Filing an Updated Return
- Section
139(5) allows a taxpayer to file a revised return of income if any
omission or error is discovered in the original return. The Finance Act,
2022 introduced the concept of an updated return, allowing taxpayers a
longer duration to file the return. An updated return can be filed within
one year from the end of the relevant assessment year or before the
completion of the assessment, whichever is earlier. It provides an
opportunity to rectify any mistakes or omissions made in the original
return.
Reporting in Schedules
·
Schedule FA requires reporting of assets held
outside India. Such reporting is required if those assets are held at any time
during the relevant accounting period. Reporting is required even if the asset
is held for a single day during the relevant accounting period.
·
The ITR Forms notified for Assessment Year
2023-24 have replaced the expression "accounting period" with
"calendar year ending as on 31st December 2022". This change implies
that the assessee shall furnish the details of all foreign assets held between 01-01-2022
and 31-12-2022 in return to be filed for the assessment year 2023-24.
Irrespective of the fiscal year followed in the foreign country (like,
Australia follows July to June, Costa Rica follows October to September, etc.),
the reporting is to be made if the specified foreign assets are held on
31-12-2022. This change removes all scope of misunderstanding or miscalculating
the reporting period.
· Return filing under Section 139(1), i.e.,
Original return: On or before the end of the relevant assessment year.
Return filing under Section 139(4), i.e., Belated return: Before the completion of the assessment.
Return filing under Section 139(5), i.e., Revised return: Before the completion of the assessment.
· This form should be furnished electronically. The statement of foreign income offered to tax shall be submitted electronically as prescribed on the e-filing portal of the Income-tax department. The details of relief claimed for the taxes paid outside India shall be reported in 'Schedule TR' of the ITR Form. The taxpayers should ensure the correct computation of relief under DTAA provisions and provide necessary details in Schedule TR.
How can I opt for a lower tax regime?
·
To opt for an alternative tax regime, the
taxpayer must file the specified form before the due date of filing the income
tax return (ITR). The applicable forms and regimes are as follows:
·
Section 115BA: Domestic Company - Form 10-IB
·
Section 115BAA: Domestic Company - Form 10-IC
·
Section 115BAB: Domestic Company - Form 10-ID
·
Section 115BAC: Individuals or HUF - Form 10-IE
·
Section 115BAD: Co-operative society - Form
10-IF
·
The form can be filed through the e-filing
portal of the Income Tax Department. It is important to note that filing Form
10-IE is mandatory only if an individual or HUF has income from a business or
profession. Once an alternative tax regime is opted for, it cannot be withdrawn
for the same or any other previous year.
Logging in on www.incometax.gov.in using
Aadhar number
·
All individuals who have been allotted a PAN and
are eligible for an Aadhar number must inform the Income-tax Department about
their Aadhar number.
·
If a person has linked their PAN and Aadhar,
they can use their Aadhar number as a 'User ID' instead of PAN to log in on the
e-filing portal.
·
This interchangeability of Aadhar and PAN allows
individuals to quote their Aadhar number wherever PAN is required to be quoted,
and vice versa.
Logging in on www.incometax.gov.in through
Net Banking
- The e-filing portal of the Income-tax
Department offers an option to log in through Internet banking.
- This option can be found at the bottom of the
log-in page.
- It is particularly useful for users who have forgotten
their passwords and are unable to reset them.
- The return of income can be filed in two modes: paper mode or e-filing mode.
- If the return is filed electronically, the Assessee has several options:
- E-filing without a Digital Signature
- E-filing through Aadhar OTP (One-Time
Password)
- E-filing under Electronic Verification Code
(EVC)
- If the return is filed using a DSC, Aadhar
OTP, or EVC, there is no need to send the signed copy (ITR-V) to Bengaluru
CPC (Centralized Processing Centre).
- However, if the return is filed without DSC, Aadhar
OTP, or EVC, the assessee must send the signed copy of ITR-V to the Income
Tax Department's Bengaluru CPC address by ordinary post or speed post.
- The time limit for e-verification or submission of ITR-V is 30 days from the date of filing the return of income electronically.
- Previously, the time limit was 120 days, but it has been reduced to 30 days as per Notification No. 5 of 2022, dated 29-7-2022.
- If a taxpayer has a valid reason or a
reasonable cause that prevented them from verifying the return within 30
days, they can request condonation of the delay by providing an
appropriate explanation.
- However, the return will be verified only when
the Income-tax Department approves the condonation request.
Consequences of failing to verify a return within 30 days
- If a person fails to verify a return of income
within 30 days from the date of submission on the e-filing portal, the
return will be considered invalid.
- The consequences applicable to non-filing of a
return will also apply to those who do not verify the return within 30
days.
A. Income exceeding the threshold limit:
- If the income of an individual or HUF
(resident or non-resident) exceeds the maximum exemption limit before
claiming certain deductions or exemptions, filing a return is mandatory.
- These deductions or exemptions include
provisions under Section 10(38), deductions under Section 10A, 10B, 10BA,
exemptions under sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA, or 54GB, and
deductions under Section 80C to 80U.
B. Assets
outside India:
An individual (resident and ordinary resident in India) must file their return of income, even if their income does not exceed the maximum exemption limit, if they:
a. Hold any asset located outside India as a
beneficial owner or otherwise.
b. Have signing authority in any account located
outside India.
c. Are a beneficiary of any asset located outside
India.
C. Seventh Provision to Section 139(1):
· Filing a return of income is mandatory, regardless of the gross total income, if the assessee's case falls under the seventh proviso to Section 139(1).
This provision requires individuals who are not otherwise required to file a return due to their income not exceeding the maximum exemption limit to file a return of income if, during the previous year:
b. They incurred more than Rs. 2 lakhs for themselves
or any other person for travel to a foreign country.
c. They incurred more than Rs. 1 lakh towards the
payment of electricity bills.
d. The total sales, turnover, or gross receipt of
their business exceeds Rs. 60 lakhs during the previous year.
e. The total gross receipts in their profession exceed
Rs. 10 lakhs during the previous year.
f. The total tax deducted and collected during the
previous year is Rs. 25,000 or more (Rs. 50,000 for a resident individual aged
60 years or more).
g. The aggregate deposit in one or more savings bank
accounts is Rs. 50 lakh or more during the previous year.
·
These
situations have been notified by the CBDT via Notification No. 37/2022, dated
21-04-2022.
