What is updated return and its utility to the taxpayer?

Updated return option enables taxpayers to disclose omitted income and pay additional tax with interest consequences.

Section 139(8A) creates a statutory updated return allowing a taxpayer to disclose omitted additional income and pay additional tax and interest. The option is available irrespective of whether an original return was filed, may be exercised only once per assessment year, and cannot be used to decrease reported income or increase losses. Time limited filing windows determine the applicable additional tax and interest consequences, and taxpayers must satisfy the conditions prescribed in section 139(8A) to avail the mechanism.