Budget Highlights: Extended Tax Filing & Benefits for Startups

Finance Minister Nirmala Sitharaman announced an extension for filing updated tax returns from two to four years. The budget proposes TCS exemption for certain education remittances and increases tax deductions for senior citizens. It includes changes to TDS limits on rent and extends startup tax benefits.

In a significant announcement, Finance Minister Nirmala Sitharaman has revealed the extension of the time limit for filing updated returns for any assessment year from two years to four years.

Delivering the 14th consecutive Budget under Prime Minister Narendra Modi's tenure, Sitharaman also introduced an exemption for tax collected at source on remittances specifically for education purposes, applicable when education loans are procured from specified financial institutions.

Further highlights include the settlement of direct tax disputes under the Vivad Se Vishwas 2.0 scheme by 33,000 taxpayers, an increased tax deduction limit on interest income for senior citizens to Rs 1 lakh, a proposal to raise the TDS limit on rent to Rs 6 lakh, and an extension of the incorporation period by five years for startups to enjoy tax benefits.

(With inputs from agencies.)