Business News
2 min read | Updated on February 01, 2025, 14:58 IST
SUMMARY
Budget 2025-26: The government has proposed extending the deadline for filing updated income tax returns (ITR-U) from 2 years to 4 years, allowing taxpayers more time to disclose additional income voluntarily.
The government proposed to extend the time-limit to file the updated return from the existing 24 months to 48 months from the end of the relevant assessment year.
The government has proposed to extend the deadline to file updated income tax returns (ITR-U) from 2 years to 4 years, allowing taxpayers more time to correct omissions or disclose additional income voluntarily.
According to the Budget 2025-26 document, taxpayers will now be able to file updated returns up to 48 months from the end of the relevant assessment year. However, an additional tax will be applicable based on the delay in filing.
If the updated return is filed between 24 and 36 months, an additional tax of 60% of the aggregate of tax and interest payable will be levied.
For returns filed between 36 and 48 months, the additional tax will be 70% of the total tax and interest payable.
The government has introduced mandatory reporting of crypto-asset transactions, requiring prescribed entities to submit transaction details to tax authorities.
The budget also simplifies taxation for self-occupied properties, clarifying that the annual value of a house will be treated as nil if the owner resides in it or is unable to occupy it for any reason.
The budget also proposes key measures to simplify tax compliance for businesses and individuals.
Tax Collection at Source (TCS) will not be collected on the sale of specified goods worth more than ₹50 lakh.
The budget proposes to omit Sections 206AB and 206CCA, which mandated higher TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) for non-filers of income tax returns. This will ease compliance for deductors and collectors.
The definition of "forest produce" under Section 206C(1) has been rationalised to remove ambiguity. TCS will now apply only to forest produce obtained under a forest lease.
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