Taxpayers will now be given more time to update their income tax returns (ITR), announced Union Finance Minister Nirmala Sitharaman during the Union Budget 2022 today.
She said, "I am proposing to file an updated return on payment of additional tax for two years from the end of the relevant assessment years.” This means that individual taxpayers will get more time to file their updated ITR in case he/she missed declaring the income at the time of filing income tax return.
Currently, taxpayers get time till December 31 (unless extended by the government) to update their ITR which provides a clear picture of the income earned by them during the financial year. This new law will give taxpayers two years from the end of the relevant assessment year to file their correct ITR.
Sitharaman further announced a 30 per cent tax on proceeds of virtual/digital assets.
Other announcements related to income tax changes include tax deduction limit for State government employees contribution to NPS has been raised to 14 per cent from 10 per cent.
Further, 1 per cent TDS will be levied on payments made on the transfer of digital assets.
Sitharaman also announced that long term capital gains to be subject to surcharge only at 15 per cent for all assets as against graded surcharge. "Currently, this is avaiable only for listed shares and units of mutual funds," she said.