Who cannot file updated return?

updated return was introduced in Budget 2022. The Income Tax Act, 1961, introduced Section 139(8) to allow taxpayers to file an updated return within specified timelines. The updated return pushes a taxpayer for voluntary compliance. A taxpayer can file an updated return even if he has filed ITR (original, belated or revised) or has not filed ITR for a particular year. However, there are certain situations when an individual is not allowed to file an updated return.Cases when an updated return cannot be filed In the following situations, a taxpayer cannot file an updated return: (i) An updated return being a return of loss

What is updated return and how to file it

(ii) An updated return which leads to decrease in the total tax liability vis-à-vis original ITR (iii) An updated return which results in a refund or increase in the amount of refund vis-a-vis original ITR (iv) If updated return is filed to claim tax refund when original ITR has not been filed Thus, it may be noted that where a taxpayer has not filed the original return then the option of filing an updated return will not be available if such return is sought to be filed to claim a refund. However, if a person has sustained a loss for any previous year and he has already submitted a return of loss for that year within the due date as per section 139(1), he can furnish an updated return for that year where the updated return is a return of income as a result of which tax is being paid. Further, if as a result of furnishing an updated return of income of a previous year (earlier a return of loss), if any loss carried forward under Chapter VI of Income Tax Act or unabsorbed depreciation carried forward or AMT / MAT credit carried forward is to