The section 92CD of Income Tax act in India states the details regarding the submission of modified or amended returns. It has been bifurcated in various sub- sections.
While Section 92CC covers all procedures for establishing an APA, Section 92CD of Income Tax Act outlines specifications for filing amended income tax returns (ITR). Within three months after the agreement’s end, everyone who enters into an APA must submit an amended ITR. This updated return has to reflect the modification of your taxable income with respect to signing an APA. Under Section 92CD Modified Return
This Section applies to any taxpayer who has furnished ITR under Section 139 before the date of such an agreement. These amended returns will fulfill the same function as one submitted under Section 139. Additionally, Section 92CD Income Tax Act outlines the procedure for submitting amended returns and completing your Assessing Officer’s evaluations (AO).
The Concept of Advance Pricing Agreements
An advance pricing agreement is signed between any taxpayer and CBDT (Central Board of Direct Taxes) to determine its arm’s length price (ALP) (ALP). Its goals are to resolve transaction disputes, give multinational businesses (MNEs) tax certainty, and boost domestic tax collections.
In India, the requirements of Sections 92 to 92F are intended to establish a legal framework for determining fair, reasonable earnings and taxes. They exist to stop multinational corporations from draining the nation of its riches. The CBDT is permitted under Section 92CC to enter into an APA with any person. The method for submitting updated returns following the execution of an APA is provided by Section 92CD of Income Tax Act.
Return to be filed under which Section? Income Tax
“Return filed under Section” is one of the obligatory fields that the taxpayer must fill out when filing income tax returns. This page examines the many return types submitted under the various section categories as well as what each category means. Below is the knowledge regarding those sections and their sub-sections is provided in brief-
Section 139 Return Filed (1)
This option should be chosen if you are filing your income tax return by the deadline, which for people is on or before July 31.
Section 139 Return Filed (4)
According to Section 139(1), if an income tax return is not filed by the deadline before 31 July, it may still be filed afterward before the end of the assessment year or 31 March. When filing an income tax return after the deadline but before the assessment year has ended, Section 139(4) must be chosen.
Section 139 Return Filed (5)
A revised return may be filed at any time before one year has passed since the end of the relevant assessment year or before the assessment is finished, whichever comes first, in the event that the return submitted in accordance with Sections 139(1) or 139(4) contains any errors or omissions. Consequently, when a corrected return is filed, Section 139 applies (5).
Section 139 Return Filed (9)
In accordance with a notice the Assessing Officer issues, a defective return is corrected.
Section 142 Return Filed (1)
In cases where a return has not been filed, a return is needed to be filed in accordance with a notice given by the Assessing Officer.
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Filed a Return under Section 148
If the income has avoided assessment, the income tax return must be filed in response to a notice from the Assessing Officer.
Section 153A Return Filed
When a search or requisition is made, an Assessing Officer issues a notice, and the income tax return is filed in response.
Filed a Return under Section 153C
When an Assessing Officer believes that any money, bullion, jewelry, or other valuable item or book of account or documents seized or requisitioned during the course of a search belong to someone other than the person from whom it is seized, they should be given to the Assessing Officer having jurisdiction over that other person and that Assessing Officer should proceed further. This choice shall apply to any income tax return submitted in response to a notice of this nature provided by the Assessing Officer.
Section 92CD Return Filed
For an assessment year for which an advance pricing agreement is entered into in accordance with Section 92CC, a modified return must be filed within three months after the end of the month in which the said agreement was entered into in accordance with Section 92CD of Income Tax Act.
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Returned in accordance with Section 119(2) (b)
The CBDT may permit the income-tax authority to accept a late application or claim for any deduction, exemption, refund, or other relief even after the expiration of the time period designated by the Act for making such a claim or application in order to assist taxpayers experiencing genuine hardship.
Sub-sections Under Section 92CD of Income Tax Act
There are various sub-sections of section 92CD of Income Tax act of India. Such subsections of Section 92CD are listed below in brief-
- Section 92CD (1) mandates that anyone who chooses to use an APA must submit a revised ITR within three months.
- Section 92CD (2): All other 92CD provisions would be applicable in the same manner as returns under Section 129. A few exclusions do apply, though.
- Section 92CD (3): This subsection addresses circumstances in which an assessment or reassessment is finished before the time period allotted for providing updated returns has run out. The AO would reassess/recompute your total income for the applicable assessment year if such a return complied with the requirements of subsection (1).
- Section 92CD (4): This pertains to situations where assessment or reassessment processes for an assessment year prior to an advance pricing agreement are still in progress. The AO will conclude assessment/reassessment processes after receiving your corrected return and taking into account the agreement and modified ITR.
- Section 92CD (5) stipulates that an AO must finish the assessment/reassessment process required by sub-section(3) within a year of the fiscal year in which a modified ITR was filed. Regardless of how Section 144C, Section 153, or Section 153B are implemented, this subsection will still be in effect.
The limitation periods under Sections 144C, 153, and 153B would be extended by 12 months, according to the second half of this subsection.
- Section 92CD (6): This specifies when the assessment or reassessment for an assessment year is deemed to be finished as well as that the term “agreement” in Section 92CD of Income Tax Act is referred to in Section 92CC. When an assessment or reassessment order is issued or the limitation time specified in Section 143(2) has expired, the process is finished.
Conclusion
Vakilsearch also provides with the assistance and knowledge regarding the above discussed topic of Income tax Act’s section 92CD modified return. There are various sub-sections of this section 92CD of Income Tax Act are discussed above which provide with the guidance of modifying the return, or under which sub – section such return would be modified. Further the concept of advance pricing is also discussed above which says about the agreement or contract between the taxpayer and the CBDT.
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