“Learn about the restrictions on filing updated income tax returns under Section 139(8A) of the Income Tax Act. Discover when updated returns are disallowed, including scenarios involving refunds, ongoing assessments, or expired deadlines.”
Restrictions on filing updated returns under Section 139(8A) play a critical role in ensuring compliance with the Income Tax Act, 1961
Restrictions on Filing Updated Returns Under Section 139(8A)
Situations where Section 139(8A) shall not apply
1 – If the updated return results in a refund
- You cannot file an updated return to claim or enhance a refund.
Example
- Original Return: Filed a return claiming a refund of ₹10,000 but forgot to include additional TDS of ₹5,000.
- Updated Return: Cannot be filed to claim the additional refund of ₹5,000.
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2 – If the updated return does not result in additional tax liability
- The updated return must either increase the income declared earlier or correct an under-reported liability.
Example
- Original Return: Declared ₹10,00,000 income and paid full tax.
- Updated Return: Income remains the same; no additional tax is payable. Such a return cannot be filed under Section 139(8A).
3 – If the assessment, reassessment, or revision for the relevant year is already pending or completed
- You cannot update a return for a year under scrutiny or reassessment proceedings.
Example
- Assessment Year: 2022–23 is under reassessment due to suspected under-reporting.
- Updated Return: Cannot be filed for AY 2022–23 while reassessment proceedings are ongoing.
4 – If it pertains to tax evasion
- If the updated return is filed to evade taxes after receiving a notice or information regarding non-compliance, it is invalid.
Example
- Received Notice: Non-disclosure of ₹5,00,000 income detected by the Income Tax Department.
- Updated Return: Cannot be filed to report this income after detection.
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5 – If it involves loss reduction or carried forward losses
- An updated return cannot be filed to reduce or modify earlier reported losses or to increase carried-forward losses.
Example
- Original Return: Declared a loss of ₹3,00,000.
- Updated Return: Loss revised to ₹4,00,000 to carry forward more. Not allowed under Section 139(8A).
6- If the time limit for filing has expired
- Updated returns can only be filed within 24 months from the end of the relevant assessment year.
Example
- Assessment Year: 2020–21; last date to file the updated return is March 31, 2023.
- Updated Return: Filed in May 2023. Invalid.
Key Takeaways
- Filing an updated return is allowed only to correct genuine errors or omissions, provided it results in additional tax liability.
- Updated returns are not a tool for reducing liabilities, increasing refunds, or addressing issues after proceedings start.
- Timely filing within the permissible 24-month window is crucial.
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