Amendment of section 140B.
67. In section 140B of the Income-tax Act, in sub-section (4), with effect from the 1st day of April, 2022,––
(i) in the opening portion, the words “or, as the case may be, on the amount by which the advance tax paid falls short of the assessed tax,” shall be omitted and shall be deemed to have been omitted;
(ii) in clause (a), in sub-clause (i), after the words “earlier return”, the words “, if any” shall be inserted and shall be deemed to have been inserted.
Notes on Clauses:
Clause 67 of the Bill seeks to amend the section 140B of the Income-tax Act relating to tax on updated return.
Sub-section (4) of the said section provides that interest payable under section 234B shall be computed on an amount equal to the assessed tax or the amount by which the advance tax paid falls short of the assessed tax. Further, sub-clause (i) of clause (a) of the said sub-section provides for reduction of advance tax which has been claimed in earlier return of income.
It is proposed to amend the said sub-section to provide that interest payable under section 234B shall be computed on an amount equal to the assessed tax as reduced by the amount of advance tax, the credit for which has been claimed in the earlier return, if any.
These amendments will take effect retrospectively from 1st April, 2022.
