Budget 2022: Taxpayers can file updated return within 2 years from relevant AY, announces Sitharaman

Budget 2022-23: Union finance minister Nirmala Sitharaman said that the time period for filing an updated return has been extended to provide taxpayers with an opportunity to correct the filing.

Union finance minister Nirmala Sitharaman on Tuesday announced that the taxpayers will now be allowed to file an updated return within two years from the relevant assessment year. Presenting the Union budget for the fiscal year 2022-2023, Sitharaman said that the time period for filing an updated return has been extended to provide taxpayers with an opportunity to correct the filing. 

Union Budget 2022: The central government has proposed to reduce the alternate minimum tax for cooperatives from 18.5% to 15%.

The government will also provide a one-time window to correct omissions in ITRs filed.

"[S]ome taxpayers may realize that they have committed omissions or mistakes incorrectly estimating their income for tax payment. To provide an opportunity to correct such errors, I am proposing a new provision permitting taxpayers to file an Updated Return on payment of additional tax," Sitharaman said. 

"This updated return can be filed within two years from the end of the relevant assessment year."

Union finance minister Nirmala Sitharaman presents Budget 2022: Track Live Updates

The central government has proposed to reduce the minimum alternative tax for cooperatives from 18.5% to 15%. It has also proposed to reduce co-operative surcharge from 12% to 7%.

The tax deduction limit on contribution in National Pension Scheme by state government employees will be hiked from 10% to 14%, the minister announced. She said that the increase has been proposed to help the social security benefits of state government employees to provide equal treatment at par with the central government employees.

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