INCOME TAX AMENDMENTS (FINANCE ACT 2022) FOR CA/CS/CMA

BASIC CONCEPTS
Section 14A – Notwithstanding anything to the contrary contained in this Act, for the
purpose of computing the total income of an assessee –
(1) No deduction shall be allowed to the assessee in respect of expenditure
incurred in relation to income which does not form the part of the total income
under the Act.
(2) The assessing officer shall determine the amount of expenditure incurred in
relation to such income, if having regards to the accounts of the assessee, he
is not satisfied with the correctness of the claim of the assessee in respect of
such expenditure made by the assessee.
(3) The assessing officer has the power to determine the amount of such
expenditure even if where an assessee claims that no expenditure has been
incurred by him in relation to income which does not form part of the total
income under this Act.
The provisions of this section shall apply and shall be deemed to have always
applied in a case where the income, not forming part of the total income under
this Act. Has not accured or arisen or has not been received during the
previous year relevant to an assessment year and the expenditure has been
incurred during the said previous year in relation to such income not forming
part of total income. [Inserted by Finance Act, 2022 w.e.f 01/04/2022 i.e
A.Y 2022-23]

INCOME FROM SALARY

Valuation of medical facilities [ Provision to Section 17(2)]
COVID medical treatment expenditure by the employer: Any sum paid by an
employer in respect of expenditure incurred on medical treatment of employee
or any of his family member in respect of any illness relating to COVID-19
subject to such conditions as the Central Government may, by notification in
the official Gazette, specify in this behalf [Inserted by Finance Act, 2022
w.r.e.f. 01.04.2022 i.e. A.Y 2020-21]

PROFIT AND GAINS OF BUSINESS OR PROFESSION

Section 35: Expenditure on Scientific Research
 Condition for claiming deduction [Amended by Finance Act, 2022, w.r.e.f.
01.04.2021]: The deduction in respect of any sum paid to the research

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 INCOME TAX AMENDMENTS (FINANCE ACT 2022) FOR CA/CS/CMA

associations, university, college or other institution referred to in Section

35(1)(ii)/(iii), or the company referred to in Section 35(1)(iia) shall not be
allowed, unless such research association, university, college or other
institution or company –
(i) Prescribed statement to be furnished
(ii) Certificate to be furnished to the donor.

Section 37:
(1) General Deduction
(2) Expenditure for any offence or prohibited purpose – not allowable
Scope of expenditure for any offence or prohibited purpose [Explanation 3]
[Amended by Finance Act,2022 w.e.f. 01/04/2022 i.e. A.Y 2022-23]: Such
expenditure shall include the expenditure incurred by an assessee, -
(i) For any purpose which is an offence under, or which is prohibited by,
any law for the time being in force, in India or outside India; or
(ii) To provide any benefit or perquisite, in whatever form, to a person,
whether or not carrying on a business or exercising a profession, and
acceptance of such benefit or perquisite by such person is in violation of
any law or rule or regulation or guideline, as the case may be, for the
time being in force, governing the conduct of such person; or
(iii) To compound an offence under any law for the time being in force, in
India or outside India.

Section 40(a)(ii): Income tax

“Tax” shall include any surcharge or cess, by whatever name called, on such tax
[Inserted by Finance Act, 2022 w.r.e.f. 01/04/2005]

Section 43B: certain deductions to be allowed only on actual payment

In case of conversion of interest into loan/borrowing/advance: In case if any interest
is payable and such interest is converted into loan or borrowing or advance or
debenture or any other instrument by which the liability to pay is deferred to a
future date, then the same not be allowed as deduction in the year of conversion,
but shall be allowed in the year in which such converted loan is actually paid.
[Amended by Finance Act, 2022 w.e.f. 01/04/2023 i.e. A.Y 2023-23]

CAPITAL GAIN
CII – 331

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 INCOME TAX AMENDMENTS (FINANCE ACT 2022) FOR CA/CS/CMA

INCOME FROM OTHER SOURCES

Cash gifts, or gifts of movable property, or gift of immovable property [ Section
56(2)(x)]
Exception: this clause shall not apply to any sum of money or any property received –
(i) From any relative
(ii) On the occasion of the marriage of the individual; or
(iii) Under a will or by way of inheritance; or
(iv) In contemplation of death of the payer or donor; or
(v) From any local authority as defined in explanation to section 10(20); or
(vi) From any fund or foundation or university or other educational institution or
hospital or other medical institution or any trust or institution referred to
in section 10(23C); or
However, the exemption shall not be available where any sum of money or
any property has been received by any person referred to in Section 13(3);
(vii) From any trust or institution registered under section 12A or Section 12AA
or 12AB; or
However, the exemption shall not be available where any sum of money or
any property has been received by any person referred to in Section 13(3);
(viii) By any fund or trust or institution or any university or other educational
institution or any hospital or other medical institution referred to in
section 10(23C)(iv)/(v)/(vi)/(via); or
(ix) By way of transaction not regarded as transfer u/s
47(i)/(iv)/(v)/(vi)/(viaa)/(vib)/(vic)/(vica)/(vicb)/(vid)/(vii); or
(x) From an individual by a trust created or established solely for the benefit
of relative of the individual; or
(xi) From such class of persons and subject to such conditions, as may be
prescribed.
(xii) By an individual, from any person, in respect of any expenditure actually
incurred by him on his medical treatment or treatment of any member of
his family, for illness related to COVID-19 subject to such conditions, as
the central government may, by notification in the official Gazette, specify
in this behalf.
(xiii) By a member of the family of a deceased person –
(a) From the employer of the deceased person; or

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(b) From any other person or persons to the extent that such sum or
aggregate of such sum does not exceed ₹ 10 lakh,
Where the cause of death of such person is illness related to COVID-19
and the payment is –
(i) Received within 12 months from the date of death of such person;
and
(ii) Subject to such other conditions, as the central government may, by
notification in the official Gazette, specify in this behalf.
Explanation: for the purposes of clause (xii) and (xiii), “family”, in relation
to an individual means –
(i) The spouse and children of the individual; and
(ii) The parents, brothers and sisters of the individual or any of them,
wholly or mainly dependent on the individual. [ Amended by Finance
Act, 2022 w.e.f. 01/04/2020 i.e AY 2020-21]
Meaning of various terms:
(a) “Property” means the following capital asset of the assessee, namely –
(i) Immovable property being land or building or both;
(ii) Share and securities
(iii) Jewellery
(iv) Archaeological collection
(v) Drawing
(vi) Painting
(vii) Sculptures
(viii) Any work of art; or
(ix) Bullion
And shall include virtual digital asset. [Amended by Finance Act, 2022 w.e.f.
01/04/2023 i.e. A.Y 2023-24]

AGGREGATION OF INCOME AND SET-OFF OF LOSS

Cash credit [ Section 68]: where –
(a) Any sum is found credited in the books of an assessee maintained for any
previous year, and
(b) The assessee offers no explanation about the nature and source thereof or the
explanation offered by him is not, in the opinion of the assessing officer,
satisfactory,

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Then the sum so credited may be charged to income-tax as the income of the
assessee of that previous year.
Where the sum so credited consists of loan or borrowing or any such amount, by
whatever name called, and explanation offered by such assessee shall be deemed
to be not satisfactory, unless, -
(a) The person in whose name such credit is recorded in the books of such
assessee also offers an explanation about the nature and source of such sum so
credited; and
(b) Such explanation in the opinion of the assessing officer aforesaid has been
found to be satisfactory. [Inserted by Finance Act, 2022 w.e.f. 01/04/2023
i.e A.Y 2022-23]

DEDUCTIONS FROM GROSS TOTAL INCOME

Contribution to Pension Scheme of Central Government [Section 80CCD]
Amount of deduction:
(i) In case of salaried employee:
Employee’s contribution [Section 80CCD(1)]: Amount paid or, 10% of salary, ***
whichever is lower.
Employer’s contribution [Section 80CCD(2)]: Amount paid in assessee’s account ***
or, 10% of salary (14% of salary where contribution is made by Central
Government or State Government), whichever is lower. [Inserted by Finance
Act, 2022 w.r.e.f. 01/04/2020]
Total amount of deduction
Deduction in respect of maintenance including medical treatment of a dependent who
is a person with disability [Section 80DD] [Amended by Finance Act, 2022 w.r.f.
01/04/2023 i.e. AY 2023-24]

1. Condition of scheme:
(a) The scheme provides for payment of annuity or lump sum amount for the
benefit of a dependent, being a person with disability, -
(i) In the event of the death of the individual or the member of the HUF
in whose name subscription to the scheme has been made; or
(ii) On attaining the age of 60 years or more by such individual or the
member of the HUF, and the payment or deposit to such scheme has
been discontinued;

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 INCOME TAX AMENDMENTS (FINANCE ACT 2022) FOR CA/CS/CMA

(b) The assessee must nominate either the dependant, being person with disability,
or any other person or a trust to receive the payment on his behalf, for the
benefit of such dependant.

2. Taxability of amount received on death of dependant: if the dependant

disabled predeceases such individual or member of HUF, the amount paid or
deposited under the scheme shall be deemed to be income of assessee of the
previous year in which it is received by the assessee and accordingly be
chargeable to tax as the income of that previous year.
However, the taxability shall not arise to the amount received by the
dependant, being a person with disability, before his death, by way of annuity
or lump sum by application of the condition referred to in point no 1(a)(ii).

ALTERNATIVE MINIMUM TAX

15% of adjusted total income in case of cooperative society [ Amended by
Finance Act, 2022 w.e.f. 01/04/2023 i.e. AY 2023-24]

TDS, TCS AND ADVANCE TAX

Section 194-IA: Payment on transfer of certain immovable property other than
agriculture land [Amended by Finance Act, 2022]
 Rate of tax deduction: 1% of consideration or the stamp duty value of such
property, whichever is higher.
 No TDS in the certain cases: Tax is not required to be deducted at source
where the total amount of consideration for the transfer of immovable
property and the stamp duty value of such property, are both is less than ₹ 50
lakh.

Section 194R: Deduction of tax on benefit or perquisite in respect of business or

profession [ Inserted by Finance Act, 2022 w.e.f. 01/07/2022]
(1) Person responsible for deducting tax at source: Any person responsible for
providing to a resident, any benefit or perquisite, whether convertible into money
or not, arising from business or the exercise of a profession, by such resident.
“Person responsible for providing” means the person providing such benefit or
perquisite, or in case of a company, the company itself including the principal
officer thereof.
Individual or HUF – liable for TDS: An individual or a HUF, whose total sales,
gross receipts or turnover from the business or profession carried on by him

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exceed ₹ 1 crore in case of business or ₹ 50 lakh in case of profession during the

financial year immediately preceding the financial year in which such benefit or
perquisite, as the case may be, is provided by such person, shall be liable to
deduct tax at source under this section.
(2) Time of tax deduction: Tax is deducted at source before providing such benefit or
perquisite.
(3) Rate of tax deduction: 10% of the value or aggregate of value of such benefit or
perquisite.
In a case where the benefit or perquisite, as the case may be, wholly in kind or
partly in case and partly in kind but such part in cash is not sufficient to meet the
liability of deduction of tax in respect of whole of such benefit or perquisite, the
person responsible for providing such benefit or perquisite shall, before releasing
the benefit or perquisite, ensure that tax required to be deducted has been paid
in respect of the benefit or perquisite.
(4) No deduction in certain cases: where the value or aggregate of value of the
benefit or perquisite provided or likely to be provided to such resident during the
financial year does not exceed ₹ 20000.
(5) Power of CBDT to issue guidelines: if any difficult arises in giving effect to the
provisions of this section, the board may, with the prior approval of the central
government, issue guidelines for the purposes of removing the difficulty.
Every guidelines shall, as soon as may be after it is issued, be laid before each
House of Parliament, and shall be binding on the income-tax authorities and on the
person providing any such benefit or perquisite.

Consequences of failure to deduct or pay [ Section 201] [Amended by Finance Act,

2022 w.e.f. 01/04/2022]
 Interest to paid in accordance with the order: where an order is made by the
Assessing Officer for the default, the interest shall be paid by the person in
accordance with such order.

Section 206AB: Special provision for deduction of tax at source for non-filers of
income tax return
 Applicability – Section 206AB is applicable if amount is paid or payable to
specified person.
Specified person means –
o A person who has not furnished the return of income for the assessment
year relevant to the previous year immediately preceding the financial year

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in which tax is required to be deducted, for which the time limit for
furnishing the return of income under section 139(1) has expired and
o The aggregate of tax deducted at source and tax collected at source in his
case is ₹ 50000 or more in the said previous year [Amended by Finance
Act, 2022 w.e.f. 01/04/2022]

Section 206CCA: Special provision for collection of tax at source for non-filers of
income-tax return
× Applicability – the provision of section 206CCA when collectee is a specified
person.
Specified person means a person –
 Who has not furnished the return of income for the assessment year
relevant to the previous year immediately preceding the financial year in
which tax is required to be collected, for which the time limit for
furnishing the return of income under sub-section (1) of section 139 has
expired and
 The aggregate of tax deducted at source and tax collected at source in his
case is rupees fifty thousand or more in the said previous year. [Amended
by Finance Act, 2022 w.e.f. 01/04/22]

Section 234B: Interest for defaults in payment of advance tax

Tax on total income as determined u/s 143(1) shall not include the additional
income tax, if any, payable u/s 140B or section 143
Tax on the total income determined under such regular assessment shall not
include the additional income tax payable u/s 140B. [Amended by Finance Act,
2022 w.e.f. 01/04/2022]

PROVISION FOR FILING OF RETURN OF INCOME

Section 139(1) –
Accordingly, the CBDT has, vide Notification No. 37/2022 dated 21-4-2022,
inserted Rule 12AA to provide that a person, other than a company or a firm, who is
not required to furnish a return under section 139(1), and who fulfils any of the
following conditions during the previous year has to file their return of income on or
before the due date in the prescribed form and manner –
(i) If his total sales, turnover or gross receipt, as the case may be, in the
business exceeds ₹ 60 lakhs during the previous year; or
(ii) If his total gross receipt in profession exceeds ₹ 10 lakhs during the
previous year; or

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(iii) If the aggregate of TDS and TCS during the previous year, in the case of
the person, is ₹ 25,000 or more; or
However, a resident individual who is of the age of 60 years or more, at
any time during the relevant previous year would be required to file return
of income only, if the aggregate of TDS and TCS during the previous year,
in his case, is ₹ 50,000 or more
(iv) The deposit in one or more saving bank account of the person, in aggregate,
is ₹ 50 lakh or more during the previous year.

Section 234A: Interest for defaults in furnishing return of income

Other points:
 Interest is payable in case updated return of income is furnished u/s 139(8A)
 Tax on total income as determined u/s 143(1) shall not include the additional
income-tax, if any, payable under section 140B or section 143
 Tax on the total income determined under regular assessment shall not include
the additional income-tax payable under section 140B [Amended by Finance
Act, 2022 w.e.f. 01/04/2022]

Section 139(8A) Updated Return [Inserted by Finance Act, 2022 w.e.f.

01/04/2022]:
(1) Option to file updated return of income: Any person may furnish an updated
return of income or the income of any other person in respect of which he is
assessable, for the previous year relevant to the assessment year at any time
within 24 months from the end of the relevant assessment year.
This is irrespective of whether or not he has furnished a return u/s 139(1) or
belated return u/s 139(4) or revised return u/s 139(5) for that assessment
year.
For example, an updated return for A.Y. 2023-24 can be filed till 31-3-2026
(2) Non applicability of the provisions of updated return: The provision of updated
return would not apply, if the updated return of such person for the
assessment year –
(i) Is a loss return; or
(ii) Has the effect of decreasing the total tax liability determined on the
basis of return furnished u/s 139(1) or section 139(4) or section 139(5);
or
(iii) Results in refund or increases the refund due on the basis of return
furnished u/s 139(1) or section 139(4) or section 139(5)

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(3) Circumstances in which updated return cannot be furnished: No updated return

can be furnished by any person for the assessment year, where –
(a) An updated return has been furnished by him for the relevant assessment
year; or
(b) Any proceeding for assessment or reassessment or recomputation or revision
of income is pending or has been completed for the relevant assessment in
his case; or
(c) He is such person or belongs to such class of persons, as may be notified
by the CBDT.
(4) Updated return can be filed if original return is a loss return and updated
return is a return of income: if any person has a loss in any previous year and
has furnished a return of loss on or before the due date of filing return of
income u/s 139(1), he shall be allowed to furnish an updated return if such
updated return is a return of income.
For example, if Mr. X has furnished his return of loss for A.Y. 2022-23 on
31/5/2022 consisting of ₹ 5,00,000 as business loss, he can furnish an
updated return for A.Y. 2022-23 upto 31/5/2025 if such updated return is a
return of income.
(5) Updated return to be furnished for subsequent previous year in case (4) above:
if the loss or any part thereof carried forward under chapter VI-A or
unabsorbed depreciation carried forward u/s 32(2) or tax credit carried
forward u/s 115JD is to be reduced for any subsequent previous year as a
result of furnishing of updated return of income for a previous year, an
updated return is required to be furnished for each such subsequent previous
year.

Accordingly, Rule 114AAA specifies the manner of making permanent account number
inoperative.
Sub- Provision
Rule
(1) If a person, who has been allotted PAN as on 1st July, 2017 and is required
to intimate his Aadhaar number u/s 139AA(2), has filed to intimate the same
on or before 31st March, 2022, the PAN of such person would become
inoperative immediately after the said date (i.e., after 31st March, 2022) for
the purposes of furnishing intimating or quoting under the income tax act,
1961.
(2) Accordingly, where a person, whose PAN has become inoperative, is required
to furnish, intimate or quote his PAN under this act, it shall be deemed that

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he has not furnished, intimated or quoted the PAN, as the case may be, in
accordance with the provisions of this act. Consequently, he would be liable
for all the consequences under the act for not furnishing, intimating or quoting
the PAN.
However, the consequences shall have effect from the date specified by the
CBDT i.e., 1/4/2023
(3) Where such person who has not intimated his Aadhaar number on or before
31st March 2022, intimated his Aadhaar number u/s 139AA(2) after 31st
march 2022 after payment of fees specified 234H read with Rule 114(5A),
his PAN would become operative from the date of intimation of Aadhaar
number for the purposes of furnishing, intimating or quoting under the act.
Accordingly, the consequences in sub-rule(2) would not applicable from such
date of intimation.
(4) The principle director general of Income tax (systems) or director general of
income tax (systems) has to specify the formats and standards along with the
procedure for verifying the operational status of PAN under sub-rules (1) and
(2)

Clarification with respect to relaxation of provision of rule 114AAA prescribing the

manner of making PAN inoperative:
Section 139AA(2) makes it mandatory for every person who has been allotted a PAN
as on 1st july, 2017 to intimate his Aadhaar Number so that the Aadhaar and PAN
can be linked. This is required to be done on or before a notified date, failing which
the PAN would become inoperative.

Accordingly, in case of failure to intimate the Aadhaar number by 31/3/2022, the

PAN allotted to the person would be made inoperative. Further, section 234H
provides that where a person who is required to intimate his Aadhaar under section
139AA(2) fails to do so on or before a notified date, he would be liable to pay a fee
not exceeding ₹ 1000, as may be prescribed, at the time of making intimation u/s
139AA(2) after the said date.

Further Rule 114AAA provides that if PAN of a person has become inoperative, he
will not be able to furnish, intimate or quote his PAN and would be liable to all the
consequences under the act for such failure. This will have a number of implications
such as:-
(i) The person would not be able to file return using the inoperative PAN
(ii) Pending returns will not be processed
(iii) Pending refunds cannot be issued to inoperative PANs

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(iv) Pending proceedings as in the case of defective returns cannot be completed

once the PAN is inoperative
(v) Tax will be required to be deducted at a higher rate as PAN becomes
inoperative.
In addition to the above, the tax payer might face difficulty at various other fora
like banks and other financial portals, as PAN is one of the important KYC criterion
for all kinds of financial transactions.
As per Rule 114AAA(2), where a person, whose PAN has become inoperative under
Rule 114AAA(1), is required to furnish, intimate or quote his PAN, it would be
deemed that he has not furnished, intimated or quoted the PAN, as the case may be,
in accordance with the provisions of the act. Consequently, he would be liable for the
consequences under the Act for not furnishing, intimating or quoting the PAN.

In order to have smooth application of section 234H and existing rule 114AAA, it is
clarified that –
 The impact of Rule 114AAA(2) would come into effect from 1st April 2023; and
 The period beginning from 1st April 2022 and ending with 31st march 2023,
would be the period during which Rule 114AAA(2) would not have its negative
consequences.
However, the tax payer would be liable to pay a fee in accordance with section 234H
read with Rule 114(5A).

Section 140B: Computation of tax updated return [Inserted by Finance Act, 2022
w.e.f. 01/04/2022]

The relevant provisions are discussed as under –

(1) Where assessee has not furnished the return earlier – where no return of
income u/s 139(1)/(4) has not furnished, the assessee shall not be liable to pay
such tax together with interest, fee and additional income tax, before
furnishing the return and the return shall be accompanied by proof of payment
of such tax, additional income-tax, interest and fee. The same shall be
computed as under –

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Tax payable on the basis of updated return XXX

Less: Taxes and relief as under
(d) Any amount already paid under an provision of the Act (e.g. advance tax) XXX
(e) Any tax deducted or collected at source. XXX
(f) Any relief of tax claimed u/s 89. XXX
(g) Any relief of tax or deduction claimed u/s 90 or 91 on account of tax XXX
paid in any country outside India.
(h) Any relief of tax claimed u/s 90A on account of tax paid in any specified XXX
territory country outside India.
(i) Amount of tax credit claimed to be set-off in accordance with Section XXX
115JAA or Section 115JD.
ADD: Fee payable u/s 234F for default in furnishing of return. XXX
ADD: Interest Payable-
(a) U/s 234A for delay in furnishing the return, or XXX
(b) U/s 234B for default or short payment of advance tax, or
XXX
(c) U/s 234C for deferment of advance tax;
XXX
ADD: Additional Income tax-
 25% of the aggregate of tax and interest payable if ROI is
XXX
furnished within 12 months from end of relevant AY;
 50% of the aggregate of tax and interest payable if ROI is
XXX
furnished after 12 months but before 24 months from end of
relevant AY.
Total amount payable XXX

(2) Where the assessee has furnished the return of income earlier: where return
of income u/s 139(1)/(4)/(5) (referred to as earlier return) has been furnished
by an assessee, he shall be liable to pay such tax, interest and additional
income tax and the return shall be accompanied by proof of payment of the
amount. The same shall be computed as under –
Tax payable on the basis of updated return xxx
Less: Taxes and relief as under -
(a) Amount of relief or tax referred to Section 140(1), the credit for xxx
which has been taken in the earlier return
(a) Any tax deducted or collected at source on any income which is
subjected to such deduction or collection and which is taken into
account in computing total income and which has not been included in
the earlier return
(a) Any relief of tax or deduction of tax claimed u/s 90 or section 91 on
account of tax paid in a country outside India on such income which
has been included in the earlier return;

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(a) Any relief of tax claimed u/s 90A on account of tax paid in any
specified territory outside India referred to in that section on such
income which has not been included in the earlier return
(a) Any tax credit claimed, to be set-off in accordance with the
provisions of section 115JAA or section 115JD, which has not been
claimed in the earlier return;
Add: fee payable u/s 234F for default in furnishing of return
Add: Interest payable –
(a) u/s 234B for default or short payment of advance tax as reduced by
interest paid in earlier return
(b) u/s 234C for deferment of advance tax as reduced by interest paid in
earlier return;
Add: additional income tax –
 25% of the aggregate of tax and interest payable if ROI is
furnished within 12 months from end of relevant AY; and
 50% of the aggregate of tax and interest payable if ROI is
furnished after 12 months but before 24 months from end of
relevant A.Y
(3) Computation of additional income tax: The additional income tax payable at the
time of furnishing the return u/s 139(8A) shall be equal to, -
Time limit of furnishing updated return Additional income tax payable
After expiry of the time available u/s 25% of aggregate of tax and interest
139(4)/(5) and before completion of the payable
period of 12 months from the end of the
relevant assessment year
After the expiry of 12 months but 50% of aggregate of tax and interest
before completion of 24 months from the payable
end of the relevant assessment year
For the purposes of computation of “additional income tax”, tax shall include
surcharge and cess, by whatever name called, on such tax [Explanation]

(4) Computation of interest payable u/s 234B: Interest payable u/s 234B shall be
computed on an amount equal to the assessed tax or, as the case may be, on the
amount by which the advance tax paid falls short of the assessed tax, where, -
“Assessed tax” means the tax on the total income as declared in the return to be
furnished u/s 139(8A), -
(a) After taking into account, -
(i) The amount of relief or self assessment tax u/s Section 140A(1), the
credit for which has been claimed in the earlier return;

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 INCOME TAX AMENDMENTS (FINANCE ACT 2022) FOR CA/CS/CMA

(ii) TDS/TCS, on any income which is subject to such deduction or

collection and which is taken into account in computing such total
income, which has not been included in the earlier return;
(iii) Any relief of tax or deduction of tax claimed u/s 90 or section 91 on
account of tax paid in a country outside India on such income which has
not been included in the earlier return
(iv) Any relief of tax claimed u/s 90A on account of tax paid in any
specified territory outside India referred to in that section on such
income which has not been included in the earlier return;
(v) Any credit claimed, to be set off in accordance with the provisions of
section 115JAA or section 115JD, which has not been claimed in the
earlier return; and
(b) As increased by the amount of refund, if any, issued in respect of such
earlier return.
(5) Power to CBDT to issue guidelines: In case of any difficulty arises in giving
effect to the provisions of this section, the CBDT may issue guidelines for the
purpose of removing the difficulty, with the approval of the central government,
every guideline issues shall be laid before each house of parliament.
(6) Computation of additional income tax: for the purpose of computation of
“additional income tax”, -
 Tax would include surcharge and cess, by whatever name called, on such
tax.
 The interest payable would be interest chargeable under any provision of
the act, on the income as per updated return furnished u/s 139(8A), as
reduced by interest paid in the earlier return, if any
However, the interest paid in the earlier return would be considered to be nil,
if no earlier return has been furnished.
(7) Interest u/s 234A if no earlier return has been furnished: In a case, where no
earlier return has been furnished, the interest payable u/s 234A has to be
computed on the amount of the tax on the total income as declared in the
updated return u/s 139(8A), in accordance with the provisions of section
140A(1A).
(8) Interest u/s 234C if earlier return has been furnished: Interest payable u/s
234C, where an earlier return has been furnished, has to be computed after
taking into account the income furnished in the return u/s 139(8A) as the return
income.

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