The Income Tax Department has recently tweeted that the window to file the updated Income Tax Returns (ITR) for the Assessment Year 2020-2021 is open till March 31, 2023.
The tweet said, “Last date to file Updated #ITR for AY 2020-21 is 31.03.23. Don’t miss this last chance!
Updated ITRs for AY 2021-22 & 2022-23 can also be filed by 31.03.23 to avoid paying higher tax later.
Pl refer to S. 139(8A) of IT Act, 1961.
Don’t delay, file today!”
Updated Income Tax Returns
The Finance Act 2022, has inserted subsection (8A) in section 139 to enable the filing of an updated return. The section provides that an updated return can be filed by any person irrespective of the fact whether such person has already filed the original, belated or revised return for the relevant assessment year or not.
An updated return can be filed at any time within 24 months from the end of the relevant assessment year. However, an updated return cannot be filed in the following three situations:
Situation 1: An updated return cannot be filed if such updated return:
a) is a return of a loss; or
b) results in lower tax liability determined on the basis of original, revised or belated return filed by assessee; or
c) results in or increasing the refund due on the basis of original, revised or belated return filed by assessee.
Situation 2: A person cannot file updated return wherein:
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 section 133A(2A), in the case such person; or
c) A notice has been issued to the effect that any money, bullion, jewelry 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 a person.
In this situation, an updated return cannot be filed 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.
Situation 3: An updated return cannot be filed for the relevant assessment year wherein:
a) An updated return has been furnished by him;
b) Any proceeding for assessment or reassessment or recomputation or revision of income is pending or has been completed;
c) The Assessing Officer has information in respect of such person under:
The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976;
The Prohibition of Benami Property Transactions Act, 1988;
The Prevention of Money-laundering Act, 2002; or
The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
And the same has been communicated to him, prior to the date of furnishing of updated return
d) Information 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 of updated return;
e) Any prosecution proceedings have been initiated in respect of such person, prior to the date of furnishing of updated return.
f) Assessee is such person or belongs to such class of persons, as may be notified by the Board.
Note:
1. Where a person has furnished a return of loss under section 139(3), he can furnish an updated return. However, such an updated return should be a return of income. In other words, the updated return should not be a return of loss.
2. If as a result of furnishing of an updated return for a previous year, the following is reduced for any subsequent year, then the person shall be required to file the updated return for each such subsequent year:
loss or any part thereof carried forward under Chapter VI; or
unabsorbed depreciation carried forward under Section 32(2); or
tax credit carried forward under Section 115JAA; or
tax credit carried forward under Section 115JD.
Section 140B provides for payment and computation of tax, interest, fee, and additional income-tax on updated return.
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