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Apr 10, 2023 Circulars & Notifications Attachment Link
As per the Finance Bill 2023, Organizations cannot claim the benefit of exemption, if they file an updated return of income.
The Finance Bill 2023 has proposed an amendment to the twentieth proviso to Section 10(23C) and Section 12A(1)(ba), providing that the return of income shall be filed within the time allowed under Section 139(1) or Section 139(4).
With this amendment, Organizations cannot claim the benefit of exemption, if they file an updated return of income. The exemption shall be available only if the return of income is filed within the time allowed to file the original return of income under Section 139(1) or the belated return of income under Section 139(4).
It is to be noted that filing of updated return shall be considered as a non-compliance of condition under section 12A(1)(ba) and consequently section 13(10) and 13(11) shall be applicable. Section 13(10) and (11) provide for taxation where there are specified non-compliances including the non-compliance under section 12A(1)(ba).