Sat Feb 01 07:10:00 UTC 2025: ## India Extends Deadline for Filing Updated Income Tax Returns

**New Delhi** – Finance Minister Nirmala Sitharaman announced a significant extension to the deadline for filing updated income tax returns in the Budget 2025. The current two-year window will be expanded to four years, allowing taxpayers more time to correct errors in their returns.

This move builds on a 2022 initiative that allowed taxpayers to voluntarily report previously omitted income. The government reported that approximately 90 lakh taxpayers utilized this facility, paying additional taxes. Sitharaman stated that this demonstrated the government’s trust in taxpayers, leading to the extended deadline.

The budget also includes several other tax relief measures, including:

* **Increased Tax Exemption Limit for Senior Citizens:** The limit for tax deduction on interest income for senior citizens has been doubled to ₹1 lakh.
* **Higher TDS Threshold for Rent:** The threshold for TDS on rental income has been raised to ₹6 lakh.
* **Increased Tax Slab:** The income tax exemption limit for those opting for the new tax regime has increased to ₹12 lakh, resulting in savings of ₹1.1 lakh for those earning ₹25 lakh. This change is projected to reduce direct tax collection by ₹1 lakh crore.

The Finance Minister highlighted the government’s commitment to “Sabka Saath, Sabka Vikas, Sabka Vishwas, aur Sabka Prayas” (collective effort for the collective good) in explaining the policy decisions. She also mentioned that 33,000 taxpayers benefited from the Vivad se Vishwas 2.0 scheme, designed to resolve tax disputes.

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