Is return u/s 139(8A) valid return if income reported is NIL but there are additional taxes paid

This query is : Resolved

Shweta (Querist)
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21 March 2023 Mr A filed the return under section 139(1) for FY 2019-20 declaring income NIL. there was refund of Rs 6,600. He also received the interest of Rs 360 on this refund. The income was reported under the wrong heads in the original return.
He filed the updated return under section 139 (8A).
The income reported in updated return is NIL under correct heads of income. He also paid the additional tax payable of Rs 540 calculated as {(50% of (Tax + interest on refund)} + interest on refund i.e. {50% of (0+360)} + 360 under section 140B.
Is this return a valid return as the income reported is NIL but there are additional taxes paid calculated as per formula of 140B.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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21 March 2023 The taxpayer cannot file an Updated ITR in the following cases:

To report a loss
The updated return reduces the total tax liability declared earlier
The updated return results in a refund or increases the refund claimed earlier
If a search or survey has been initiated against the taxpayer, books of accounts or assets have been confiscated by the tax authority or there are any pending proceedings or prosecutions against the taxpayer.
If your taxable income is below INR 2,50,000 (i.e. Below the basic exemption limit).
If your additional tax liability is NIL.

The Updated return can be filed only if the taxpayer has not filed the return of income earlier or there are errors/omissions in original filed return.
The Updated return can be filed only if the taxpayer has to disclose any additional income which was missed earlier and should pay additional taxes.
As both the conditions to file the return are partially met by Mr. A, he can file Updated return.

Shweta

Shweta (Querist)
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21 March 2023 Thanks for your reply Sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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21 March 2023 You are welcome.

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