ITR Update, No Prosecution & More

In a major relief for taxpayers, Finance Minister Nirmala Sitharaman has announced key changes to simplify tax compliance. Taxpayers can now update their returns even after reassessment proceedings begin—by paying an additional 10% tax. A special one-time window also allows disclosure of undisclosed foreign assets without prosecution, benefiting NRIs, students, and professionals. Further, a single-window system for Form 15G/15H will ease TDS hassles for senior citizens. The government has also simplified passenger rules on personal imports, gifts, and valuables to reduce airport disputes. These reforms aim to make tax filing smoother, reduce litigation, and offer significant relief to the middle class and small taxpayers.