(1) Whether ITRU (Updated Return) can be filed incase of Incometax Survey cases after the Budget 2026? Incase updated return is filed, then 100%/ 200% Penalty cannot be imposed? Please advise
(2) For the Survey cases, whether the Assessment will be compulsorily handled by Central Circle? In one of the Survey case, the asessment is still not transferred to Central Circle. Please advise.
If a survey has been conducted under Section 133A, then you CANNOT file ITR-U for that assessment year — the law excludes survey cases from ITR-U eligibility.The 2026 Budget introduced more flexible settlement/immunity options:
If income is under-reported or mis-reported, the taxpayer can avoid prosecution/penalty by paying additional tax equal to 100% of the differential tax (i.e., an extra 100% tax on top of the tax/interest due). For certain unexplained income cases, the extra tax may be 120%, instead of traditional penalties.
Anwering question 2:
No. There is NO legal requirement that every survey case must be handled by the Central Circle.Centre Cirlce is usually for Search cases under Section 132 and Requisition cases under Section 132A
Thank you for the reply. But for point 1, I still have a query, in the budget update, it was stated that the ITR U can be filed even in case of reassessment has been initiated. Whether this covers survey as well?
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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R P S K & Associates
Nashik
CA Inter
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