Updated ITR , File Last 2 years ITR after Expiry of Due dates

Updated ITR

Updated ITR provisions in Income Tax inserted by Finance Act 2022. It shall come in to effect from 01.04.2022

Commentary on updated ITR

• Original ITR, Belated ITR (afterDue date) and Revised ITR can be filed within specifie time only. If the taxpayer could not file these returns on time , he can file Update return.
• Updated ITR is introduced by Finance act 2022 w.ef. 01.04.2022 .  Therefore, the Taxpayer shall be entitled to update his original ITR if any or can file an Updated ITR due for filing for any year prior to 1^st April 2022 provided other conditions are satisfied. Considering the existing scheme, a Taxpayer can file Updated ITR for the AY 20-21 and AY 21-22 once the amendment comes into effect
• The objective of the Updated ITR is therefore to promote voluntary compliances by the Taxpayer and reduce potential litigation.
• The Taxpayer is permitted to file an Updated ITR (Under section 139(8A)) whether he has filed a return previously for the relevant assessment year, or not. Thus Any person whether or not he has furnished a return of income for an assessment year can file an UpdatedITR. Therefore, an Individual, Firm, LLP, a Company or AOP or BOI can file updated return of income.
• It is important to note that the specified Trust and Institutions such as
  • Research Association referred u/s10(21),
  • Association referred u/s 10(23A),
  • Mutual Fund referred u/s 10(23D),
  • Securitisation Trust referred u/s 10(23DA),
  • University or College u/s 35(1)(ii)/(iii), etc

are required to file ITR u/s 139(4A) to 139(4D). The ITR filed under these subsections are also treated at par with ITR filed u/s 139(1). Therefore, these specified Institutions are also eligible to update their ITR under the new scheme.

• Time Limit to file updated ITR (within 24 months from the end of the relevant assessment year)
  

  Relevant AY	Last date to file updated ITR
  AY 2020-21	31st March 2023
  AY 2021-22	31St March 2024
  AY 2022-23	31st March 2025

  ……….

• An UpdatedITR can be filed whether the Taxpayer has file his original ITR within the extended time limit provided in section 139 or not.
• In case where the Taxpayer has not filed any ITR u/s 139 in that case also an UpdatedITR can be filed, provided
  • The Updated ITR is not a loss ITR
  • The Updated ITR does not result into refund
• If the Taxpayer has filed ITR u/s 139 (Original/Belated/Revised) then he can update the ITR provided
  • The Updated ITR is not a loss ITR
  • The Updated ITR should not result into decrease in original tax liability or increases refund claimed in earlier ITR
• Taxpayer can update his ITR even if the omission or mistake in the original return was not bonafide
•  Once the Taxpayer files his ITR u/s 139(8A), he shall not be liable to prosecution even if he willfully failed to file his ITR within the due date prescribed u/s 139(1).
• Under the following circumstances, it is provided that the Taxpayer is not eligible to file an Updated ITR
  

  (i)		If search u/s 132 or any books of accounts, assets have been requisitioned u/ 132A has been initiated in case of any person
  (ii)		If any survey u/s 133A of the ITA has been conducted in his case
  (iii)		Notice u/s 153C of the ITA has been issued in case of such person in consequence to any search u/s 132 or requisitioned u/s 132A initiated in case of any third party prior to 1st April 2021
  (iv)		Notice u/s 148 of the ITA has been issued in his case in consequence to search u/s 132 on or after 1st April 2021 in case of third party
  (v)		The Taxpayer is not permitted to revise an Updated ITR filed u/s 139(8A).
  (vi)		If any proceeding for assessment, reassessment and/or revision is pending or same is completed u/s 143(2) or 147 or 263 for any AY
  (vii)		If any of the following information is in possession of the AO which is communicated to the Taxpayer prior to filing of an Updated ITR

  – Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act 1988,

– Prevention of Money

– Laundering Act,2002, or

– The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015

• The Taxpayer shall be required to pay additional tax to correct the ITR which is required to be paid along with the UpdatedITR.
• The Taxpayer can file an UpdatedITR in response to notice issued u/s 142(1) of the Act if he has not filed an ITR u/s 139 earlier. However, if the notice u/s 143(2) has been issued then in that case, the Taxpayer is not eligible to file an UpdatedITR.
• Additional Late fees u/s 234F on Updated ITR

  • The Taxpayer shall be liable to pay additional fee for filing UpdatedITR in the following cases.

    (a)		If an ITR has been filed u/s 139(1), then no fees is payable along with an Updated ITR.
    (b)		If no ITR has been filed, additional fees of Rs.5,000 shall be payable.

Example of updated ITR

Computation of Tax Payable on updated ITR- Additional Tax u/s 140B

• The computation of tax payable on the income returned in the UpdatedITR is similar to normal tax computation.
• Credit of TDS, Advance Tax, relief etc. is required to be allowed.
• However, the next tax payable as per the Updated ITR is required to be increased by
  • 25% if the Updated ITR is filed within the 12 months
  •  50%  if the Updated ITR is filed within after 12 months  but within 24 months

from the end of the relevant AY.

• UpdatedITR shall be treated as invalid if the Taxpayer fails to pay additional tax etc. long with the ITR.

Updated ITR if inquiry is made u/s 148A of Income tax Act

Provisions of Finance Act 2022

Amendment of section 139.

38. In section 139 of the Income-tax Act,—

(i) after sub-section (8), the following sub-section shall be inserted, namely:—

“(8A) Any person, whether or not he has furnished a return under sub-section (1) or sub-section (4) or sub-section (5), for an assessment year (herein referred to as the relevant assessment year), may furnish an updated return of his income or the income of any other person in respect of which he is assessable under this Act, for the previous year relevant to such assessment year, in the prescribed form, verified in such manner and setting forth such particulars as may be prescribed, at any time within twenty-four months from the end of the relevant assessment year:

Provided that the provision of this sub-section shall not apply, if the updated return,—

(a) is a return of a loss; or
(b) has the effect of decreasing the total tax liability determined on the basis of return furnished under sub-section (1) or sub-section (4) or sub-section (5); or
(c) results in refund or increases the refund due on the basis of return furnished under sub-section (1) or sub-section (4) or sub-section (5),

of such person under this Act for the relevant assessment year:

Provided further that a person shall not be eligible to furnish an updated return under this sub-section, where—

(a) a search has been initiated under section 132 or books of account or other documents or any assets are requisitioned under section 132A in the case of such person; or
(b) a survey has been conducted under section 133A, other than sub-section (2A) of that section, in the case such person; or
(c) a notice has been issued to the effect that any money, bullion, jewellery or valuable article or thing, seized or requisitioned under section 132 or section 132A in the case of any other person belongs to such person; or

(d) a notice has been issued to the effect that any books of account or documents, seized or requisitioned under section 132 or section 132A in the case of any other person, pertain or pertains to, or any other information contained therein, relate to, such person,

for the assessment year relevant to the previous year in which such search is initiated or survey is conducted or requisition is made and any assessment year preceding such assessment year:

Provided also that no updated return shall 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 under this Act is pending or has been completed for the relevant assessment year in his case; or

(c) the Assessing Officer has information in respect of such person for the relevant assessment year in his possession under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 or the Prohibition of Benami Property Transactions Act, 1988 or the Prevention of Money-laundering Act, 2002 or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and the same has been communicated to him, prior to the date of furnishing of return under this sub-section; or

(d) information for the relevant assessment year has been received under an agreement referred to in section 90 or section 90A in respect of such person and the same has been communicated to him, prior to the date of furnishing of return under this sub-section; or

(e) any prosecution proceedings under the Chapter XXII have been initiated for the relevant assessment year in respect of such person, prior to the date of furnishing of return under this sub-section; or

(f) he is such person or belongs to such class of persons, as may be notified by the Board in this regard:

Provided also that if any person has sustained a loss in any previous year and has furnished a return of loss in the prescribed from within the time allowed under sub-section (1) and verified in the prescribed manner and containing such other particulars as may be prescribed, he shall be allowed to furnish an updated return where such updated return is a return of income:

Provided also that if the loss or any part thereof carried forward under Chapter VI or unabsorbed depreciation carried forward under sub-section (2) of section 32 or tax credit carried forward under section 115JAA or under section 115JD is to be reduced for any subsequent previous year as a result of funishing of return of income under this sub-section for a previous year, an updated return shall be furnished for each such subsequent previous year.”;

(ii) in sub-section (9), in the Explanation, after clause (c), the following clause shall be inserted, namely:—
“(ca) the return is accompanied by the proof of payment of tax as required under section 140B, if the return of income is a return furnished under sub-section (8A);”.

Insertion of new section 140B.

Tax on updated return.

39. After section 140A of the Income-tax Act, the following section shall be inserted,
namely:—

‘140B. (1) Where no return of income under sub-section (1) or sub-section (4) of section 139 has been furnished by an assessee and tax is payable, on the basis of return to be furnished by such assessee under sub-section (8A) of section 139, after taking into account,—
(i) the amount of tax, if any, already paid as advance tax;
(ii) any tax deducted or collected at source;
(iii) any relief of tax claimed under section 89;
(iv) any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India;

(v) any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section; and
(vi) any tax credit claimed to be set off in accordance with the provisions of section 115JAA or section 115JD,

the assessee shall be liable to pay such tax together with interest and fee payable under any of the provisions of this Act for any delay in furnishing the return or any default or delay in payment of advance tax, along with the payment of additional income-tax computed in accordance with sub-section (3), before furnishing the return  and the return shall be accompanied by proof of payment of such tax, additional income-tax, interest and fee.

(2) Where, return of income under sub-section (1) or sub-section (4) or sub-section (5) of section 139 (referred to as earlier return) has been furnished by an assessee and tax is payable on the basis of return to be furnished by such assessee under sub-section (8A) of section 139,—

(a) after taking into account,—
(i) the amount of relief or tax referred to in sub-section (1) of section 140A, the credit for which has been taken in the earlier return;
(ii) tax deducted or collected at source, in accordance with the provisions of Chapter XVII-B, on any income which is subject to such deduction or collection and which is taken into account in computing total income and which has not
been included in the earlier return;
(iii) any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India on such income which has not been included in the earlier return;
(iv) any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section on such income which has not been included in the earlier return;
(v) any tax credit claimed, to be set off in accordance with the provisions of section 115JAA or section 115JD,which has not been claimed in the earlier return; and

(b) as increased by the amount of refund, if any, issued in respect of such earlier return,
the assessee shall be liable to pay such tax together with interest payable under any provision of this Act for any default or delay in payment of advance tax along with the payment of additional income-tax, as computed in accordance with sub-section (3), as reduced by the amount of interest paid under the provisions of this Act in the earlier return, before furnishing the return and the return shall be accompanied by proof of payment of such tax, additional income-tax, interest and fee.

(3) For the purposes of sub-sections (1) and (2), the additional income-tax payable at the time of furnishing the return under sub-section (8A) of section 139 shall be equal
to,—
(i) twenty-five per cent. of aggregate of tax and interest payable, as determined in sub-section (1) or sub-section (2), as the case may be, if such return is furnished after expiry of the time available under sub-section (4) or sub-section (5) of section 139 and before completion of the period of twelve months from the end of the relevant assessment year; or
(ii) fifty per cent. of aggregate of tax and interest payable, as determined in sub-section (1) or sub-section (2), as the case may be, if such return is furnished after the expiry of twelve months from the end of the relevant assessment year but before completion of the period of twenty-four months from the end of the relevant assessment
year.

Explanation.—For the purposes of computation of “additional income-tax”, tax shall include surcharge and cess, by whatever name called, on such tax.

(4) Notwithstanding anything contained in Explanation 1 to section 234B, for the purposes of sub-section (2), interest payable under section 234B shall be computed on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid falls short of the assessed tax, where, “assessed tax” means the tax on the total income as declared in the return to be furnished under sub-section (8A) of section 139,—

(a) after taking into account,—
(i) the amount of relief or tax referred to in sub-section (1) of section 140A, the credit for which has been claimed in the earlier return;
(ii) tax deducted or collected at source, in accordance with the provisions of Chapter XVII-B, on any income which is subject to such deduction or collection and which is taken into account in computing such total income, which has not been included in the earlier return;

(iii) any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India on such income which has not been included in the earlier return;
(iv) any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section on such income which has not been included in the earlier return;
(v) any tax credit claimed, to be set off in accordance with the provisions of section 115JAA or section 115JD, which has not been claimed in the earlier return; and

(b) as increased by the amount of refund, if any, issued in respect of such earlier return.

(5) If any difficulty arises in giving effect to the provisions of this section, the Board may, with the approval of the Central Government, by notification in the Official Gazette, issue guidelines for the purpose of removing the difficulty.

(6) Every guideline issued under sub-section (5) shall be laid before each House of Parliament.

Explanation.—For the purposes of this section,—

(i) interest payable under section 234A, for the purposes of sub-section (1), shall be computed on the amount of tax on the total income as declared in the return, under sub-section (8A) of section 139, in accordance with the provisions of sub-section (1A) of section 140A;

(ii) interest payable under section 234C,for the purposes of sub-section (2), shall be computed after taking into account the total income furnished in the return under sub-section (8A) of section 139 as the returned income;

(iii) interest payable, for the purposes of sub-section (3), shall be the interest chargeable under any provision of this Act, on the income as per return furnished under sub-section (8A) of section 139, as reduced by interest paid, in accordance with the earlier return, if any:

Provided that for the purposes of this clause, the interest paid in the earlier return shall be nil if such return is an updated return referred to in sub-section (1).’.

Amendment of section 144.

41. In section 144 of the Income-tax Act, in sub-section (1), in clause (a), after the  words, brackets and figure “or sub-section (5)”, the words, brackets, figure and letter “or a updated return under sub-section (8A)” shall be inserted.

Amendment of section 234A.

65. In section 234A of the Income-tax Act, in sub-section (1),—
(i) after the words, brackets and figure “or sub-section (4)”, the words, brackets, figure and letter “or sub-section (8A)” shall be inserted;
(ii) for Explanation 2, the following Explanation shall be substituted, namely:—
‘Explanation 2.—In this sub-section,—
(i) “tax on total income as determined under sub-section (1) of section 143″ shall not include the additional income-tax, if any, payable under section 140B or section 143; and
(ii) tax on the total income determined under regular assessment shall not include the additional income-tax payable under section 140B.’.

Amendment of section 234B.

66. In section 234B of the Income-tax Act, in sub-section (1), for Explanation 3, the following Explanation shall be substituted, namely:—

Explanation 3.—In Explanation 1 and in sub-section (3),—
(i) “tax on total income as determined under sub-section (1) of section 143″ shall not include the additional income-tax, if any, payable under section 140B or section 143; and
(ii) tax on the total income determined under such regular assessment shall not include the additional income-tax payable under section 140B.’.

Amendment of section 276CC.

82. In section 276CC of the Income-tax Act, in the proviso, in clause (ii), in sub-clause (a), after the words “expiry of the assessment year”, the words, brackets, figures and letter “or a return is furnished by him under sub-section (8A) of section 139 within the time provided in that sub-section” shall be inserted

Memorandum of Finance Bill 2022

B. Promoting Voluntary Tax Compliance and Reducing Litigation
Provisions for filing of updated return
Section 139 of the Act is related to the provisions for filing of Income Tax Return by taxpayers.

2. Sub-section (1) of section 139 of the Act casts responsibility on the taxpayer to furnish a return within a definite time period or up to a particular date, that is, the due date which as per this section means:

(a) for an assessee who is a company or a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force, it is 31st day of October of the assessment year;
(b) for an assessee who is required to furnish a report under section 92E, it is 30th day of November of the assessment year; and
(c) for any other assessee, it is 31st day of July of the assessment year.

Alternatively, sub-section (4) of section 139 of the Act facilitates filing of a belated return after the expiry of due date, if such return is furnished before 3 months prior to the end of the relevant assessment year or before the completion of
assessment, whichever is earlier.

Similarly, sub-section (5) of section 139 of the Act provides the taxpayer an opportunity to revise the return filed under sub-section (1) or sub-section (4) in case of any omission or wrong statement, after due date, which is to be filed 3 months before the end of the assessment year or before the completion of assessment, whichever is earlier. Hence, the object of section 139 of the Act is to give reasonable time to the taxpayer to file a correct statement of his income within
the duration specified under the Act.

3. This provision provides an additional time of approximately 5 months to an individual assessee, 2 months to a company/auditable case and 1 month to an assessee who enters into an international transaction or specified domestic
transaction respectively, in a financial year to file belated or revised return. This additional timeline for filing a revised/belated return may not be adequate when we factor in utilization of huge information and data available coupled with the “nudge approach” that motivates the taxpayer towards the desired objective of voluntary tax
compliance, starting with filing of correct tax returns.

4. Hence, it is proposed to introduce a new provision in section 139 of the Act for filing an updated return of income by any person, whether he has filed a return previously for the relevant assessment year, or not. The proposal for updated return over a period longer than that is provided in the existing provisions of Income-tax Act would on the one hand bring use of huge data with the IT Department to a logical conclusion resulting in additional revenue realization and on the other hand, it will facilitate ease of compliance to the taxpayer in a litigation free environment.

5. Hence, it is proposed that the taxpayers may be given some more time under the Act to file particulars of their income for a previous year in an updated return. A payment of additional tax by persons opting to furnish their returns in the newly provided timelines is also required. It is proposed that an amount equal to twenty five percent or fifty percent as additional tax on the tax and interest due on the additional income furnished would be required to be paid. The following amendments to the Act are proposed for incorporating the above provisions: –

I) A new sub-section (8A) in section 139 is proposed to be introduced to provide for furnishing of updated return under the new provisions

in section 139, ––

(a) It is proposed to insert sub-section (8A) in section 139 of the Act to provide that:

(i) Any person, whether or not he has furnished a return under sub-section (1), sub-section (4) or sub-section (5), for an assessment year (herein referred to as the relevant assessment year), may furnish an updated return of his income or the income of any other person in respect of which he is assessable under the Act, for the previous year relevant to such assessment year, within twenty four months from the end of the assessment year. Such return shall be
furnished in the prescribed form and manner and shall contain prescribed particulars.

(ii) The proposed sub-section (8A) of section 139 shall not apply, if the updated return, is a return of a loss or has the effect of decreasing the total tax liability determined on the basis of return furnished under sub-section (1), subsection (4) or sub-section (5) or results in refund or increases the refund due on the basis of return furnished under sub-section (1), sub-section (4) or subsection (5), of such person under the Act for the relevant assessment year 

(iii) A person shall not be eligible to furnish an updated return under the proposed sub-section (8A) of section 139, if: ––
(a) search has been initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of such person, or
(b) a survey has been conducted under section 133A, other than subsection (2A) of that section, in the case such person, or
(c) a notice has been issued to the effect that any money, bullion, jewellery or valuable article or thing, seized or requisitioned under section 132 or section 132A in the case of any other person belongs to such person, or

(d) a notice has been issued to the effect that any books of account or documents, seized or requisitioned under section 132 or section 132A in the case of any other person, pertain or pertains to, or any other information contained therein, relate to, such person.
This provision is for the assessment year relevant to the previous year in which such search is initiated or survey is conducted or requisition is made and two assessment years preceding such assessment year.
(iv) Also, no updated return shall be furnished by any person for the relevant assessment year, where,
(a) an updated return has been furnished by him under the proposed subsection (8A) of section 139 of the Act for the relevant assessment year, or
(b) any proceeding for assessment or reassessment or recomputation or revision of income under the Act is pending or has been completed for the relevant assessment year in his case, or
(c) the Assessing Officer has information in respect of such person for the relevant assessment year in his possession under the Prevention of Money Laundering Act, 2002 or the Black Money (Undisclosed Foreign Income and
Assets) and Imposition of Tax Act, 2015 or the Prohibition of Benami Property Transactions Act, 1988 or The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 and the same has been communicated to him, prior to the date of his filing of return under the proposed sub-section (8A) of section 139 of the Act, or 

(d) information for the relevant assessment has been received under an agreement referred to in sections 90 or 90A of the Act in respect of such person and the same has been communicated to him, prior to the date of his filing of return under the proposed sub-section (8A) of section 139 of the Act, or

(e) any prosecution proceedings under Chapter XXII have been initiated for  the relevant assessment year in respect of such person, prior to the date of his filing of return under the proposed sub-section(8A) of section 139 of the
Act, or
(f) he is a person or belongs to a class of persons, as maybe notified by the Board in this regard.

b) It has also been proposed to amend sub-section (9) of section 139 to provide that a return filed under the proposed sub-section (8A) of the said section 139 shall be defective unless such return is accompanied by the proof of payment of tax as required under the proposed section 140B

II) A new section 140B has been proposed to provide for the tax required to be paid for opting to file a return under the proposed provisions i.e. sub-section (8A) of section 139 of the Act.
I. Where no return furnished earlier: where no return of income under sub-section  (1) or sub-section (4) of section 139 has been furnished by an assessee, he shall before furnishing the return under sub-section (8A) of section 139, be liable to pay the tax due together with interest and fee payable under any provision of the Act for any delay in furnishing the return or any default or delay in payment of advance tax, along with the payment of additional tax. The tax payable shall be computed after taking into account the following:-

Such updated return shall also be accompanied by proof of payment of such tax, additional tax, interest and fee.

II. In the case of an assessee, where, return of income under sub-section (1) or  sub-section (4) or sub-section (5) of section 139 (referred to as earlier return) has been furnished by an assessee, he shall before furnishing the return under sub-section (8A) of section 139, be liable to pay the tax due together with interest and fee payable under any provision of this Act for any delay in furnishing the return or any default or delay in payment of advance tax, along with the payment of additional tax, as reduced by the amount of interest paid under the provisions o the Act in the earlier return,. The
tax payable shall be computed after taking into account the following:

(i) the amount of relief or tax, referred to in sub-section (1) of section 140A, the credit for which has been taken in the earlier return;
(ii) tax deducted or collected at source, in accordance with the provisions of Chapter XVII-B, on any income which is subject to such deduction or collection and which is taken into account in computing total income and which has not been claimed in the earlier return;
(iii) any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India on such income which has not been claimed in the earlier return;
(iv) any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section on such income which has not been claimed in the earlier return;
(v) any tax credit claimed, to be set off in accordance with the provisions of section 115JAA or section 115JD, which has not been claimed in the earlier return

The aforesaid tax shall be increased by the amount of refund, if any, issued in respect of such earlier return.
The updated return, furnished under sub-section (8A) of section 139, shall be accompanied by proof of payment of such tax, additional tax, interest and fee

III) The additional tax, payable at the time of furnishing the return under sub-section (8A) of section 139, shall be equal to twenty-five per cent of aggregate of tax and interest payable, as determined in sub- paragraphs I or II above, if such return is furnished after expiry of the time available under sub-section (4) or sub-section (5) of section 139 and before completion of period of twelve months from the end of the relevant assessment year. However, if such return is furnished after the expiry of twelve months from the end of the relevant assessment year but before completion of the period of twenty-four months from the end of the relevant assessment year, the additional tax payable shall be fifty per cent of aggregate of tax and interest payable, as determined in sub- paragraphs I or II above. 

It is also clarified that for the purposes of computation of “additional income-tax”, tax shall include surcharge and cess, by whatever name called, on such tax.

IV) It is further provided that notwithstanding anything contained in the Explanation 1 to section 234B, in the cases where an earlier return has been furnished, interest payable under section 234B shall be computed on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid falls short of the assessed tax, where, “assessed tax” means the tax on the total income as declared in the return to be furnished under sub-section (8A) of section 139, after taking into account the following :

(i) the amount of relief or tax, referred to in sub-section (1) of section 140A, the credit for which has been taken in the earlier return;

(ii) tax deducted or collected at source, in accordance with the provisions of Chapter XVII-B, on any income which is subject to such deduction or collection and which is taken into account in computing such total income and which has
not been claimed in the earlier return;
(iii) any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India on such income which has not been claimed in the earlier return;
(iv) any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section on such income which has not been claimed in the earlier return;
(v) any tax credit claimed, to be set off in accordance with the provisions of section 115JAA or section 115JD, which has not been claimed in the earlier return. The aforesaid tax shall be increased by the amount of refund, if any, issued in
respect of such earlier return.

V. where no earlier return has been furnished, the interest payable under section 234A shall be computed on the amount of the tax on the total income as declared in the return under sub-section (8A) of section 139. Further, interest payable under section 234C, where an earlier return has not been furnished, shall be computed after taking into account the income furnished in the return under sub-section (8A) of section 139 as the returned income. At the same time, for the computation of additional tax above, the interest payable shall be interest chargeable under any provision of the
Income-tax Act, on the income as per return furnished under sub-section (8A) of section 139, as reduced by interest paid in the earlier return, if any. However, the interest paid in the earlier return shall be considered to be nil if no earlier return has been furnished.

VI. In view of the proposed sub-section (8A) of section 139 and new section 140B, consequential amendments in section 144, section 153, section 234A and section 234B and 276CC have also been made.
These amendments will take effect from 1st April, 2022.

[Clauses 38, 39,41, 48, 64, 65 and 81]

Refer also Last date for ITR filing AY 2022-23

Refer Govt website click here