Finance Bill, 2026 Print lost in the pages Part2 [Revised Return, Reassessment and Updated Return]

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers Income Tax--Finance Bill, 2026 Print lost in the pages -- Part-2 [Revised Return, Reassessment and Updated Return] Srivatsan Ranganathan In a series of write ups the author has brought out the fine prints of the provisions of the Finance Bill, 2026. In this second part he has dealt the points on revised return, updated return and reassessment provisions. 1. Revised return Finance Bill, 2026 has extended the time limit for filing a revised return. Currently the time limit for filing a revised return is 9 months from the end of the relevant financial year i.e. December 31st of every year. This is now extended to up to 12 months until March 31st of the relevant assessment year but with a caveat. The extended period of 3 months beyond 9 months will be available only with the payment of a fee (fine) not exceeding -- (a) Rs. 1,000 where the total income does not exceed Rs. 500,000 (b) Rs. 5,000 where the total income exceeds Rs. 500,000 Since being a fee/fine there is no discretion available to have this waived. Also to note is the fact that the fee is payable only if the revision is done after 31st December and not before this period. This amendment is made in the 1961 law as well as in the 2025 law by amending section 139 and by inserting Section 234-I for the levy of fee. In the 2025 Act, sections 263 and 428(b) are duly amended in pari materia with the 1961 Act giving an analogous reading. There is no time limit extension done for a belated return which will still remain within 9 months from the end of the relevant financial year/tax year in both the 1961/2025 laws. Thus, only if the original return is filed before the due date the logic of a revised return would kick in. A lapse in filing the original return or the belated return will be curable only by filing an updated return where only a positive income can be offered or the loss be reduced and not otherwise. Updated return can/may also be filed for a revised return as well. 2. Return arising out of a reassessment Under the 1961 Act, reassessment is possible for -- (a) Income escaping assessment post an already filed return of income SUBSCRIBE FOR FULL CONTENT OR Try Reload the Page

The Tax Publishers

Income Tax--Finance Bill, 2026

Print lost in the pages -- Part-2 [Revised Return, Reassessment and Updated Return]

Srivatsan Ranganathan

In a series of write ups the author has brought out the fine prints of the provisions of the Finance Bill, 2026. In this second part he has dealt the points on revised return, updated return and reassessment provisions.

1. Revised return

Finance Bill, 2026 has extended the time limit for filing a revised return. Currently the time limit for filing a revised return is 9 months from the end of the relevant financial year i.e. December 31st of every year. This is now extended to up to 12 months until March 31st of the relevant assessment year but with a caveat. The extended period of 3 months beyond 9 months will be available only with the payment of a fee (fine) not exceeding --

(a) Rs. 1,000 where the total income does not exceed Rs. 500,000

(b) Rs. 5,000 where the total income exceeds Rs. 500,000

Since being a fee/fine there is no discretion available to have this waived. Also to note is the fact that the fee is payable only if the revision is done after 31st December and not before this period.

This amendment is made in the 1961 law as well as in the 2025 law by amending section 139 and by inserting Section 234-I for the levy of fee.

In the 2025 Act, sections 263 and 428(b) are duly amended in pari materia with the 1961 Act giving an analogous reading.

There is no time limit extension done for a belated return which will still remain within 9 months from the end of the relevant financial year/tax year in both the 1961/2025 laws. Thus, only if the original return is filed before the due date the logic of a revised return would kick in.

A lapse in filing the original return or the belated return will be curable only by filing an updated return where only a positive income can be offered or the loss be reduced and not otherwise. Updated return can/may also be filed for a revised return as well.

2. Return arising out of a reassessment

Under the 1961 Act, reassessment is possible for --

(a) Income escaping assessment post an already filed return of income

SUBSCRIBE FOR FULL CONTENT

SUBSCRIBE FOR FULL CONTENT

OR Try Reload the Page