CBDT Notifies Manner & Form for filing Updated ITR Returns U/s 139(8A)

CBDT through Notification No. 48/2022 Dated 29th April 2022 notifies Form and Manner for filing Updated ITR Returns under section 139(8A).

• On April 29, 2022, the CBDT has issued the New income tax rules i.e Income-tax (Eleventh Amendment) Rules, 2022 to amend the OLD income rule i.e Income-tax Rules, 1962 & introduces manner for filing updated ITR & Form ITR-U (ITR for updated return).
• Updated income tax return can be submitted from the FY 2019-20 [AY 2020-21] onwards. The Income tax return shall be submitted in form Number - ITR-U.
• The return of income to be submitted by any person who is eligible to file such return under section 139(8A) for the AY beginning on the 1st day of April, 2020 and later AY must be on the Form ITR-U and validated in the manner described therein.
• ITR-Us can be submitted within two years of the end of the relevant assessment year — a convenience introduced in the Budget 2022-23 – subject to payment of any outstanding taxes. This bill aims to eradicate any errors or omissions made by taxpayers.

Key Changes under Income-tax (Eleventh Amendment) Rules, 2022:

• New Rule 12AC, which specifies Updated ITR has been inserted, namely:

The Reason for Behind Introducing Section 139(8A)

It is recommended to start a new provision under section 139(8A) of the Act for furnishing the Updated income tax return of income by any individual, whether or not he has previously supplied a return for the associated assessment year. The present income tax act provides a recommendation for an updated return within a longer period of time.

Income tax Sub Section(8A) under section 139(8A) is Not Applied

New proposed provision of Sub Section(8A) under section 139 will not apply in case of the updated Income tax return under the following case:

• In case Filling consequences will results in the Income tax refund or increases the income tax refund Timeline on the grounds of the Income tax return  submitted filed u/s 139(1), (4) or (5)
• In case the Income tax return is a loss return.
• In case the holds the effect of decreasing the total tax liability find on the grounds of the Income tax return submitted under section 139(1), (4) or (5)

            In summary : Updated ITR can only be filed condition it rises Income tax Liability.

Duration of Income Tax return Filing

Any individual might file the updated ITR of his income or the other individual’s income towards which the person is assessable beneath the act for Assessment Year related to the assessment year in 24 months from the finish of the assessment year with another tax. These returns would be filed in the specified format form & manner with the required information.

• Due-date for filing ‘Updated Return under section 139(8A)’ shall be 24 month i.e two year from the end of the relevant AY. 

Advantages and disadvantages of ITR Section 139(8A)

The Honorable Finance Minister introduced the Finance Budget for 2022-23 in the Lok Sabha on February 1st, which included a proposal to add a provision for filing updated income tax returns.

The following proviso is included to prevent assessees from abusing the provisions of the 'Updated Return' in the event that search or survey procedures are commenced against them or in the case of any other person where documents, books, or valuables pertaining to such assesee are discovered.

• It used to provide you more chances to make up for income that was missed in a previous tax return.
• Any further legal proceedings and prosecution would advantage from the same.
• The amended return would support the resolution of the lawsuit.

Additional Tax to get submitted with Updated Income tax return under New Section 140B

A new section 140B should be introduced to provide for the tax that must be provided for the amended return to be filed:

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