Updated Income Tax return u/s 139(8A)

I. Section 139 (8A)

• Applicable to all people;

• Has an option to update his or her or its return within 2 years from the end of the relevant assessment year after filing or non-filing the original/Belated/revised return.

II. Section 139 (8A) does not apply in the following cases:

• If the Updated Return is a Return of Loss;

• If the Updated Return has the effect of reducing tax liability originally declared by the assessee; in his original/ belated/ revised return;

• Where the Updated Return results in refund or increase in a refund;

• Search/Survey has initiated against a person;

• 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, related to, such person,

• updated return has already been furnished, any assessment/ reassessment/revision of income is pending for the relevant assessment year;

• any prosecution proceedings have been initiated.

• 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 return under this subsection.

III. Tax to be paid when return is being updated u/s 139 (8A):

• WHEN NO RETURN IS FILED, TAX WILL BE: 

(a)Tax due on his total income

(b) Interest for default or delay in payment of advance tax

(c) Late fees for filing of return

(d) Additional tax in accordance with the mechanism provided in section 140B.

• WHEN RETURN IS ALREADY FILED:

(a) Tax due on the additional income declared

(b) Interest on delay or default in deposit of advance tax in respect of additional income declared

(c) Additional tax in accordance with the mechanism provided in section 140B

Aggregate Tax in the above cases would be after considering

a) TDS, TCS, Advance Tax, Self-assessment tax, and the amount of credit brought in the original return:

b) TDS or TCS on additional income offered;

c) Foreign tax credit u/s 90 or 91 on extra income offered;

d) Any tax credit availed to be set off u/s 115JAA or section 115JD i.e is not claimed in the former return.

IV. SECTION 140B: Additional Tax (Surcharge + Cess) on Updated Return

• Additional Tax shall be 25% of the aggregate of tax and interest payable in Updated Return if the Updated Return is furnished after the expiry of the time limit of filing revised or belated return but before completion of 12 months from the end of the relevant A.Y.

• Additional Tax shall be 50% of the aggregate of tax and interest payable in Updated Return if the Updated Return is furnished after the expiry of 12 months from the end of the relevant A.Y. but before completion of 24 months from the end of the relevant A.Y.