Q1: Under what circumstances is filing an updated return mandatory?
A1: Filing an updated return is optional for taxpayers, except for specific situations. Notably, it is mandatory for companies, political parties, and individuals whose accounts require auditing under Section 44AB of the Income-tax Act.
Q2: Can an updated return be filed if it results in a tax refund or increases the existing refund?
A2: No, an updated return cannot be filed if it results in a refund or increases an existing refund based on the earlier return. It is crucial to assess potential refunds before considering an updated return.
Q3: Is there a provision for revising an already filed updated return?
A3: No, an updated return cannot be revised once filed. It is a one-time opportunity for any particular assessment year, and revisions are not allowed under the updated return mechanism.
Q4: When is it necessary to file an updated return for subsequent years?
A4: Filing an updated return for subsequent years is required when the amount of carried forward losses, MAT or AMT credit, or carried forward unabsorbed depreciation is reduced while filing the updated return for the previous year.
Q5: What is the time limit for assessments under section 143 or section 144 for updated returns?
A5: In the case of updated returns, the assessment under section 143 or section 144 can be made at any time before the expiry of 9 months from the end of the financial year in which the updated return is furnished.
Q6: How is the additional tax computed for filing an updated return within 12 months from the end of the relevant assessment year?
A6: The additional tax is equal to 25% of the aggregate of tax and interest payable when the updated return is filed within 12 months from the end of the relevant assessment year. This provides an incentive for timely compliance.
Q7: Can the updated return be verified after the ordinary 30-day verification window?
A7: No, verification of the updated return needs to be done immediately, and there is no provision for extending the verification period beyond the ordinary 30-day window. Timely verification is crucial for seamless processing.
Q8: What happens if someone misses the last date for filing an updated return for the Financial Year 2020-21?
A8: Missing the last date for the Financial Year 2020-21 (until March 31, 2024) may result in increased penalties and difficulties. It is a final opportunity to rectify any oversights, and delays could lead to more cumbersome consequences.
Q9: Can an updated return be filed if any income has been inadvertently omitted in the original return?
A9: Yes, the updated return provides a crucial opportunity to disclose any omitted income, ensuring accurate financial records and compliance with tax regulations.
Q10: How is the challan under Section 140B relevant for non-taxable income, and what are the consequences of non-compliance?
A10: The challan under Section 140B, amounting to Rs. 1000 for non-taxable income, or the applicable tax plus 25% or 50% (as the case may be), must be paid before filing the Income Tax Return. Non-compliance may lead to increased penalties and challenges in the filing process. It is imperative to adhere to these regulations for a smoother financial journey.
Q11: Can an individual file an updated return for a year in which a search has been initiated against them?
A11: No, an updated return cannot be filed for the assessment year relevant to the previous year in which a search is initiated under section 132 and for any assessment year preceding such assessment year.
Q12: What should a taxpayer do if they discover missed income after filing the original return?
A12: In case of discovering missed income post-filing the original return, taxpayers can utilize the updated return mechanism to rectify the omission and ensure accurate financial disclosures.
Q13: Is there any flexibility in the verification process for updated returns?
A13: No, verification of the updated return needs to be done immediately, and there is no provision for extending the verification period beyond the ordinary 30-day window. Timely verification is crucial for seamless processing.
Q14: What is the significance of Schedule 'Part A Gen_139(8A)' and 'Part B ATI' in the updated return form?
A14: These schedules in the relevant ITR form capture essential details like PAN, Aadhaar number, details of earlier returns, reasons for filing the updated return, and head-wise reporting of additional income. They play a crucial role in providing a comprehensive picture of the taxpayer's financial scenario.
Q15: Can an updated return be filed if prosecution proceedings are initiated against the taxpayer?
A15: No, a person cannot file an updated return for any assessment year if prosecution proceedings have been initiated against them for the relevant assessment year.
Q16: How does the computation of tax, interest, and fee differ for those who have filed an earlier return and those who haven't?
A16: For those who have filed an earlier return, the computation considers factors like tax or relief already claimed and the amount of refund issued. For non-filers, the computation includes self-assessment tax, interest, and fees for delayed filing.
Q17: Can a person file an updated return if information about them has been received under specified Acts or DTAA/TIEA?
A17: No, a person cannot file an updated return for any assessment year if the Assessing Officer has information about them under specified Acts, DTAA, or TIEA, and the same has been communicated before filing the updated return.
Q18: What is the significance of filing an updated return within 12 months from the end of the relevant assessment year?
A18: Filing within this period attracts a lower additional tax of 25% of the aggregate of tax and interest payable. It serves as an incentive for taxpayers to comply with the timelines.
Q19: What is the consequence of missing the last opportunity to file an updated return?
A19: Missing the last opportunity may lead to heightened penalties, increased complexities, and challenges in financial management. It is advisable to act promptly to avoid severe repercussions.
Q20: Can a person revise an updated return filed for a specific assessment year?
A20: No, once filed, an updated return cannot be revised. It underscores the importance of accuracy and diligence during the filing process.
