Good news for taxpayers: FM Sitharaman extends deadline to file revised ITR, check details
Good news for taxpayers: FM Sitharaman extends deadline to file revised ITR, check details
In good news for taxpayers, the deadline to file a revised income tax return (ITR) has been extended. Taxpayers can now file revised returns until March 31 of the relevant assessment year, instead of the earlier deadline of December 31.
The government also proposed a reduction in the TCS rate for pursuing education and medical education under the liberalised remittance scheme from 5 per cent to 2 per cent.
Tax Collected at Source (TCS) rate on sale of overseas tour packages was announced to be cut to 2 per cent from 5 per cent. The rate was 20 per cent earlier.
She also proposed a rule-based automated process for small taxpayers in the FY27 Budget.
In her Budget speech, Sitharaman announced a proposal to exempt awards given by the Motor Accident Claims Tribunal from income tax.
Presently revised return can be filed up to December 31 following the tax year. Return filing period extends up to October 31 for persons engaged in international transactions under section 92E.
Nominal fees
This revised return can be an original return or a belated return. A nominal fee of Rs 1,000 or 5,000 is also proposed, where the revision of original or belated return is made after December 31, depending upon whether the income is up to or more than Rs 5 lakh
Change in due date of filing Income-tax Return for non-auditable business and trusts
It is proposed to provide a staggered timeline for the filing of tax returns due on July 31. Individuals filing ITR 1 and ITR 2 shall continue to file tax returns by July 31, and for non-audit business cases or trusts, August 31 shall be the due date.
Also, Sitharaman proposed to exempt Minimum Alternate Tax (MAT) for non-residents who pay tax on a presumptive basis. In her Budget speech, she said the threshold for availing safe harbour for IT services is being enhanced from Rs 300 crore to Rs 2,000 crore.
Sitharaman added that the tax collected at the source rate on liquor, scrap, and minerals has been rationalised to 2 per cent.