You now have 4 years to file updated tax returns
What's the story
Finance Minister Nirmala Sitharaman has announced an extension in the time limit for filing updated tax returns for any assessment year, while presenting the budget under Prime Minister Narendra Modi's administration.
The deadline has been increased from two years to four years.
This is one of the series of tax-related modifications proposed in the Union Budget 2025.
Education relief
TCS exemption for education loans announced
Sitharaman also proposed an exemption of Tax Collected at Source (TCS) on remittances for educational purposes. This will be applicable when an education loan is procured from specified financial institutions.
The move is aimed at easing the financial burden on students pursuing higher education, especially those studying abroad.
Tax resolution
Vivad Se Vishwas 2.0 scheme benefits 33,000 taxpayers
The Finance Minister also said that 33,000 taxpayers have availed the Vivad Se Vishwas 2.0 scheme to settle their direct tax disputes.
The scheme is part of the government's efforts to simplify the process of tax dispute resolution and minimize litigation in the country's tax regime.
It provides a platform for taxpayers and the income tax department to settle disputes amicably.
Tax relief
Tax deductions for senior citizens and renters increased
In a move that will benefit senior citizens, Sitharaman announced that the limit for tax deduction on interest income will be doubled to ₹1 lakh.
Further, the threshold for Tax Deducted at Source (TDS) on rent will rise to ₹6 lakh.
The measures are aimed at providing financial relief and increasing the disposable income of these particular groups.
Start-up support
Extended tax benefits for start-ups
Further, the Union Budget 2025 also provides for extending the period of incorporation by five years for start-ups looking to avail tax benefits.
This extension is expected to give a boost to the start-up ecosystem in India, by giving them more time to establish their businesses and become eligible for tax incentives.