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Budget 2025: Now you will be able to file updated returns of four years ago, how different is it from revised returns; Expert told..

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In the budget presented for the upcoming financial year 2025-26, people have been given a chance to avoid disputes over tax liability. As per the budget announcement of February 1, now any person will be able to file updated returns for up to four years.

However, it must also be noted that if the Income Tax Department has already searched tax arrears or a liability case has been opened, then updated returns will not be able to be filed. Currently, there is a facility to file updated returns for two years.

90 thousand people have filed their updated returns

Let us tell you that under this facility, more than 90 thousand people have filed their updated returns and the government has also received a large amount in the form of tax. In view of this success, the period of updated returns has been increased to four years.

What is the difference between updated returns and revised returns?

Tax expert and chartered accountant Aseem Chawla says that there is a difference between updated returns and revised returns. In the revised return, a taxpayer can give the government the information that he missed and if he has paid more tax, he can also ask for it back. However, updated returns can be filed only when a person feels that he should have paid tax, but did not.

Updated returns cannot be filed to give any information or to reduce tax. The person filing the updated return has to pay additional tax and interest on the outstanding tax. The more delay there is in filing the updated return, the more additional amount will accumulate on the tax.

In the fourth year, up to 70 percent more than the outstanding amount may have to be paid including interest and tax. But after filing the updated return, the department will not ask any questions again and taxpayers can sleep peacefully.

An updated return scheme is being promoted.

Tax experts say that the Income Tax Department is keeping an eye on hundreds of suspicious people with the help of Artificial Intelligence (AI). The government is getting money from the updated return scheme without any search or any case. That is why it is being promoted.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.