ITR - U 139 (8A)

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An individual filed an initial tax return declaring NIL income, which was later found to have been reported under incorrect heads. They then attempted to file an updated return under section 139(8A), paying additional tax and interest. Despite the NIL income declaration in the updated return, it is considered valid because additional tax was paid, fulfilling the requirements of section 140B.

Shweta

Shweta (Querist)

20 March 2023 Mr A filed the return under section 139(1) declaring income NIL.

The income was reported under the wrong heads in the original return. he wants to file the updated return under section 139 (8A). Can he do so?
What are his options.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 March 2023 He can't do so in view of nil return.
Updated return can be filed only in case of additional tax payable over original return.

Shweta

Shweta (Querist)

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 on this refund of Rs 360.
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 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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 March 2023 Yes, it's a valid return in view of additional tax paid.

Shweta

Shweta (Querist)

21 March 2023 Thanks so much for your help Sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 March 2023 You are welcome.

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