A substantial 70% extra tax on files after the two-year mark is the catch of the planned extension of the revised ITR filing term from two to four years in the Union Budget 2025. The goal of this action is to deter tax evasion and promote prompt compliance. This article examines the ramifications, professional viewpoints, and actions that taxpayers must take to avoid fines.

In order to rectify prior errors, record extra income, or file missed reports, taxpayers can now file an Updated Income Tax Return (ITR-U) for the preceding four years. This tutorial provides detailed instructions on how to submit an ITR-U, as well as information on who is eligible, deadlines, and penalties.

For AY 2024–2025, the Income Tax Department has released revised tools for ITR Forms 2 and 3. Now, taxpayers have the option to file their taxes online or offline and collect the Section 87A reimbursement. Find more about the changes, difficulties, and actions taxpayers should take to ensure smooth compliance.