Budget 2025: You will have 4 years, not just 2, to update your income tax returns now

Finance Minister Nirmala Sitharaman on Saturday announced extension of the time limit for filing updated returns for any assessment year.

The time limit is proposed to be extended from the current two years to four years.

Presenting the 14th consecutive Budget under the Narendra Modi government since 2014, Sitharaman also proposed the exemption of TCS (tax collected at source) for remittances for education purposes in cases where education loan is taken from specified financial institutions.

She added that 33,000 taxpayers have availed Vivad Se Vishwas 2.0 scheme to settle direct tax disputes.

The limit for tax deduction on interest income would be doubled to Rs 1 lakh for senior citizens, and the limit for TDS on rent is proposed to be increased to Rs 6 lakh.

Besides, the budget extends the period of incorporation by five years for startups to avail of tax benefits.