Section 77B Amendment of Return is read as follows:-
77B(1) Where for a year of assessment a person has furnished a return in accordance with subsection 77(1) or 77A(1), that person may make amendment to such return in an amended return as prescribed by the Director General in respect of the amount of tax or additional tax payable by that person on the chargeable income or on the amount of tax which has been or would have been wrongly repaid to him.
77B(1A) For the purposes of this section, a person who is a company, limited liability partnership, trust body and co-operative society shall furnish to the Director General an amended return in the prescribed form on an electronic medium or by way of electronic transmission in accordance with section 152A.
77B(2) An amended return under subsection (1) shall only be made after the due date for the furnishing of the return in accordance with subsection 77(1) or 77A(1), but not later than six months from that date.
77B(3) For the purposes of this section, the amended return shall—
- specify the amount or additional amount of chargeable income and the amount of tax or additional tax payable on that chargeable income;
- specify the amount of tax payable on the tax which has or would have been wrongly repaid to him;
- specify the increased sum ascertained in accordance with subsection (4); or
- contain such particulars as may be required by the Director General.
77B(4) The tax or additional tax payable under subsection (1) shall be increased by a sum equal to ten per cent of the amount of such tax or additional tax.
77B(5) The amendment under subsection (1) shall only be made once.
77B(6) Where—
- a return for a year of assessment has been furnished in accordance with subsection 77(1) or 77A(1); and
- the Director General has made an assessment for that year of assessment under section 91,
no amendment shall be allowed under this section.
Finance (No. 2) Bill 2023 proposes amendment of section 77B.
Section 77B of the Income Tax Act 1967 is amended by substituting for the words “subsection 77(1) or 77A(1)” wherever appearing the words “subsection 77(1) or subsection 77A(1) or (1B)”.
Overview
The proposed amendment to Section 77B introduces a new subsection (1B), expanding the scope to include entities eligible to make amended returns, particularly those involved in capital asset disposals.
These amended returns can be made after the due date for the initial return but within six months from that date.
The amended returns must specify changes in chargeable income, tax or additional tax payable, and any increased sum, complying with the requirements outlined in subsection (3).
The tax or additional tax payable under subsection (1B) will be subject to a 10% penalty.
Additionally, the amendment specifies that the amendment under subsection (1B) can only be made once. This ensures that entities cannot repeatedly amend their returns, providing a balance between flexibility and preventing misuse of the amendment process.
Related-Article:
Finance (No.2) Bill 2023 – https://www.ccs-co.com/post/finance-no-2-bill-2023
Finance (No. 2) Bill 2023: Amendment of section 2 – https://www.ccs-co.com/post/finance-no-2-bill-2023-amendment-of-section-2
Budget 2024: Further Tax Deduction For Voluntary Carbon Market (VCM) – https://www.ccs-co.com/post/budget-2024-further-tax-deduction-for-voluntary-carbon-market-vcm
Amendment to Section 4 of the ITA 1967 – Gains from the Disposal of Capital Asset – https://www.ccs-co.com/post/amendment-to-section-4-of-the-ita-1967-gains-from-the-disposal-of-capital-asset
Amendment to Section 4B of the ITA 1967 – Extension of the Scope of the Non-Business Income – https://www.ccs-co.com/post/____a
Amendment to Section 6: Income Tax Rates on Capital Asset Disposals – https://www.ccs-co.com/post/amendment-to-section-6-income-tax-rates-on-capital-asset-disposals
New Section 15C of ITA: Tax of Disposal Gains from Foreign Companies with Malaysian Real Property – https://www.ccs-co.com/post/new-section-15c-of-ita-tax-of-disposal-gains-from-foreign-companies-with-malaysian-real-property Amendment to Section 44(7A): Expanded Business Allocation for Charitable Entities – https://www.ccs-co.com/post/amendment-to-section-44-7a-expanded-business-allocation-for-charitable-entities
Evaluating the Impact: Section 61 Amendment on Trust Taxation – https://www.ccs-co.com/post/evaluating-the-impact-section-61-amendment-on-trust-taxation
Amendment to S 77A: New Reporting Rules on Capital Asset Disposal – The Impact of Section 77A(1B) – https://www.ccs-co.com/post/amendment-to-s-77a-new-reporting-rules-on-capital-asset-disposal-the-impact-of-section-77a-1b
Amendment to S 77B: Understanding Section 77B’s Latest Facets – Impact on Amendment of Tax Return – https://www.ccs-co.com/post/amendment-to-s-77b-understanding-section-77b-s-latest-facets-impact-on-amendment-of-tax-return
Evolution of Record-Keeping: Amendments to Section 82 – https://www.ccs-co.com/post/evolution-of-record-keeping-amendments-to-section-82
Transformative Tax Compliance in the Digital Era: Insights into Malaysia’s New Sections 82B and 82C – https://www.ccs-co.com/post/transformative-tax-compliance-in-the-digital-era-insights-into-malaysia-s-new-sections-82b-and-82c
