Budget Update: Big relief to taxpayers on ITR in the budget, now they can file returns in 4 years..

Union Finance Minister Nirmala Sitharaman on Saturday gave a big relief regarding updated income tax returns for any assessment year. In the budget, the government has announced to extend the deadline for filing ITR. Earlier you were given up to two years. Now it has been increased to four. Let us tell you that under the new tax regime, the government has announced not to collect any tax on annual income up to Rs 12 lakh. Let us also tell you what other announcements have been made apart from return filing.

These important announcements were made.

The country's Finance Minister Nirmala Sitharaman has proposed to extend the deadline for filing ITR from the current two years to four years in the budget for the financial year 2025-26.

Sitharaman in her budget speech also proposed exemption of TCS (tax collected at source) for funds sent for education purposes in cases where education loan is taken from certain specified financial institutions.

He said that 33,000 taxpayers have benefited from the Vivaad se Vishwas 2.0 scheme brought to settle direct tax disputes.

Along with this, the budget also announced doubling the tax deduction limit on interest income to senior citizens to one lakh rupees.

No tax on income of 12 lakhs

Finance Minister Nirmala Sitharaman, as expected, gave a big relief to the middle class by announcing a complete tax exemption on annual income up to Rs 12 lakh. This exemption has been given in the new income tax system. With a standard deduction of Rs 75,000, employed people will now not have to pay any tax on annual income up to Rs 12.75 lakh. The Finance Minister said that with tax exemption, middle class people will have more money for consumption. Along with this, investment and savings will also increase. Along with this, the Finance Minister also proposed changes in different tax slabs.

Under this, now there will be no tax on annual income of Rs 4 lakh. There will be a tax of 5% on Rs 4 to 8 lakh, 10% on Rs 8 to 12 lakh, 15% on Rs 12 lakh to 16 lakh, 20% on Rs 16 to 20 lakh, 25% on Rs 20 lakh to 24 lakh and 30% on annual income above Rs 24 lakh. Direct tax exemption will put a burden of Rs 1 lakh crore on the government treasury.

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