Section 263: Return of income

Section 263: Return of income · Complied AI

(6)

(a)

Any person, whether or not he has furnished a return under sub-section (1) or (4) or (5) for a tax year, may furnish an updated return of his income or the income of any other person in respect of which he is assessable under this Act, at any time within forty-eight months from the end of the financial year succeeding the relevant tax year;

(b)

the provisions of clause (a) shall continue to apply for a tax year if any person has sustained a loss in the said tax year and has furnished a return of loss within the due date specified under sub-section (1) and the updated return is a return of income;

(c)

the provisions of clause (a) shall not apply for a tax year for any person, if–– (i) the updated return is a return of loss;

(ii)

the updated return has the effect of decreasing the total tax liability determined on the basis of return furnished under sub-section (1) or (4) or (5) for the said tax year;

(iii)

the updated return results in refund where no refund was due or increases the refund due on the basis of return furnished under sub-section (1) or (4) or (5) for the said tax year;

(iv)

an updated return has already been furnished;

(v)

any proceeding for assessment or reassessment or recomputation or revision of income under this Act is pending or has been completed for the said tax year;

(vi)

the Assessing Officer is in the possession of information in respect of such person for the said tax year regarding violation of specified laws and the same has been communicated to him prior to the date of furnishing of updated return;

(vii)

information for the said tax year has been received under an agreement referred to in section 159 in respect of such person and the same has been communicated to him, prior to the date of furnishing of updated return;

(viii)

any prosecution proceedings under the Chapter XXII have been initiated for the said tax year in respect of such person, prior to the date of 5 furnishing of updated return; or (ix) thirty-six months have expired from the end of the financial year succeeding the relevant tax year, and any notice to show-cause under section 281has been issued in his case, except where an order has been passed under section 281(3) determining that it is not a fit case to issue 10 notice under section 280; or (x) he is such person or belongs to such class of persons, as notified by the Board in this regard;

(d)

a person shall also not be eligible to furnish an updated return of income, where— 15 (i) a search has been initiated under section 247 or books of account or other documents or any assets are requisitioned under section 248 in the case of that person;

(ii)

a survey has been conducted under section 253, other than sub-section (4) of the said section, in the case of that person; or 20 (iii) a notice has been issued to the effect that any money, bullion, jewellery, virtual digital asset or valuable article or thing, seized or requisitioned under section 247 or 248 in the case of any other person, belongs to that person; or (iv) a notice has been issued to the effect that any books of account or 25 documents, seized or requisitioned under section 247 or 248 in the case of any other person, pertain or pertains to, or any other information contained therein, relate to, that person, for the tax year in which such search is initiated or survey is conducted or requisition is made and any tax year preceding such tax year.

(9)

In this section,–– 50

(a)

“beneficial owner”, in respect of an asset means an individual who has

Proviso

provided, directly or indirectly, consideration for the asset for the immediate or future benefit, direct or indirect, of himself or any other person;

(b)

“beneficiary”, in respect of an asset means an individual who derives benefit from the asset during the tax year and the consideration for such asset has been provided by any person other than such beneficiary;

(c)

“specified entity” means–– (i) research association referred to in Schedule III (Table: Sl. No. 23);

(ii)

association or institution referred to in Schedule III (Table: Sl. No. 24);

(iii)

person referred to in Schedule VII (Table: Sl. No. 2);

(iv)

institution referred to in Schedule III (Table: Sl. No. 25);

(v)

any University or other educational institution or any hospital or other medical institution referred to in Schedule VII (Table: Sl. Nos. 17, 18 and 19);

(vi)

Mutual Fund referred to in Schedule VII (Table: Sl. No. 20 and 21);

(vii)

securitisation trust referred to in Schedule III (Table: Sl. No. 26);

(viii)

Investor Protection Fund referred to in Schedule III (Table: Sl. No. 28 and 29);

(ix)

Core Settlement Guarantee Fund referred to in Schedule III (Table: Sl. No. 30);

(x)

venture capital company or venture capital fund referred to in Schedule V (Table: Sl. No. 6);

(xi)

trade union or association referred to in Schedule III (Table: Sl. No. 31);

(xii)

Board or Authority referred to in Schedule VII (Table: Sl. No. 33 and 40);

(xiii)

Body or Authority or Board or Trust or Commission (by whatever name called) referred to in Schedule III (Table: Sl. No. 36);

(xiv)

infrastructure debt fund referred to in Schedule VII (Table: Sl. No. 46);

(d)

“specified laws” shall refer to the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976, or the Prohibition of Benami Property Transactions Act, 1988, or the Prevention of Money-laundering Act, 2002, or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.