Section 139(8A) -Updated return – Union Budget 2022

New updated return introduced in Budget 2022-Let us discuss it in simplified manner-

1. Any person ,

Whether or not he has not furnished an original return, belated return or revised return,     may furnish an updated return of his income till 24 months from the end of the assessment year.

but when he cannot file updated return-

• If updated return is a loss,
• If updated return will decrease the total tax liability declared earlier,
• If updated return results in refund or increases the refund filed earlier,
• If search has been initiated u/s 132 or books of account or assets are requistioned u/s 132A or survey has been conducted u/s 133A,
• If any proceeding for assessment or reassessment or recomputation or revision of income is pending or has been completed for that assessment year.
• Any prosection proceedings pending or information received under an agreement refered to in sections 90 or 90 A in respect of person and same has been communicated to him.

2. Section 140 B- 

Addition tax required to be paid- 

Two cases- 

• Where no return furnished earlier-  In case no return furnished earlier (original ,revised or belated) ,he shall be liable to pay tax due together with interest and fee for delay in fuurnishing of return along with payment of additional tax but obviously credit shall be taken of any advance tax, TDS ,TCS ,relief claimed u/s 89 ,u/s 90 , u/s 91,u/s 90A and tax credit claimed to set off in accordance with provisions of sec 115JAA OR 115 JD
  

• Where return furnished earlier- He shall be liable to pay tax on additional income declared along with interest and additional tax but interest paid earlier shall be reduced. He shall be given credit of taxes paid earlier.

3. Amount of additional tax :

• Return furnished after expiry of timit limit for revised return or belated return but before completion of period of twelve months from the end of the relevant assessment year – 25 % of aggregate of tax and interest payable.
• Return furnished after expiry of twelve months from the end of the relevant assessment year but before expiry of twenty four months the end of the relevant assessment year – 50 % of aggregate of tax and interest payable.

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That’s all for today- Queries related to above mailed at [email protected].