ITR Filing for AY2024-25: Section 139(5) of the Income Tax Act permits a taxpayer to submit a revised income tax return in the event of discovering an omission or error in the original return. However, the revised return must be filed three months prior to the relevant assessment year or before the completion of the assessment, whichever comes first.

According to taxmann.com, the Finance Act, 2022 has introduced the concept of an updated return, allowing an assessee a longer period to file the return of income. An updated return can be filed within 24 months from the end of the relevant assessment year, subject to certain conditions and regardless of whether they have filed an original, late, or updated return for the applicable tax year.

It is, thus, possible to submit a revised tax return for a particular year, even if no return was filed previously. However, a payment of either 25% or 50% in additional taxes must accompany this revised return.Also Read

It is also possible to file an updated return even after the expiration of the time limits specified for the filing of a belated return or revised return of income. In the financial year 2024-25, an individual can file an updated return for the assessment years 2022-23 and 2023-24.

Who is not eligible to file an updated return?

All taxpayers have the opportunity to submit a revised tax return. Nevertheless, there are specific situations where such a revision is not permitted.

(a) If a revised tax filing shows a loss
(b) If a revised tax return leads to reduced tax obligations
(c) If a revised tax return results in an increased refund
(d) If an investigation is launched against the taxpayer
(e) If the taxpayer’s financial records or assets are requested
(f) If a survey is conducted on the taxpayer
(g) If documents or assets belonging to the taxpayer are seized or requested from another individual.
(h) If a revised return has already been submitted
(i) If evaluation is still pending or has been finalized
(j) If the Assessing Officer possesses data regarding the taxpayer under designated legislations
(k) If the Assessing Officer possesses information about the taxpayer under Double Taxation Avoidance Agreement or Tax Information Exchange Agreement
(l) If any legal action has been initiated
(m) If pertaining to an individual or group as notified by the Central Board of Direct Taxes

Is there any fee or penalty levied upon taxpayer furnishing updated return?

No fine or charge will be imposed on an individual who wants to provide an updated return. Nevertheless, they must pay an extra tax as per Section 140B.

The extra tax will amount to 25% of the total tax and interest owed by an individual upon filing the updated return, if the return is submitted after the deadline for filing a late or revised return but before the end of the 12-month period from the relevant assessment year.

If the updated return is submitted after 12 months from the end of the relevant assessment year but before the completion of 24 months from the end of the relevant assessment year, the additional tax due will be 50% of the total amount of tax and interest owed.

Additionally, a fee under Section 234F will be imposed if an individual fails to file a return of income for that Assessment Year for which they are submitting an updated return.

Is there any separate form for filing an updated return?

There are no specific ITR forms designated for submitting an amended return. Taxpayers must submit an amended return using the ITR forms specified for the relevant Assessment Year. The amended return must be filed together with the newly designated form ITR-U.