PRICING FOR FILING UPDATED RETURNS
What is Updated ITR
Finance Act, 2022 has inserted a new Section 139(8A) in the Income Tax Act,1961 which provides opportunity to file updated Return for last two years i.e. now taxpayers can file ITR of last three years including the current Asstt. Year.
An updated Return is an opportunity to rectify any mistakes or ommissions in earlier filed return or if no return has been filed earlier, then also updated ITR can be filed. However the basic fact in the updated return is that income can't be reduced or any refund can't be claimed.
Also If there is tax liability, there is a provisions of paying additional tax of 25% or 50% depending on the time period within which the updated erturn is filed. The updated return can be filed for two earlier years i.e. in the current F.Yr.2022-23, updated ITR can be filed for A.Yr.2020-21 and A.Yr.2021-22. The A.Yr. 2022-23 can be filed normally upto Dec.2022.
Thus now there is a chance to file three years ITR which was not possible earlier.
However it comes with some conditions and cost which we are discussing in next paras.
Who can file Updated Return?
Any taxpayer can file the updated return. The updated return can be filed even if original return has been filed earlier. Otherwise also i.e. if u have missed the filing of Income tax return earlier, then also updated return can be filed.
Who cannot file Updated Return?
Well, there are certain conditions for filing the updated return. It can't be filed in each and every circumstances. Under following conditions, updated return can't be filed :
(a) In case the Return is of Loss, no updated return can be filed
(b) If you have filed ITR earlier and wish to reduce the tax liability, then no updated return can be filed
(c) If there is refund and also if you wish to increase the refund already claimed through original return, then also no updated return can be filed.
Other Circumstances where updated returns can't be filed:
In following circumstances also, no updated return can be filed :
(a) Where a search has been conducted under section 132 or books of accounts or other documents are called for u/s 132A in case of any person
(b) a survey has been conducted u/s 133A in case of such person
(c) a notice has been issued u/s 132 or 132A to the effect that any money, bullion, jewelllery or valuable article seized in case of any other person belongs to such person
(d) a notice has been issued u/s 132 or 132A to the effect that any books of accounts or other documents seized in case of other persons, belongs to such person
In all the above conditions, the relevant asstt. year pertaining to the previous year in which the search, survey etc. has been made would be covered.
(e) Updated return can't be revised i.e. you can't file updated return again once it is filed.
(f) When any assessment, reassessment, revision proceedings etc. are pending or has been completed in case of any person, then also no updated ITR can be filed.
(g) When Assessing officer has any information against any person under 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 such information has been communicated to him, then also no updated ITR can be filed.
(h) Any prosecution proceedings have been initiated against the person and the same has been communicated to him, then also updated ITR can't be filed