In order to rationalise the time allowed for filing of returns, completion of proceedings, and realization of revenue without undue compliance burden on the taxpayer, and to promote the culture of compliance, The Budget 2016-17 has proposed to amend section 139(5) of the Income Tax Act, 1961 as under:
|Existing Provisions||Proposed Amendments|
Section 139(5) contains provisions regarding for filing of revised returns and provides that if any person, having furnished the return under sub-section (1), or in pursuance of a notice issued under sub-section (1) of section 142 discovers any omission or any wrong statement therein, he may furnish a revised return at any time before one year from the end of the relevant assessment year or completion of assessment, whichever is earlier.
In other word an income tax return for FY 2015-16 (AY 2016-17) can be revised up to 31-03-2018
It is proposed to substitute sub-section (5) of section 139 so as to provide that if any person, having furnished a return under sub-section (1) or under sub-section (4), or in a return furnished in response to notice issued under sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
|Implications: Now belated returns u/s 139(4) can also be revised.|
The proposed amendment will take effect from 1st day of April, 2017 and will, accordingly apply in relation to assessment year 2017-2018 and subsequent years.