Updated return notified by CBDT via new rule no 12AC on 29th Apr, 2022 , wherein it is allowing filing of return U/S 139(8A) for the assessment year 2020-21 and subsequent years. The applicable form will be ITR-U shall be used to furnish the ITR. The form is currently available in excel based utility is respective F.Y. 2019-20 & F.Y. 2021-21 and it is mentioned that filing u/s 139(8A) enabled.
To download the excel based utility refer >> https://www.incometax.gov.in/iec/foportal/downloads/income-tax-returns
Reasons for filing updated return
- Missed on filing returns for prior years.
- Incorrect income reported
- Wrong heads of income reported
- Wrong tax rates
- Reduction of carried forward losses, unabsorbed depreciation or tax credit
Period of filing of Updated return
These returns can be filed up to 24 months from the end of relevant assessment year.
The government has facilitated the updated return enabled utility for F.Y. 2019-20 & F.Y 2020-21 on Income Tax Portal. Currently Excel based Utility which enables filing U/S 139(8A) are available on the portal.
For F.Y. 19-20, Excel based utility for ITR Form 1, 2 ,3 and 4 which enables filing U/S 139(8A) are available on the portal.
For F.Y. 20-21, Excel based utility for ITR Form 1, 2 ,3 and 4 which enables filing U/S 139(8A) are available on the portal.
However, No utility for ITR Form 5, 6 and 7 are available on the portal.
Can updated return be filed even if original return was not filed?
Yes, even if the original return was not filed, Taxpayer can use the excel based utility wherein filing u/s 139(8A) is enabled to file prior years return which were missed earlier. However, the updated returns cannot be used for obtaining TDS refunds or carrying forward of prior year losses.
Late Fee on filing updated return
No late fees is charged if total income in the return filed is up to basic exemption limit i.e. INR 2,50,000/-.
Late Fees of INR 1,000 will be charged if income greater than INR 2,50,000/- but up to INR 5,00,000/-.
Late Fees of INR 5,000 will be charged if income greater than INR 5,00,000/-.
When updated returns cannot be filed?
Updated return cannot be filed if it leads to the following:
- Decrease in tax liability
- Increase in tax refund
- Carrying forward of losses
- claim of TDS refund
- Search has been initiated U/S 132 or Seizure has been conducted U/S 133A
- Assessment Proceeding U/S 144 have been initiated
Tax Rates applicable on updated returns
Applicable slab rates and tax rates for various person can be referred from article >> https://www.taxledgeradvisor.com/business-tax-filling/
Over and above normal tax rates, a additional 25% of interest and tax has to be paid if return is filed within 12 months from the end of relevant assessment year.
Over and above normal tax rates, a additional 50% of interest and tax has to be paid if return is filed after 12 months but up to 24 moths from the end of relevant assessment year.
Verification of updated return
| Person | Verification |
|---|---|
| Person on whom tax audit was applicable or Political party or company who have filed return using form ITR – 7 | Through Digital Signature Certificate |
| Others | Through Electronic Verification Code or Through Digital Signature Certificate |
Practical scenarios in case where updated return filing is required
- To avail credit facilities from bank.
- To avail benefit of arrears of salary as per section 89(1) of the Income Tax Act
- To avoid penalties or interest charges, if any.
- To create legal income proof.
Need Expert Assistance for updated return filing
For expert assistance on updated return filling in Udaipur and Rajasthan, reach our professionals at Tax Ledger Advisor.