Income Tax

Provisions for filing updated income tax return for time barred returns on payment of additional fee

Provisions for filing of updated income tax return for time barred returns on payment of additional fee – Union Budget 2022-23
 
Section 139 of the Income Tax Act 1961 contains due dates for filing of Income Tax Return by various categories of taxpayers. However, presently a taxpayer may revise the return after due date, within a specified period before the end of the assessment year or before the completion of assessment, whichever is earlier.
 
However, the time limit provided for filing a revised return may not be adequate in view of utilization of huge information and data etc. 

Updated income tax return introduced – Union Budget 2022-23

In view of the above, the Union Budget 2022-23 has proposed to introduce a new provision in section 139 for filing an updated return of income with additional tax by any person, whether he has filed a return previously for the relevant assessment year, or not.
 
The additional tax shall be an amount equal to twenty five percent or fifty percent on the tax and interest due on the additional income furnished would be required to be paid.
 
The following amendments are proposed for incorporating the above provision:
 
(i) A new sub-section (8A) in section 139 is proposed to be introduced to provide for furnishing of updated return under the new provisions.
 
(ii) A new section 140B has been proposed to provide for the tax required to be paid for opting to file a return under the proposed provisions i.e. sub-section (8A) of section 139.
 
In view of the proposed sub-section (8A) of section 139 and new section 140B, consequential amendments in section 144, section 153, section 234A and section 234B and 276CC have also been made.
 
These amendments will take effect from 1st April, 2022 and shall apply from AY 2022-23 and onwards.
 
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