Introduction : The Finance Act, 2022 has brought new Income Tax return filing facility to be known as ‘Updated Return’. For this purpose a new sub section 8(A) has been added to section 139 of the Income Tax Act (w.e.f. 01.04.2022). Simultaneously, a new Rule 12AC has also been inserted in the Income Tax Rules, wherein form and manner of filing updated return has been prescribed. The updated return is to be filed in form ITR-U. The updated returns can be filed for the assessment years commencing from the assessment year 2020-21 and subsequent assessment years (within the applicable time limits). In this article an attempt has been made to discuss various aspects of this new facility.

Presently Available Return Filing Facilities Will Continue : The updated return facility is an additional return filing facility in addition to the presently available return filing facilities. Presently, in normal course, the assessee can file – (i) Original return within due date U/s.139(1) ; (ii) Belated original return U/s. 139(4) ; and (iii) Revised return U/s. 139(5). After introduction of updated return facility, the present facility to file these three type of returns will remain continue. Now, in addition to the above three type of returns, the assessee will be able to file the new updated return also.

For example – (a) If the assessee has filed original return U/s. 139(1) then he can file updated return. (b) If the assessee has filed belated original return U/s. 139(4) then also he can file updated return (c) If the assessee has filed original return U/s. 139(1) or U/s. 139(4) and thereafter he has filed revised return U/s. 139(5) then in such case also he can file updated return (d) even if the assessee has not filed any return at all U/s. 139(1) / 139(4) / 139(5), then also he can file updated return directly as a first return for that assessment year.

Nature / Purpose / Benefit of Updated Return Facility – Basically, updated return is an opportunity given to the assessee to correct the mistakes / omissions etc. in the original return filed U/s. 139(1) / 139(4) or in the revised U/s. 139(5). Similarly, in cases where no return could be filed U/s. 139(1) / 139(4), it is also a last opportunity to voluntarily file the return. There may be various benefits of this new facility. This facility may reduce work pressure on tax professionals which occurs on due dates because some returns may be filed in later period also in the form of updated return. Similarly, in many real life situations returns are required for period for which option to file U/s. 139(1) / 139(4) have expired. In such circumstances also people may file lapsed return in later period in form of updated return. The government may also get additional revenue due to updated return.

Scope Of Updated Return – The scope of the updated return is very limited. Its scope is not wide as scope of returns U/s. 139(1) / 139(4) / 139(5). In many cases updated return can not be filed e.g., where due to updated return there is reduction in tax liability / increase in refund (later discussed in detail). Similarly, additional tax U/s. 140B may also have to be paid in case of updated return which is not required to be paid alongwith return U/s. 139(1) / 139(4) / 139(5) (discussed later in detail).

Timing And Sequence Of Availability Of Return Filing Facilities :

From Commencement Of Assessment Year To due date U/s. 139(1) – During this period, the original return U/s. 139(1) can be filed. Apart from that the original return U/s. 139(1) can also be revised U/s. 139(5). The updated return cannot be filed during this period. (Note – Presently due dates U/s. 139(1) are 31st July / 30th October of the assessment year.).

After Due Date U/s. 139(1) To last date U/s. 139(4) – During this period, the belated original return can be filed if the original return U/s. 139(1) has not been filed. This return filed  U/s. 139(4) can also be revised U/s. 139(5). Similarly, if the original return U/s. 139(1) has been filed, the same can also be revised U/s. 139(5) till this date. The updated return cannot be filed during this period. (Note – Presently, the general last date U/s. 139(4) / 139(5) is 3 months prior to the end of the assessment year i.e., December of assessment year).

After Due Date U/s. 139(4) To The End of The Assessment Year – During this period no voluntary return filing facility will be available (i.e., no return U/s. 139(1) / 139(4) / 139(5) / 139(8A) updated return (as time limit for filing of updated return will not commence and time limit for filing of other voluntary returns will already expire till this period).

After End Of Assessment Year To 24 Months Thereafter – During this period the updated return filing facility will be available. The updated return cannot be filed during the continuance of the assessment year. It can be filed only after the end of the assessment year. This facility will be available thereafter up to the 24 months only (i.e., updated return can be filed within 24 months from the end of the assessment year). During this period no other voluntary return filing facility U/s. 139(1) / 139(4) / 139(5) will be available (as the time limit for that will already expire up to December month of assessment year.)

First Updated Return Filing Facility Is From Assessment Year 2020-21 Only – The updated return facility provisions are applicable w.e.f. 01.04.2022. Up to this date, the 24 months from the end of the assessment year have already been expired for returns of assessment year 2019-20 and all other earlier assessment years. Only for the returns of assessment year 2020-21, the time limit of 24 months is presently available on 01.04.22. Therefore, this facility will be first available for the returns of assessment year 2020-21. The updated return for this assessment year 2020-21 can be filed within 24 months from the end of the assessment year i.e., up to 31.03.2023.

Similarly, presently time limit of 24 months from the end of the assessment year have also not expired for the assessment year 2021-22, so presently updated return can also be filed for this assessment year. The updated return for assessment year 2021-22 can be filed up to 31.03.2024.

Three Assessment Year’s Return Can Be Filed At Any Point Of Time : After commencement of updated return facility, an assessee can file income tax return of 3 assessment years at any point of time. For example, presently the assessee can file original income tax return U/s. 139(1) in respect of assessment year 2022-23 and updated returns for assessment year 2020-21 and 2021-22. This analysis will be very much helpful in many real life circumstances where Income Tax returns of 3 years are required.

No Updated Return If Assessment, Reassessment Proceedings Have Been Initiated / Completed : The updated return for any assessment year can be filed only, if there are no proceedings for assessment, reassessment etc. in the case of the assessee for that assessment year. If any assessment, reassessment, recomputation, revision etc. proceedings for any assessment year are pending / completed in the case of the assessee, for any assessment year, then updated return for that assessment year cannot be filed.

Thus, as mentioned above, the above updated return facility is available only till commencement of any assessment, reassessment etc. proceedings in the case of the assessee for the relevant assessment year.

No Reduction In Tax Liability / Increase In Refund Through Updated Return – (i) If no return was filed prior to the updated return and the updated return is the first return for the assessment year then no refund can be claimed in the updated return. (ii) If earlier returns were filed U/s. 139(1) / 139(4) / 139(5) and no refund was there, then in the updated return also no refund can be claimed. (iii) If earlier returns were filed U/s. 139(1) / 139(4) / 139(5) and refund was there, then refund can be there in updated return but it should not be more than the refund in earlier returns. It can be at same amount or at less amount in the updated return. Similarly, the tax liability in the updated return can be more than or same as per the earlier returns but it cannot be less than the earlier returns filed U/s. 139(1) / 139(4) / 139(5).

Summarily, it can be said that due to updated return there may or may not be any increase in revenue but in any case there should not be any loss of revenue to the government.

Updated Return Can Not Be Revised : The updated return cannot be revised because the time limit for revising the return U/s. 139(5) will always expire prior to the commencement of filing of updated return. Similarly, only one updated return for a particular assessment year is permissible.

Not Necessary To First File Revised Return Prior To Filing Of Updated Return  : For rectification purposes, it is not necessary to first file revised return and then to file updated return (if required). The updated return can be filed directly in cases where revision facility has not been availed.

Updated Return Facility Availability Where Defective Return Could Not Be Rectified U/s. 139(9) – If the original return is filed U/s. 139(1) / 139(4) or revised return is filed  U/s. 139(5), but the same is considered as defective and the defect cannot be rectified within given time limit then in such cases, the above return will become invalid. In such condition also the updated return can be filed later on. However, the assessee may be required to pay additional tax U/s. 140B which may not be required to be paid if the defect regarding return U/s. 139(1) /139(4) /139(5) is rectified U/s. 139(9) (Section 140B later discussed in the article).

Updated Return Can Also Be A Defective Return U/s. 139(9) : The updated return is to be filed U/s. 139(8A), whereas the provisions of defective return are contained in later sub section i.e., in section 139(9) therefore, the language of section 139(9) covers returns filed  U/s. 139(8A) also.

Updated Return Facility Is Available For All Persons : This facility is available for all the persons e.g., individual, HUF, partnership firm, LLP, company, AOP, BOI, local authority, artificial judicial person etc.

Updated Return In Case Of Loss :  (a) If the original return U/s. 139(1) / 139(4) or revised return (if any) U/s. 139(5) were of income and updated return is of loss then updated return can not be filed. (b) If the original return was of loss and was validly filed U/s. 139(1), then the updated return may be filed if there is reduction of loss or conversion of loss in to income (increase in loss is not permissible). (c) If no return for the assessment year was filed and the updated return is the first return for that assessment year and is of loss, then updated return is not permissible (d) If the original return was a loss return and was filed U/s. 139(4), then in this regard no specific provision are there U/s. 139(8A) for filing of updated return. However, the author is of view that the loss mentioned in belated return is not eligible to be carried forward. So practically and effectively it is merely a return with nil income. In such case the assessee may file updated return with nil income or with any increased income. However, ultimately the correct position will be known only after start of filing of updated return on Income Tax Department portal that whether portal is allowing filing of updated return in such cases in above manner or not.

Mandatory Updated Return For Subsequent Assessment Years In Loss Etc. Cases – If updated return is filed for any assessment year and due to which any loss carried forward under Chapter VI or any unabsorbed depreciation carried forward under section 32 (2) or tax credit carried forward U/s. 115JAA or U/s. 115JD is to be reduced for any subsequent assessment year then such case the updated return is to be mandatorily filed for each such subsequent assessment year which is being affected. For example, if the loss of assessment year 2020-21 is carried forward to assessment year 2021-22 and 2022-23, then on reduction of loss of assessment year 2020-21 due to filing of updated return for assessment year 2020-21, the updated returns for the assessment years 2021-22 and 2022-23 will have to be filed mandatorily.

There is an issue that if on reduction of losses etc. due to updated return, the mandatory updated returns for the subsequent assessment years are not filed / omitted to be filed, then what will happen. In such cases whether the updated return of assessment year 2020-21 will not be acceptable or the department will proceed to reduce the carry forward of losses etc. in the subsequent assessment years.

Updated Return With No Tax Liability : There is no bar on filing of updated return with no tax liability. If original return of income was of below basic tax exemption limit but the same could not have been filed either U/s. 139(1) / 139(4), the same may be filed in the form of updated return without any tax liability / additional tax liability U/s. 140B (later discussed). It is so because additional tax U/s. 140B is leviable based on amount of regular tax amount. If the regular tax liability is Nil then additional tax liability will also not be there.

Similarly, if the original return of income was filed with income below basic tax exemption limit and later on the updated return is also filed with income below basic tax exemption limit, then it is also permissible to file the same without any tax / additional tax liability.

No Updated Return In Search, Seizure, Requisition cases – The updated return cannot be filed where in the case of the assessee (i) a search has been initiated U/s. 132 ; or (ii) books of account / other documents / any assets etc. are requisitioned U/s. 132A ; or (iii) a survey has been conducted under section 133A (except TDS survey U/s. 133A(2A) ; or (iv) a notice has been issued that money, books etc. seized U/s. 132 / requisitioned U/s. 132A in case of other person / information therein belongs to the assessee. In such cases updated return facility will not be available for the year of search etc. as well as for any assessment year prior to the year of search etc.

No Updated Return In Prosecution Cases – If in the case of the assessee, any prosecution proceedings under the Chapter XXII have been initiated for any assessment year, then for that assessment year the updated return cannot be filed. One thing is to be remembered here that the above bar is applicable only if the prosecution proceedings have been initiated prior to the filing of the updated return. If the same have been initiated after filing of the updated return, then validity of the updated return may not be affected.

­ Other Cases Where Updated Return Can Not Be Filed – If the AO has some information about the assessee, in respect of any assessment year, and the same has been communicated to the assessee before filing of the updated return, then the updated return cannot be filed for that assessment year. The above information may be under the (i) Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 ; or (ii) Prohibition of Benami Property Transactions Act, 1988 ; or (iii) Prevention of Money-laundering Act, 2002 ; or (iv) Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 ; or (v) an agreement referred to in section 90 or section 90A.

Form And Manner Of Filing Updated Return : Updated return is to be filed in Form ITR-U. The updated return form for all the assessee is one and same. ITR-U is to be filed by all assessee irrespective of the fact that original return form applicable was ITR-1 or ITR-2 or any other ITR form. ITR-U is a complete return. It is sufficient to file ITR-U only for updated return. It is not required to be accompanied with ITR-1, ITR-2 or any other ITR form originally applicable to the assessee (if it was filed U/s. 139(1) / 139(4) / 139(5). The ITR-U is very brief form. Very less details have been asked in this form as compared to ITR-1, ITR-2 etc.

As per ITR-U, it can be filed due to various reasons i.e., (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 etc.

It is to be filed either (a) electronically under digital signatures ; or (b) under electronic verification code (as per the rule applicable to the particular assessee).

Tax Liability For Updated Return – For taxes relating to updated return, a new section 140B has been inserted. As per this section, in updated return, the credit for all prepaid taxes, reliefs etc.  (i.e., advance tax, tds, tcs, self assessment tax U/s. 140A, tax credits U/s. 115JAA, 115JD and relief under section 89, 90, 90A, 91) will be allowed. The interest (e.g., interest U/s. 234A, 234B and 234C) and late fee (e.g., fee U/s. 234F) will be leviable. Apart from the above, additional tax may also be required to be paid in respect of updated return. All the taxes, additional taxes etc. relating to the updated return are required to be first paid prior to the filing of the updated return and the proof of payment of the same has to be given alongwith the updated return otherwise the return may be defective. The pay later facility as available in respect of normal self assessment tax U/s. 140A is not available in respect of additional tax U/s. 140B.

Additional Tax For Updated Return – The rate and amount of additional tax will depend upon the time of filing of updated return. The additional tax will increase with delay in filing the updated return. The amount of additional tax will also depend upon the amount of regular tax + interest. If no regular tax and interest is payable on income in updated return, then no additional tax will be required to be paid with the updated return. The applicable surcharge and cess will also be required to be paid on additional tax. The different slabs of additional tax are mentioned in the succeeding paras.

Updated Return Filed Up To Expiry Of 12 Months From End Of Assessment Year – In such case additional tax payable will be 25% of (regular tax + interest). For example – if updated return for assessment year 2021-22 is filed up to 31.03.2023, then only 25% additional tax will be payable.

Updated Return Filed Between 12 Months To 24 Months From End Of Assessment Year – In such case additional tax payable will be 50% of (regular tax + interest). For example – if updated return for assessment year 2021-22 is filed up after 31.03.2023 but up to 31.03.2024, then additional tax at higher rate of 50% will be payable.

(Note – In computing 25% / 50% additional tax, only regular tax + interest will be considered any late fee U/s. 234F will not be considered.)

(Note – in section 140B(3) it has been mentioned that 25% additional tax will be leviable if the updated return is filed after expiry of time limit U/s. 139(4) / 139(5) to 12 months from the end of the assessment year. Here it appears that some drafting mistake has occurred. It is so because during period from expiry of time limit U/s. 139(4) / 139(5) to the end of the assessment year no updated return can be filed. Here the time limit should have been drafted as after expiry of assessment and up to 12 months thereafter).

Consequential Amendments In Various Sections – After insertion of section 139(8A), consequential amendments have been made in various sections to compute taxes, interests, time limits etc. on the basis of updated return (e.g., in section 144, 153, 276CC, 234A and also relating to computing interest U/s. 234B, 234C etc.)

Comparison of Updated Return With Revised Return – Updated return can be filed only once for any assessment year, whereas revised return can be filed more than once (but within time limit). In updated return tax liability can not be reduced / refund can not be increased / loss can not increased etc. but there is no bar on all these in case of revised return. Updated return can be filed even if no original return has been filed however, revised return cannot be filed in absence of any valid original return. No additional tax U/s. 140B is required to be paid alongwith revised return but the same may be payable in case of updated return.

DISCLAIMER : The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author do not owns any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article. Before taking any action relevant to the above topic, it is advised that the user may please refer relevant Act, Rules etc.

RELEVENT SECTIONS REPRODUCED

Amendment of section 139.

38. In section 139 of the Income-tax Act,—

(i) after sub-section (8), the following sub-section shall be inserted, namely:—

“(8A) Any person, whether or not he has furnished a return under sub-section (1) or sub-section (4) or sub-section (5), for an assessment year (herein referred to as the relevant assessment year), may furnish an updated return of his income or the income of any other person in respect of which he is assessable under this Act, for the previous year relevant to such assessment year, in the prescribed form, verified in such manner and setting forth such particulars as may be prescribed, at any time within twenty-four months from the end of the relevant assessment year:

Provided that the provision of this sub-section shall not apply, if the updated return,—

(a) is a return of a loss; or

(b) has the effect of decreasing the total tax liability determined on the basis of return furnished under sub-section (1) or sub-section (4) or sub-section (5); or

(c) results in refund or increases the refund due on the basis of return furnished under sub-section (1) or sub-section (4) or sub-section (5),

of such person under this Act for the relevant assessment year:

Provided further that a person shall not be eligible to furnish an updated return under this sub-section, where—

(a)  a search has been initiated under section 132 or books of account or other documents or any assets are requisitioned under section 132A in the case of such person; or

(b) a survey has been conducted under section 133A, other than sub-section (2A) of that section, in the case such person; or

(c) a notice has been issued to the effect that any money, bullion, jewellery or valuable article or thing, seized or requisitioned under section 132 or section 132A in the case of any other person belongs to such person; or

(d) a notice has been issued to the effect that any books of account or documents, seized or requisitioned under section 132 or section 132A in the case of any other person, pertain or pertains to, or any other information contained therein, relate to, such person, for the assessment year relevant to the previous year in which such search is initiated or survey is conducted or requisition is made and any assessment year preceding such assessment year:

Provided also that no updated return shall be furnished by any person for the relevant assessment year, where—

(a)  an updated return has been furnished by him under this sub-section for the relevant assessment year; or

(b) any proceeding for assessment or reassessment or recomputation or revision of income under this Act is pending or has been completed for the relevant assessment year in his case; or

(c) the Assessing Officer has information in respect of such person for the relevant assessment year in his possession under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (13 of 1976) or the Prohibition of Benami Property Transactions Act, 1988 (45 of 1988) or the Prevention of Money-laundering Act, 2002 (15 of 2003) or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015) and the same has been communicated to him, prior to the date of furnishing of return under this sub-section; or

(d) information for the relevant assessment year has been received under an agreement referred to in section 90 or section 90A in respect of such person and the same has been communicated to him, prior to the date of furnishing of return under this sub-section; or

(e) any prosecution proceedings under the Chapter XXII have been initiated for the relevant assessment year in respect of such person, prior to the date of furnishing of return under this sub-section; or

(f) he is such person or belongs to such class of persons, as may be notified by the Board in this regard:

Provided also that if any person has sustained a loss in any previous year and has furnished a return of loss in the prescribed from within the time allowed under sub-section (1) and verified in the prescribed manner and containing such other particulars as may be prescribed, he shall be allowed to furnish an updated return where such updated return is a return of income:

Provided also that if the loss or any part thereof carried forward under Chapter VI or unabsorbed depreciation carried forward under sub-section (2) of section 32 or tax credit carried forward under section 115JAA or under section 115JD is to be reduced for any subsequent previous year as a result of furnishing of return of income under this sub-section for a previous year, an updated return shall be furnished for each such subsequent previous year.”;

(ii)  in sub-section (9), in the Explanation, after clause (c), the following clause shall be inserted, namely:—

“(ca) the return is accompanied by the proof of payment of tax as required under section 140B, if the return of income is a return furnished under sub-section (8A);”.

Insertion of new section 140B.

39. After section 140A of the Income-tax Act, the following section shall be inserted, namely:—

‘140B. Tax on updated return.—(1) Where no return of income under sub-section (1) or sub-section (4) of section 139 has been furnished by an assessee and tax is payable, on the basis of return to be furnished by such assessee under sub-section (8A) of section 139, after taking into account,—

(i) the amount of tax, if any, already paid as advance tax;

(ii) any tax deducted or collected at source;

(iii) any relief of tax claimed under section 89;

(iv) any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India;

(v) any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section; and

(vi) any tax credit claimed to be set off in accordance with the provisions of section 115JAA or section 115JD,

the assessee shall be liable to pay such tax together with interest and fee payable under any of the provisions of this Act for any delay in furnishing the return or any default or delay in payment of advance tax, along with the payment of additional income-tax computed in accordance with sub-section (3), before furnishing the return and the return shall be accompanied by proof of payment of such tax, additional income-tax, interest and fee.

(2) Where, return of income under sub-section (1) or sub-section (4) or sub-section (5) of section 139 (referred to as earlier return) has been furnished by an assessee and tax is payable on the basis of return to be furnished by such assessee under sub-section (8A) of section 139,—

(a) after taking into account,—

(i)  the amount of relief or tax referred to in sub-section (1) of section 140A, the credit for which has been taken in the earlier return;

(ii) tax deducted or collected at source, in accordance with the provisions of Chapter XVII-B, on any income which is subject to such deduction or collection and which is taken into account in computing total income and which has not been included in the earlier return;

(iii) any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India on such income which has not been included in the earlier return;

(iv) any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section on such income which has not been included in the earlier return;

(v) any tax credit claimed, to be set off in accordance with the provisions of section 115JAA or section 115JD, which has not been claimed in the earlier return; and

(b) as increased by the amount of refund, if any, issued in respect of such earlier return,

the assessee shall be liable to pay such tax together with interest payable under any provision of this Act for any default or delay in payment of advance tax along with the payment of additional income-tax, as computed in accordance with sub-section (3), as reduced by the amount of interest paid under the provisions of this Act in the earlier return, before furnishing the return and the return shall be accompanied by proof of payment of such tax, additional income-tax, interest and fee.

(3) For the purposes of sub-sections (1) and (2), the additional income-tax payable at the time of furnishing the return under sub-section (8A) of section 139 shall be equal to,—

(i) twenty-five per cent. of aggregate of tax and interest payable, as determined in sub-section (1) or sub-section (2), as the case may be, if such return is furnished after expiry of the time available under sub-section (4) or sub-section (5) of section 139 and before completion of the period of twelve months from the end of the relevant assessment year; or

(ii) fifty per cent. of aggregate of tax and interest payable, as determined in sub-section (1) or sub-section (2), as the case may be, if such return is furnished after the expiry of twelve months from the end of the relevant assessment year but before completion of the period of twenty-four months from the end of the relevant assessment year.

Explanation.—For the purposes of computation of “additional income-tax”, tax shall include surcharge and cess, by whatever name called, on such tax.

(4) Notwithstanding anything contained in Explanation 1 to section 234B, for the purposes of sub-section (2), interest payable under section 234B shall be computed on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid falls short of the assessed tax, where, “assessed tax” means the tax on the total income as declared in the return to be furnished under sub-section (8A) of section 139,—

(a) after taking into account,—

(i)  the amount of relief or tax referred to in sub-section (1) of section 140A, the credit for which has been claimed in the earlier return;

(ii)  tax deducted or collected at source, in accordance with the provisions of Chapter XVII-B, on any income which is subject to such deduction or collection and which is taken into account in computing such total income, which has not been included in the earlier return;

(iii)  any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India on such income which has not been included in the earlier return;

(iv)  any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section on such income which has not been included in the earlier return;

(v)  any tax credit claimed, to be set off in accordance with the provisions of section 115JAA or section 115JD, which has not been claimed in the earlier return; and

(b) as increased by the amount of refund, if any, issued in respect of such earlier return.

(5) If any difficulty arises in giving effect to the provisions of this section, the Board may, with the approval of the Central Government, by notification in the Official Gazette, issue guidelines for the purpose of removing the difficulty.

(6) Every guideline issued under sub-section (5) shall be laid before each House of Parliament.

Explanation.—For the purposes of this section,—

(i) interest payable under section 234A, for the purposes of sub-section (1), shall be computed on the amount of tax on the total income as declared in the return, under sub-section (8A) of section 139, in accordance with the provisions of sub-section (1A) of section 140A;

(ii) interest payable under section 234C, for the purposes of sub-section (2), shall be computed after taking into account the total income furnished in the return under sub-section (8A) of section 139 as the returned income;

(iii) interest payable, for the purposes of sub-section (3), shall be the interest chargeable under any provision of this Act, on the income as per return furnished under sub-section (8A) of section 139, as reduced by interest paid, in accordance with the earlier return, if any:

Provided that for the purposes of this clause, the interest paid in the earlier return shall be nil if such return is an updated return referred to in sub-section (1).’.

CHAPTER XIV

PROCEDURE FOR ASSESSMENT

Return of income.

(4) Any person who has not furnished a return within the time allowed to him under sub-section (1), may furnish the 46[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.

(5) 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 48[before three months prior to the end] of the relevant assessment year or before the completion of the assessment, whichever is earlier.

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3 Comments

    1. Mustufa Mankada says:

      Hi Chirag,

      We can file ITR U for partnership firm. As per section 139(8A), any taxpayer can file ITR U. However, certain conditions need to be satisfied.

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