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Extension of Time Limit for Filing Updated Return (Section 139(8A)) in Budget 2025

Current Rules (Before Amendment):

Updated return can be filed within 24 months from the end of the relevant assessment year.
Additional tax payable:
- Within 12 months – 25% of total tax & interest.
- After 12 months but within 24 months – 50% of total tax & interest.

Proposed Changes (Effective from April 1, 2025):

Time limit extended from 24 months to 48 months.
Revised Additional Tax Rates Payable:
- Within 12 months – 25% of total tax & interest.
- After 12 months but within 24 months – 50% of total tax & interest.
- After 24 months but within 36 months – 60% of total tax & interest.
- After 36 months but within 48 months – 70% of total tax & interest.

Restriction on Filing Updated Return:

If a show-cause notice under Section 148A is issued after 36 months, the updated return cannot be filed.
However, if the final order under Section 148A(3) determines that no notice under Section 148 is required, the updated return can be filed within 48 months.

This amendment aims to encourage voluntary compliance by allowing more time for taxpayers to file updated returns while increasing the additional tax over time.

Presentation in Tabular Form for easy understanding

Time Period for Filing Updated Return	Current Additional Tax Payable	Proposed Additional Tax Payable (Effective from April 1, 2025)
Within 12 months	25% of total tax and interest	25% of total tax and interest
After 12 months but within 24 months	50% of total tax and interest	50% of total tax and interest
After 24 months but within 36 months	Not allowed	60% of total tax and interest
After 36 months but within 48 months	Not allowed	70% of total tax and interest

Conditions for Filing Updated Return

Condition	Current Provision	Proposed Provision
Notice Under Section 148A Issued	No specific restriction.	Updated return cannot be filed after 36 months from the end of the relevant assessment year.
Subsequent Order Under Section 148A(3)	No specific provision.	If an order under Section 148A(3) determines that no further action under Section 148 is needed, the updated return can be filed within 48 months.