'Updated return blessing in disguise for taxpayers'

Well known chartered accountant Avinash Shanbhogue said an important amendment proposed in Finance Bill, 2022, related to 'updated return' is a blessing in disguise.

Avinash Shanbhouge said updated return provides an opportunity to taxpayers who have genuinely omitted including certain items of income while filing the tax return previously. It incidentally provides another chance to taxpayers who could not understand some of the complexities of the law while filing the original return.

The option is given to a taxpayer to file an 'updated return' regardless of whether s/he has furnished an original return, said Avinash.

"An updated return should not be a return of loss; reduce the total tax liability in the original return claim refund or higher refund that was filed previously," he said.

Where an updated return was furnished for the relevant assessment year, the taxpayer cannot again file yet another updated return for the same assessment year, he added.