The Central Board of Direct Taxes (CBDT) has enabled the e-filing of updated Income Tax Returns (ITR) in the Income Tax Portal for the Assessment Year (AY) 2022-23 or Financial Year (FY) 2021-22.
Taxpayers can now file the updated Income Tax Returns (ITRs) under Section 139(8A) for the current assessment year.
Section 139(5) of the Income Tax Act, 1961 provides the taxpayer an opportunity to revise the return already filed under Section 139(1) or Section 139(4) of the Income Tax Act. This opportunity can be made use of to include any omitted entries or to rectify any mistakes in the return filed earlier.
Assessees cannot file the updated return if the return is a return of loss, results in an increase of refund as per the previously filed return, or if the filing of the return results in a reduced tax liability.
Updated return filing enables the assessee to avoid litigation for evasion of tax and also promotes the assessees to show voluntary compliance to taxability. However, the taxpayers will have to bear the burden of any additional income tax arising from the updated return.