Missed Filing Income Tax Return for FY 2019-20 and/or FY 2020-21?

The Finance Act, 2022 has introduced the concept of an ‘UPDATED RETURN’. A new section 139(8A) has been inserted in Income Tax Act, 1961 (the Act) to allow a person to file an updated return of income under certain circumstances.

This is effective from 01st April, 2022, and the time limit provided for filing an updated return is 24 months from the end of the relevant assessment year (AY). In the Financial Year (FY) 2022-23, a person can file an updated return for FY 2019-20 (AY 2020-21) and FY 2020-21 (AY 2021-22).

Who can file an Updated Return?

The following persons are eligible to file an updated return of income:

The following persons are ineligible to file an income tax return:

Who can file an Updated Return?
An additional tax is required to paid by an assessee on the filing of an updated return.

The additional tax is payable at the time of furnishing the updated return shall be equal to:

‘Additional income-tax’ shall include surcharge and cess, on such tax.

Advantages of filing an updated return:

The taxpayers can avoid following on the additional income disclosed in the Updated Return:

The Board has notified Rule 12AC of the Income Tax Rules & also Form ITR-U for filing of updated IT Returns in which the assessee will disclose only the amount of additional income under prescribed income heads, on which additional tax is required to be paid. Also, the exact reasons for filing the updated return will have to be specified. The Form ITR-U shall be required to be filed along with the respective ITR to furnish an updated return of income.

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