Income Tax Return – Not Revised, Not Belated but Updated!!

In an interesting move by the ITD, new Form -U for filing of updated returns has been released. This means that one can file returns for FY 2019-20 and FY 2020-21 and update returns which have already been filed subject to certain terms and conditions. Key highlights are as follows:

Who can file updated returns u/s 139(8A):

All persons (Individual, HUF, Firms/LLP, Companies, AOP, BOI, etc.) provided:

a.?????taxpayer has not filed the return of income earlier or there are errors/omissions in original filed return.

b.?????taxpayer has to disclose any additional income which was missed earlier and should pay additional taxes, if applicable.

Who cannot file updated returns u/s 139(8A):

It is an exhaustive list as follows:

a.?????If it is Return of Loss.

b.?????If it has the effect of decreasing the tax liability or increasing the refund.

c.??????A search has been initiated u/s 132 or books of accounts or other documents or any assets are requisitioned u/s 132(A).

d.?????A Survey has been conducted u/s 133A other than Section 133A(2A).

e.?????If any Assessment is pending or completed.

f.???????If Assessing Officer has information about the assessee under specified acts .

g.?????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.

h.?????If any Prosecution proceedings have been initiated before the date of furnishing updated return.

i.???????If the taxpayer belongs to such class of persons as notified by board.

Time limit and additional tax payable:

a.?????The time limit for filing updated returns is 2 years from the end of such relevant assessment year with 25%/50% penalty on tax and interest payable(other than 234F) if return is filed with 12/24 months from end of relevant assessment year. #incometax #incometaxreturn #taxpayer #taxprofessional