1.) What is Updated Return ?
Updated Return is Return of Income under section 139(8A) of Income Tax Act 1961 to be filed in Form ITR-U which allow any taxpayer
-to file return of income not filed earlier
-to rectify any incorrect disclosure in Income Tax Return
-to rectify or change head of Income
-to reduce carry forward loss
-to reduce unabsorbed depreciation
-to reduce income tax credit etc.
2.) Who can submit Updated Return ?
Any person can submit updated return whether or not he has furnished his Original/Revised/Belated return of Income.
3.) Time Limit for Submission of Updated Return?
Updated return can be field within 24 months from the end of relevant assessment year. For Example, Updated Return for AY 2022-23 can be filed up to 31st March 2025
4.) When Updated Return Cannot be Submitted ?
In the following circumstances updated return cannot be submitted
5.) How to Calculate Income Tax on Updated Return ?
As per section 140B of Income Tax Act 1961, income tax liability on updated return will be calculated as follows:-
Tax Payable + Interest + Fees Payable for non filing of Income Tax (if any) + Amount Payable as Additional Tax (For taking benefit of Section 139(8A))= Total Income Tax Liability
Total Tax Liability (As calculated above) Less TDS/TCS/Advance Tax/Tax Relief etc = Net Tax Liability under section 140B
6.) What is Additional Tax Liability?
In order to take benefit if section 139(8A), assessee needs to pay additional tax computed as follows: –
7.) Date of Applicability of Provisions :- 1st April 2022