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We know that under the Income Tax Act, there are maximum changes in the Budget of our Government. In the Finance Act, 2022, relief given to tax payer for submitting return of Income. Section 139(8A) added to the Income Tax Act, 1961, which provide relief to tax payer for filling of return of income, as updated return. For this new rule, no 12AC has been added to the Income Tax Rules. In this how to file updated return and Form is prescribed. This section and rule is applicable from assessment year 2020-21 and on words. This article delves into its implications, filing procedures, and exceptions.

At present we are filling our return of income as under:

Section 139(1) every person,

being a company or a firm; or

being a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to tax, shall on or before due date, furnishing a return of his income or the income of such other person during the previous year, in a prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.

(a) Where the assesse is a company; or a person other than a company, whose accounts are required to be audited under Income Tax act or any other law; or a partner of the firm whose accounts are required to be audited under Income Tax Act or any other law for the time being in force, or the spouse of such partner if the provision of section 5A applies to such spouse: By 31st October

(b) In the case of any other assesse than (a) above: By 31st July

Section 139(4) Belated Return

Any person who has not furnished a return within the time allowed to him under sub-section(1), may furnish, the return for any previous year at any time before three months prior to the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

Section 139(8A) Updated Return effective from 1st April, 2022

Section 139(5) Revised Return

If any person, having furnished a return under sub section (1), or sub section (4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before three months prior to the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

If any assesse have submitted his return of income under section 139(1), or 139(4), or 139(5) can file Updated Return before the due date. Suppose if an assesse has not furnish return of income under section 139(1) or 139(4) or 139(5) he may file his updated return for that assessment year.

Updated return is an additional facility for tax payers, that means Individual, Hindu Undivided Family, Partnership Firm, Limited Liability Firm (LLP), Company, Association of Person (AOP), Body of Individual(BOI), Artificial Judicial Person.

Under following circumstances, updated return cannot submitted:

(1) When an assesse has filed his return of income under section 139(1) within due date or has filed is return of income under section 139(4) as belated return within time permitted or has filed return of income under section139(5) as revised return within time permitted. But if find that in that assessment year he forget to deduct loss of one head, he cannot submit updated return for that assessment year. In short updated return cannot be submitted if the income shown is to be reduced.

(2) If an assesse has submitted his return of income under section 139(1), with in time allowed, wherein he has shown loss under the head Capital Gain, and now he find that loss shown is less than the actual loss, for that he cannot submit belated return, but if loss shown is more than actual loss, he can submit belated return.

(3) If an assesse has not submitted his return of income, later on he find that there was loss for that previous year, he cannot submit updated return of loss.

(4) In the case of search or seizure or requisition updated return cannot file. In the case of any assesse proceeding of search under section 132 is initiated; or books of accounts or assets are demanded under section 132A, or survey under section 133A is initiated (not under section 133(A)(2A) for Tax Deducted at Source). In such type of case facility of submitting updated return for the year of search or earlier years is not allowed.

A tax payer has filed his return of income for assessment year 2021-22 showing a deficit, this deficit was carry forward for assessment year 2022-23 and 2023-24. Assesse has filed updated return for assessment year 2021-22 and due to that deficit for assessment year 2022-23 is reduced. For this assesse has compulsory filed updated return for assessment years 2022-23 and 2023-24.

The question arise that if an assesse did not filed updated return for assessment year 2022-23 and 2023-24. We hope that Central Board of Direct Tax may issue clarification.

Conclusion

Understanding Section 139(8A) is crucial for taxpayers navigating the intricacies of income tax filings. While it provides relief and flexibility, adherence to rules and exceptions is vital. Clarifications from the Central Board of Direct Taxes may further elucidate its application. Stay informed to optimize tax obligations effectively.

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