The people who have undergone the investigation through the income tax department in the former year shall not able to furnish the updated tax returns.
Before that, the individuals or businesses who have gone with the investigation in the related fiscal year and the former year cannot furnish the updated tax return, as proposed.
Quoting the former circular on November 3 for the updated tax return (under Section 139 8(a), the Central Board of Direct Taxes (CBDT) on February 6 clarified, “In the said circular, in sub-point (iii) of the point (1) of sub-paragraph… the words ‘two assessment years preceding such assessment year’ shall be read as ‘any assessment year preceding such assessment year’.”
So as to set off the losses made against the income or to avail for more refunds, updated returns could not get filed. Merely if the return selected is other than the scrutiny then only the option of the updated return could be taken.
What is an Updated Income Tax Return?
An updated income tax return is a revised or corrected version of a previously filed tax return. It may be updated if there are errors in the original return or if new information becomes available that affects the taxpayer’s tax liability. For example, if a taxpayer receives additional income after filing their tax return, they may need to file an updated income tax return form to reflect that additional income and potentially pay any additional taxes owed.
In general, taxpayers are required to file an updated return within three years from the date the original return was filed or within two years from the date the taxes were paid, whichever is later. However, it is always a good idea to check with the relevant tax authority in your jurisdiction for specific rules and regulations.
