What is the updated return and its conditions?

What is the updated return under section 139(8A) and its conditions?

Introduction: A new sub-section (8A) in section 139 is proposed to be introduced to provide for the furnishing of updated return under the new provisions.

Section 139 (8A): Any person, whether or not he has furnished a return under sub-section (1) or sub-section (4) or subsection (5), for an assessment year (herein referred to as the relevant assessment year), may furnish an updated return of his income or the income of any other person in respect of which he is assessable under this Act, for the previous year relevant to such assessment year, in the prescribed form, verified in such manner and setting forth such particulars as may be prescribed, at any time within twenty-four months from the end of the relevant assessment year.

Eligibility or Conditions for furnishing the updated return:

• General clause: A person shall not be eligible to furnish an updated return if:
  
  • It is a return of a loss; or
    
  • It has the effect of decreasing the total tax liability determined on the basis of return furnished under subsection (1) or sub-section (4) or sub-section (5); or
    
  • It results in refund or increases the refund due on the basis of return furnished under sub-section (1) or sub-section (4) or sub-section (5), of such person under this Act for the relevant assessment year:
    
  • an updated return has been furnished by him under this sub-section for the relevant assessment year (i.e If already filed); or
    
  • 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 in his case; or
    
  • 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 or the Prohibition of Benami Property Transactions Act, 1988 or the Prevention of Money-laundering Act, 2002 or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and the same has been communicated to him, prior to the date of furnishing of the updated return; or
    
  • 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 the updated return; or
    
  • any prosecution proceedings under the Chapter XXII (Offences and prosecutions) have been initiated for the relevant assessment year in respect of such person, prior to the date of furnishing of the updated return; or
    
  • he is such person or belongs to such class of persons, as may be notified by the Board in this regard.”;

• In Case of “Search and seizure”, “Requisition Books of Account”, or “Survey”:
  A person shall not be eligible to furnish an updated return, where––
  
  • a 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; or
    
  • a survey has been conducted under section 133A, other than sub-section (2A) of that section, in the case such person; or
    
  • a 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; or
    
  • a 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,
    
    for the assessment year relevant to the previous year in which such search is initiated or survey is conducted or requisition is made and two assessment years preceding such assessment year:

Important Note: The return is accompanied by the proof of payment of tax as required under section 140B*, if the return of income is a return furnished under sub-section (8A).
*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 of the Act.

Also Read: 

• How to compute Tax on Updated Return under section 140B?
• Union Budget 2022 amendments proposed in the Income Tax

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