MY Client has inadvertently forgot to disclose long term capital gains in A.Y. 21-22.shall he now file ITR U. by filing ITR U he will get refund. shall he do so
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Quick Summary
This discussion explores the nuances of filing an Updated Return (ITR U) for Assessment Year 2021-22, particularly when the taxpayer inadvertently forgot to disclose long-term capital gains. A key point of contention is whether an ITR U can be filed to claim a refund, especially if additional tax is due to the new disclosure. While some argue ITR U is primarily for paying tax, others suggest that the late fee under Section 234F effectively covers additional tax, allowing for a refund outcome. The consensus leans towards needing to increase tax liability to file an ITR U for a refund, potentially through condonation of delay if no original return was filed.
In Case of refund, you have to file return, under Section 119(2)(b) of the Income tax act, after Condonation of delay ,( approval from CIT) . ITR U is for payment of Tax not for refund.