Income Tax Budget 2025 Live Updates

Extension of Time Limit for Filing Updated Returns

The Union Budget 2025-26 has introduced an important change regarding the filing of updated returns (ITR-U). The time limit for taxpayers to submit updated returns has now been extended from 24 months to 48 months. This means that taxpayers will now have four years from the end of the relevant assessment year to amend their returns.

In her budget address, Finance Minister Nirmala Sitharaman highlighted that nearly 90 lakh taxpayers voluntarily updated their income and paid additional tax. She further stated that this move is aimed at building greater trust and flexibility in the system.

CA Bimal Jain shared insights, stating that the Finance Minister’s emphasis on making income tax laws more transparent and predictable is a clear indication of the government’s focus on simplification. The proposed changes also include a new income tax bill that is expected to be half the size of the current law, reflecting the shift towards greater clarity and ease in the tax system.

Extended Time Limit for Filing Updated Returns (ITR-U)

One of the major announcements in the Budget is the extension of the time limit for filing updated returns (ITR-U). Previously, taxpayers had only 24 months from the end of the relevant assessment year to file an updated return. However, the new timeline has been extended to 48 months.

In her budget speech, Finance Minister Nirmala Sitharaman highlighted that nearly 90 lakh taxpayers voluntarily updated their incomes by paying additional taxes, signaling growing trust in the system. She emphasized that this change was aimed at providing taxpayers with more flexibility and time to correct their returns if needed.

Union Budget 2025 Income Tax Live: Income Tax Calculator: How much will your taxable liability be under the new proposed tax regime in case you earn over Rs 12,00,000?

Income Tax Budget 2025 Live Updates: The newly introduced tax changes are designed to leave more money in the pockets of citizens, enabling them to contribute to the economy in multiple ways. The minimum tax slab has been raised to Rs 12 lakhs from Rs 7 lakhs. The most striking change in the new regime is the removal of income tax for those earning up to Rs 12 lakhs and the revised tax slabs, which now see the 30% tax bracket apply only for those earning above Rs 24 lakhs. This means significant savings for middle-class earners.

According to Priyank Shah, Co-Founder & CEO of The Financialist, “these revisions aim to give people more financial flexibility, encouraging both increased consumption and enhanced savings and investments. As a result, more and more individuals will likely shift to this new tax regime, as the incentives are strong and appealing. With lower tax liabilities, people now have greater disposable income, which can be used to enhance their financial well-being.”