tax liability in return filed under section 139(1), 139(4) and 139(5).
3. There is a refund or increase in refund by filing of updated return.
Further, the following person cannot file updated return:
1. If a search or survey has been conducted on such person.
2. A notice has been issued under section 132 or 132A to question or requisition books of accounts or money, jewelry or any valuable thing
for the relevant previous year and previous two years.
3. If the updated return has been filed once.
4. If any assessment or proceedings is initiated in assessee’s case.
5. Assessing officer has any information under Benami Act, FEMA act, prevention of money laundering act etc. and such information has been communicated to assessee before filing updated return.
6. Any information has been received under section 90 or 90A and such information was communicated to assessee before filing updated return.
7. Any prosecution has been initiated in case of assessee.
Calculate Tax Payable in Updated return under section 140B of the Income Tax Act:
Now vide notification no. 48 of 2022 Dt. 29.04.2022, Income Tax department has announced rule 12AC to provide the form for filing Updated return. After looking at the form provided by Income Tax department following are the important points which we can understand about the Updated Income Tax return.
Key Takeaways from the Updated Income Tax return form are as under:
1. For which period can a person file Updated Income Tax return?
Ans: Assessee can file updated return for assessment year commencing on the 1st day of April, 2020 and subsequent assessment years i.e. updated return can be filed for FY 2019-20 and onwards. However, no updated return can be filed for period before that.
Further, updated return filed for FY 2019-20 will be liable for the 50% additional tax.
2. How to verify Updated return?
Ans: The mode for verifying updated return will be same as normal return which an assessee would file.
3. Does the assessee has to file any other return along with Updated return?
Ans: Yes the assessee needs to file normal ITR 1-7 whichever is applicable along with updated return.
4. What are the reasons available for filing updated return?
Ans: Return previously not filed
Income not reported correctly
Wrong heads of income chosen
Reduction of carried forward loss
Reduction of unabsorbed depreciation
Reduction of tax credit u/s 115JB/115JC
Wrong rate of tax
5. During which period updated return is being filed?
Ans: Further one needs to mention that for which period updated return is being filed i.e. whether it is being filed for period between 0 to 12 month or 12 to 24 months as that would decide the amount additional tax which one needs to pay. Hence, one cannot file updated return for period before FY 2019-20.
6. What details of calculation of additional tax and tax payable needs to be mentioned?
Ans: In the updated return one needs to provide calculation of tax payable over and above normal tax paid in original Income Tax return if any. Details of tax paid under section 140B of the Income Tax act and total income under various heads of income.
7. Can one file updated return today?
Ans: Although format of updated return has been announced by Income Tax Department however, the same is not available till date i.e. 06.05.2022 on e-filing portal for filing. So as and when same is available one can file the return.
We have not seen any changes being made in Challan for payment of tax on such updated Income Tax return.
To read the notification issued by Income Tax department on updated return CLICK HERE.
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