Section 267: tax on updated return

Where no earlier return was filed

Where no return under Section 263(1) or (4) has been filed, and tax is payable on the return now being furnished under Section 263(6), the assessee must pay that tax together with interest and fee for delay in filing/advance tax default, plus the additional income-tax computed under sub-section (5), all before furnishing the return - with proof of payment attached.

Where an earlier return was already filed

Where a return was already filed under Section 263(1), (4) or (5) (the "earlier return"), and further tax is payable on the updated return after accounting for credits already claimed (and any refund already issued on the earlier return), the assessee must pay that tax with interest, plus the additional income-tax under sub-section (5) - reduced by any interest already paid with the earlier return - before furnishing the updated return.

How the additional income-tax is calculated

The additional income-tax payable at the time of furnishing the updated return under Section 263(6) is:

Extra surcharge for a return filed after a notice

Where an updated return is filed in pursuance of a notice issued under Section 280, within the period specified in that notice, the additional income-tax computed above is increased by a further 10% of the aggregate of tax and interest payable.

What counts as 'tax' for this calculation

For computing the additional income-tax, "tax" includes surcharge and cess, by whatever name called, on such tax.

Board guidelines for removing difficulties

If any difficulty arises in giving effect to this section, the Board may (with prior Central Government approval) issue guidelines by notification to remove the difficulty. Every such guideline must be laid before each House of Parliament for a total of thirty days, which may be in one session or successive sessions; both Houses can modify or annul it, without affecting the validity of anything already done under it.

Frequently asked questions