Updated Return 139(8A) for A.Y. 2020-21

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CA Pooja P (Querist)
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12 December 2022 The assessee’s total income for A.Y. 20-21 is 2,00,000 i.e. below Basic Exemption Limit, but failed to file the return. He has been filing returns since 10 years so it is preferable to file NIL return for this year. Since time elapsed, now the only option is to file through updated return. But updated return does not allow ZERO tax payable or refund. This is a ZERO tax payable case. There is no TDS. I can still make him pay 1000 penalty but the column of “amount payable” will be zero which is shown as error while filing the return. How should i proceed with it ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 December 2022 Updated return can be filed only if there is any net tax payable, otherwise not accepted. If it is must try to pay just Rs. 100/- as tax, otherwise not mandatory.

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CA Pooja P

CA Pooja P (Querist)
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13 December 2022 I can try this Sir, but the actual tax PAYABLE will be still zero in my case, i will be paying rs.100 voluntarily. This will again show error of “No tax payable”. Also, can i skip filing the return for this year being below exemption limit ? Or will it attract notice u/s. 142(1) since returns would have been filed for the following years of A.Y. 2021-22 and 2022-23 ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 December 2022 As per rules, when the income is below basic exemption limit in any financial year, it is not mandatory to file relevant ITR. So, better skip it.
No question of any notice, due to returns would be filed in following years.
In case of any query, you can always reply that 'the gross total income was below basic exemption limit.'
(The reply is based on assumptions that there are no other sub-section/s attracting filing of ITR as per section 139(1) of the act)
Secondly, suggestion to pay some amount of tax was based on ....

CA Pooja P

CA Pooja P (Querist)
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13 December 2022 Ok. This solves my doubt. Thank you so much Sir 🙏🏻

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 December 2022 You are welcome ..

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