The concept of an updated return was introduced to give taxpayers additional time to correct or update their income tax returns. A taxpayer can file an updated return within 48 months of the end of the relevant assessment year, even if no return was originally filed.
Many taxpayers are using this provision to voluntarily disclose missed income and pay the related tax liability before filing the updated return, as required by law. However, several taxpayers are receiving intimations from the Centralised Processing Centre (CPC) that interest under Section 234B is being charged up to the date of processing of the updated return, even though the entire tax, interest, and additional income-tax had already been paid before filing the return.
