Answer

1. F

   Facts

   An updated return is generally not allowed for a year where an assessment proceeding is pending. Finance Act 2026 opened updated returns after a reassessment notice under Sec 148, but a pending scrutiny under Sec 142(1) and 143(2) is different.

2. P

   Provisions and law

   • Sec 139(8A) (now Sec 263(6))Updated return, with restrictions where proceedings are pending
   • Sec 142(1) (now Sec 268(1))Officer can call for a return, accounts, documents or information before making an assessment
3. A

   Analysis

   If you find you missed income, say FD interest of ₹70,000, disclose it in your reply with the computation and pay the tax with interest. Voluntary disclosure during assessment supports a defence against misreporting, although under-reporting penalty may still be proposed. Check whether the notice is part of reassessment, because the rules for updated returns after Sec 148 changed from 1 March 2026.

4. C

   Conclusion

   1. 1Check whether the notice is part of scrutiny or reassessment
   2. 2If scrutiny, disclose the missed income in the reply with computation
   3. 3Pay the tax and interest through e-Pay Tax and attach the challan
   4. 4Take advice on penalty exposure before replying

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.