Introduction of Modified Return of Income in ITR-A and Extension of Time for filing till 31.03.2023
Effective from Assessment Year 2022-23, in the case of reorganization of business involving amalgamation or demerger or merger of business of one or more persons, the Resulting Company is required to file a modified return of income “Return” with the Income Tax Department (ITD).
Introduction of Modified Return of Income in “Form ITR-A”:
The Finance Act, 2022, introduced section 170A in the Income Tax Act, 1961 (ITA), effective from 01.04.2022, providing that the resulting company is required to file a return in Form ITR-A within a period of six months from the end of the month in which the order of business reorganization has been issued by the competent authority.
Through Notification No. 110/2022 issued on 19.09.2022, the Central board of direct taxes (CBDT) has introduced Return in “Form ITR-A” under rule 12AD of Income Tax Rules, 1962 which will be effective from 01.11.2022. The said Return shall be furnished electronically on the web portal of ITD within the time limit prescribed under the ITA.
Extension of Time limit for filling Return of income u/s 170A:
Through an order issued u/s 119 of ITA dated 26.09.2022, CBDT extended the timeline for filing the return by the resulting company u/s 170A of ITA to 31.03.2023, where orders of business reorganization had been issued between 01.04.2022 and 30.09.2022.
High Court or tribunal or an Adjudicating Authority as defined in clause (1) of section 5 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016)
Additional Resources:
- Extension of Due Date for Filing of Return of income for Assessment
- Extension of time limits for compliances of income tax
- Extension of Timelines for Filing Form 10B, 10BB, and ITR 7
- Government Extends Deadline to Link PAN with AADHAAR
- Introduction of Disclosure Requirement Related to Significant Economic Presence
- Time Limit for Verification of Return of Income After uploading
Article contributed by Gaurav Paliwal, Associate Director – Taxation Advisory & Compliance Services, MBG Corporate Services