can we claim refund in updated return in Income Tax
No, you cannot claim a refund or increase an existing refund amount by filing an updated return (Form ITR-U) under Section 139(8A) of the Income Tax Act.
The primary purpose of an updated return is to allow taxpayers to voluntarily disclose additional income and pay the required taxes and interest.
Key Restrictions on Refunds in ITR-U
- No New Refund Claims: You cannot file ITR-U if the result of the update is a claim for a refund.
- No Enhancement of Refund: If you already claimed a refund in your original return, you cannot use an updated return to increase that amount.
- No Reduction in Tax Liability: An updated return cannot be filed if it results in a lower tax liability than what was originally declared.
- Additional Tax Requirement: To be valid, an updated return must typically result in an additional tax liability that you must pay along with the return.
Alternatives for Claiming a Refund
If you missed claiming a refund or deductions that would result in a refund, you may consider these options depending on the timeframe:
- Revised Return (u/s 139(5)): If the deadline hasn’t passed (usually December 31 of the relevant Assessment Year), you can file a revised return to claim your refund.
- Condonation of Delay (u/s 119): If the deadline for a revised return has passed, you can file a Condonation of Delay application before the Principal Commissioner of Income Tax to request permission to file a claim for a refund.