Finance Minister Nirmala Sitharaman proposed to extend the time limit for filing updated tax returns from 24 months to 48 months in the Union Budget 2025

Deadline to file updated tax return extended in Budget 2025

Finance Minister Nirmala Sitharaman in her budget 2025 speech said that to further encourage voluntary tax compliance, it is proposed to extend the time limit for filing an updated return from the existing 24 months to 48 months from the end of the relevant assessment year.

Budget with ET

Union Budget 2025 Live Updates

Income Tax Budget 2025 Live Updates

Sensex Today | Stock Market LIVE Updates

This means that the time limit is proposed to be extended from the current two years to four years.

These amendments will take effect from April 1, 2025.

Current rules for updated return

According to the Budget Memorandum, “Sub-section (8A) of section 139 of the Act, relates to furnishing of updated return. As per the present provisions, an updated return can be filed upto 24 months from the end of the relevant assessment year. The facility of updated return has promoted voluntary compliance against payment of additional income-tax of 25% of aggregate of tax and interest payable for updated return filed upto 12 months from the end of the relevant assessment year. For updated returns filed after expiry of 12 months and upto 24 months from the end of the relevant assessment year, the additional income-tax of 50% of aggregate of tax and interest is to be paid.”
Growfast
  • Java Programming with ChatGPT: Learn using Generative AI

    Artificial Intelligence(AI)

    Java Programming with ChatGPT: Learn using Generative AI

    By - Metla Sudha Sekhar, IT Specialist and Developer

  • Basics of Generative AI: Unveiling Tomorrows Innovations

    Artificial Intelligence(AI)

    Basics of Generative AI: Unveiling Tomorrows Innovations

    By - Metla Sudha Sekhar, IT Specialist and Developer

  • Generative AI for Dynamic Java Web Applications with ChatGPT

    Artificial Intelligence(AI)

    Generative AI for Dynamic Java Web Applications with ChatGPT

    By - Metla Sudha Sekhar, IT Specialist and Developer

  • Mastering C++ Fundamentals with Generative AI: A Hands-On

    Artificial Intelligence(AI)

    Mastering C++ Fundamentals with Generative AI: A Hands-On

    By - Metla Sudha Sekhar, IT Specialist and Developer

  • Master in Python Language Quickly Using the ChatGPT Open AI

    Artificial Intelligence(AI)

    Master in Python Language Quickly Using the ChatGPT Open AI

    By - Metla Sudha Sekhar, IT Specialist and Developer

  • Performance Marketing for eCommerce Brands

    Marketing

    Performance Marketing for eCommerce Brands

    By - Zafer Mukeri, Founder- Inara Marketers

  • Zero to Hero in Microsoft Excel: Complete Excel guide 2024

    Office Productivity

    Zero to Hero in Microsoft Excel: Complete Excel guide 2024

    By - Metla Sudha Sekhar, IT Specialist and Developer

  • A2Z Of Money

    Finance

    A2Z Of Money

    By - elearnmarkets, Financial Education by StockEdge

  • Modern Marketing Masterclass by Seth Godin

    Marketing

    Modern Marketing Masterclass by Seth Godin

    By - Seth Godin, Former dot com Business Executive and Best Selling Author

  • Vastu Shastra Course

    Astrology

    Vastu Shastra Course

    By - Sachenkumar Rai, Vastu Shashtri

  • Succession Planning Masterclass

    Strategy

    Succession Planning Masterclass

    By - Nigel Penny, Global Strategy Advisor: NSP Strategy Facilitation Ltd.

  • SQL for Data Science along with Data Analytics and Data Visualization

    Data Science

    SQL for Data Science along with Data Analytics and Data Visualization

    By - Metla Sudha Sekhar, IT Specialist and Developer

  • AI and Analytics based Business Strategy

    Artificial Intelligence(AI)

    AI and Analytics based Business Strategy

    By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI

  • A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024

    Web Development

    A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024

    By - Metla Sudha Sekhar, IT Specialist and Developer

  • Digital Marketing Masterclass by Pam Moore

    Marketing

    Digital Marketing Masterclass by Pam Moore

    By - Pam Moore, Digital Transformation and Social Media Expert

  • AI-Powered Python Mastery with Tabnine: Boost Your Coding Skills

    Artificial Intelligence(AI)

    AI-Powered Python Mastery with Tabnine: Boost Your Coding Skills

    By - Metla Sudha Sekhar, IT Specialist and Developer

  • Mastering Microsoft Office: Word, Excel, PowerPoint, and 365

    Office Productivity

    Mastering Microsoft Office: Word, Excel, PowerPoint, and 365

    By - Metla Sudha Sekhar, IT Specialist and Developer

  • Digital marketing - Wordpress Website Development

    Marketing

    Digital marketing - Wordpress Website Development

    By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert

  • Mastering Google Sheets: Unleash the Power of Excel and Advance Analysis

    Office Productivity

    Mastering Google Sheets: Unleash the Power of Excel and Advance Analysis

    By - Metla Sudha Sekhar, IT Specialist and Developer

  • Mastering Full Stack Development: From Frontend to Backend Excellence

    Web Development

    Mastering Full Stack Development: From Frontend to Backend Excellence

    By - Metla Sudha Sekhar, IT Specialist and Developer

  • Financial Literacy i.e Lets Crack the Billionaire Code

    Finance

    Financial Literacy i.e Lets Crack the Billionaire Code

    By - CA Rahul Gupta, CA with 10+ years of experience and Accounting Educator

  • SQL Server Bootcamp 2024: Transform from Beginner to Pro

    Data Science

    SQL Server Bootcamp 2024: Transform from Beginner to Pro

    By - Metla Sudha Sekhar, IT Specialist and Developer


    What is proposed in the Union Budget 2025?

    As per the Budget Memorandum, “With a view to further nudging voluntary compliance, it is proposed to amend the said subsection so as to extend the time-limit to file the updated return from existing 24 months to 48 months from the end of relevant assessment year. Rate of additional income-tax payable for updated return filed after expiry of 24 months and upto 36 months from the end of the relevant assessment year shall be 60% of aggregate of tax and interest payable. The additional income-tax payable for updated return filed after expiry of 36 months and upto 48 months from the end of the relevant assessment year shall be 70% of aggregate of tax and interest payable.”

    "It is further proposed to provide that no updated return shall be furnished by any person where any notice to show-cause under section 148A of the Act has been issued in his case after thirty-six months from the end of the relevant assessment year. However, where subsequently an order is passed under sub-section (3) of section 148A of the Act determining that it is not a fit case to issue notice under section 148 of the Act, updated return may be filed upto 48 months from the end of the relevant assessment year."

    This story originally appeared on: India Times - Author:Faqs of Insurances