Person 2(31)
1. Persons eligible for filing Updated Return u/s 139(8A)
a. The Updated return can be filed only if the taxpayer has not filed the return of income earlier or there are errors/omissions in original filed return.
b. The Updated return can be filed only if the taxpayer must disclose any additional income which was missed earlier and should pay additional taxes.
2. Persons not eligible to file Updated Return u/s 139(8A)
1. If it is Return of Loss.
2. If it has the effect of decreasing the tax liability or increasing the refund.
3. A search has been initiated u/s 132 or books of accounts or other documents or any assets are requisitioned u/s 132(A).
4. A Survey has been conducted u/s 133A other than Section 133A(2A).
5. If any Assessment is pending or completed.
6. If Assessing Officer has information about the assessee under specified acts .
7. If any information has been received u/s 90 or 90A and same has been communicated to him before the date of furnishing updated return.
8. If any Prosecution proceedings have been initiated before the date of furnishing updated return.
9. If the taxpayer belongs to such class of persons as notified by board.
3. Time Limit to file Updated Returns
The time limit for filing updated returns is 2 years from the end of such relevant assessment year
a. For AY 2020-21 (FY 2019-20): The due date for filing updated return is 31st Mar 2023.
b. For AY 2021-22 (FY 2020-21): The due date for filing updated return is 31st Mar 2024.
c. For AY 2022-23 (FY 2021-22): The due date for filing updated return is 31st Mar 2025.
4. Penalty / Additional Tax Payable
Updated return can be filed only with the penalty. The penalty for filing Updated return is as follows
a. Filed within 12 months from the end of relevant assessment year: Penalty is 25% of aggregate of tax and interest payable on filing of updated return
b. Filed after 12 months from the end of relevant assessment year: Penalty is 50% of aggregate of tax and interest payable on filing on updated return
Note: Section 140B provides for payment and computation of tax, interest, fee and additional income tax on updated return
Important Note: Reasons for updating your income
a. Return previously not filed
b. Income not reported correctly
c. Wrong heads of income chosen
d. Reduction of carried forward loss
e. Reduction of unabsorbed depreciation
f. Reduction of tax credit u/s 115JB/115JC
g. Wrong rate of tax
h. Others
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