New Delhi, Feb. 1 -- In case you forgot to report some income while filing tax returns anytime in the past four fiscal years, Budget 2025 has good news. The timeline to file an updated income tax return has been increased to four years from two years starting April 2025.

Of course, an updated ITR can only be filed to report a higher tax liability, unlike a revised return that can modify your ITR to include deductions and reduce tax liability.

Introduced in April 2022, this provision in the Income Tax Act allows taxpayers to report income by paying additional tax on it if they missed filing it before. Using this, they can also file their ITR if they had missed filing it earlier.

This "trust in taxpayers" resulted in nearly 9 million peo...