Insertion of sub section of 8A in section 139 w.e.f 01.04.2022

Last Updated On: Feb. 3, 2022, 11:50 p.m.
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INSERTION OF SUB SECTION 8A OF SECTION 139 W.E.F 01.04.2022

Section 139(1) is related to furnishing a Income Tax return within a stipulated time as under:

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.

 

Let us understand section wise in detail.

Section 139(4) and section 139(5) related with Belated Return and revised return respectively.

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. '

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. Both the return should be filed along with payment of Interest and in case of belated return along with late fee too. These are the current provisions in respect of filing of return, Now in Finance bill 2022, new sub section i.e, 8A is proposed to introduce U/S 139 which SEEMS to give benefit to the Assessee beyond 139(4) & 139(5) under the name of Voluntary tax compliance but personal view honestly it will not give any benefits to the assesse so far, reason behind explaining further.

 

UNDER FOLLOWING CIRCUMSTANCES ASSESSEE IS NOT ELEGIBLE TO FILE UPDATED RETURN U/S 139(8A)

If there is loss of return.

In case of Reduced tax liability than before filed belated or revised return

In case of Refund claiming or enhancement of refund.

In case search has been initiated against the assessee U/s 132 or books of account, other documents or any assets re requisitioned U/s 132 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

There is a survey which has been initiated U/s 133A

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.

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.

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

Details 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 

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 12) He is a person or belongs to a class of persons, as maybe notified by the Board in this regard.

 

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