OPTION TO FILE UPDATED RETURN OF INCOME [SECTION 139(8A)]
(1) Option to file updated return of income – Any person may furnish an updated return of his income or the income of any other person in respect of which he is assessable, for the previous year relevant to the assessment year at any time within 24 months from the end of the relevant assessment year.
This is irrespective of whether or not he has furnished a return under section 139(1) or belated return under section 139(4) or revised return under section 139(5) for that assessment year.
For example, an updated return for A.Y. 2023-24 can be filed till 31.3.2026. assessment year
(2) Non applicability of the provisions of updated return – The provisions of updated return would not apply, if the updated return of such person for that
(1) is a loss return; or
(ii) has the effect of decreasing the total tax liability determined on the basis of return furnished under section 139(1) or section 139(4) or section 139(5); or
(iii) results in refund or increases the refund due on the basis of return furnished under section 139(1) or section 139(4) or section 139(5)
(3) Circumstances in which updated return cannot be furnished – No updated return can be furnished by any person for the relevant assessment year, where
(a) an updated return has been furnished by him under this sub-section for the relevant assessment year; or
(b) any proceeding for assessment or reassessment or recomputation or revision of income is pending or has been completed for the relevant assessment year in his case; or
(C) he is such person or belongs to such class of persons, as may be notified by the CBDT.
Note – There are other circumstances also in which updated return cannot be furnished for the relevant assessment year. For example, where prosecution proceedings are initiated under the relevant provisions of the Income-tax Act, 1961. Those circumstances will be dealt with at Final level
(4) Updated return can be filed if original return is a loss return and
updated return is a return of income – If any person has a loss in any previous year and has furnished a return of loss on or before the due date of filing return of income under section 139(1), he shall be allowed to furnish an updated return if such updated return is a return of income.
For example if Mr. X has furnished his return of loss for A.Y. 2022-23 on 31.5.2022 consisting of 5,00,000 as business loss, he can furnish an updated return for A.Y. 2022-23 upto 31.3.2025 if such updated return is a return of income.
(5) Updated return to be furnished for subsequent previous year in case (4)
above If the loss or any part thereof carried forward under Chapter VI or unabsorbed depreciation carried forward under section 32(2) or tax credit carried forward under section 115JD is to be reduced for any subsequent previous year as a result of furnishing of updated return of income for a previous year, an updated return is required to be furnished for each such subsequent previous year.