• By ADMIN
• Posted 30 Mar, 2023
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Filing ITR After Due Date - Updated Income-tax Return

The last date to file ITR belatedly for the FY 2021-22 (AY 2022-23) was 31.12.2022. Thereafter no ITR can be filed, but in the following situations, it is allowed to file UPDATED RETURN of income with additional tax payment.

A. In case of Return of Income filed for the year.

a. If any tax payable over and above what was paid for the year.

b. If loss claimed in the ITR to be reduced further

c. If any refund claimed in the ITR which are to be reduced further.

B. In case of Return of Income not filed for the year

a. If any tax payable for the year

b. If last year return of loss filed and for the current year return of income

If any loss or any part thereof carried forward under Chapter VI or unabsorbed depreciation carried forward under sub-section (2) of section 32 or tax credit carried forward under section 115JAA or under section 115JD is to be reduced for any subsequent previous year as a result of furnishing of return of income under this sub-section for a previous year, an updated return shall be furnished for each such subsequent previous year.

In the following cases, it is not allowed to file an updated return u/s 139(8A) in the following cases: -

a. In case of updated return already filed for the year.

b. Loss return

c. Return having effect of decreasing the total tax liability which was already filed for the year.

d. Return results in refund cannot be filed. (No refund can be claimed)

e. Return results in increasing the refund already claimed for the year.

f. Any proceeding for assessment or reassessment or recomputation or revision of income under this Act is pending or has been completed for the relevant assessment year.

g. The Assessing Officer has information in respect of such person for the relevant assessment year in his possession under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (13 of 1976) or the Prohibition of Benami Property Transactions Act, 1988 (45 of 1988) or the Prevention of Money-laundering Act, 2002 (15 of 2003) or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015) and the same has been communicated to him, prior to the date of furnishing of updated return.

h. Information for the relevant assessment year 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 updated return.

i. Any prosecution proceedings under Income tax laws have been initiated for the relevant assessment year in respect of such person, prior to the date of furnishing of updated return.

j. 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.

k. Survey has been conducted under section 133A, other than sub-section (2A) of that section, in the case of such person.

l. Notice has been issued to the effect that any money, bullion, jewellery 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

m. 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 person.

Time limit:

Updated return can be filed within 24 months from the end of relevant assessment year:

Example:

For AY 2022-23 the Assessment Year ends on 31.03.2023. In this case updated return can be filed on or before 31.03.2025

What is mean by Additional tax payable in Updated Return

Tax payable for updated return to be computed as follows:-

Step-1: Total tax, surcharge, cess, fee and interest payable under the provisions of the Act to be arrived.

Step-2: Tax credits for TDS, TCS, Foreign Tax Credit, advance tax, self-assessment tax paid in earlier return or otherwise for the year are to be consolidated.

Step-3:Any refund including interest on refund received for the year to be worked out.

Step-4: Amount arrived in Step-1 to be reduced with amount arrived in step-2 and amount arrived in step-3 to be added leading to the balance tax payable for the year.

Step-5: Computation of Additional tax payable

A. If the updated return proposed to be filed within 12 months from the end of the Assessment year

    Additional tax payable = Balance tax payable arrived in Step-4 multiplied by 25%

B. If the updated return proposed to be filed after 12 months and before 24 months from the end of the Assessment year

     Additional tax payable = Balance tax payable arrived in Step-4 multiplied by 50%

Step-6: Total amount payable in updated return is as follows:

Balance tax payable arrived in Step-4 + Additional tax payable arrived in Step-5

Conclusion

It is always better to be proactive to save additional tax payable by way of early planning and filing of Income-tax returns within in due date. Because money saved is equal to money earned twice. Plan in advance and be a tax saver.