Lok Sabha Question No. 3742 (UNSTARRED), answered on 2025-03-24
Subject: Encouragement for Voluntary Compliance by Taxpayers
Ministry: FINANCE
Asked by: Shri Chamala Kiran Kumar Reddy, Shri Eatala Rajender, Smt. D K Aruna

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 3742

TO BE ANSWERED ON MONDAY, MARCH 24, 2025/ CHAITRA 3, 1947 (SAKA)

## ENCOURAGEMENT FOR VOLUNTARY COMPLIANCE BY TAXPAYERS

## 3742. SHRI CHAMALA KIRAN KUMAR REDDY:

SHRI EATALA RAJENDER:

SMT. D K ARUNA:

Will the Minister of FINANCE be pleased to state:

- (a)    whether the Government is encouraging voluntary compliance and taking steps towards 'Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayas' and also brought in updated return facility for voluntary compliance  by  taxpayers  who  had  omitted  to  report  their  correct  income  and  the  Government  trust  in taxpayers was proved right;
- (b)   if so, the details of the number of taxpayers voluntarily updated their income by paying additional tax and propose to extend the time-limit from the current limit of two years, to four years to file updated returns for any assessment year; and
- (c)    if so, the details thereof and the present status thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a)  Yes, vide Finance Act, 2022, Government has introduced the provision of updated return by inserting the sub-section (8A) in the section 139 of the Income-tax Act,1961 so as to encourage voluntary compliance and taking forward the concept of Sabka Sath, Sabka Vikas, Sabka Vishwas and Sabka Prayas.

Further tax-payers have also shown the faith in government's initiative where large number of tax-payers have filed the updated returns who had omitted to report their correct income.

- (b)  The total number of updated e-Returns submitted for AY 2021-22 ( upto 31-Mar-2024 ), and AY 202223, 2023-24 and 2024-25 ( upto 28-Feb-2025 ) is as following:

| Summary on updated e-Returns   | Summary on updated e-Returns   | Total number of updated e- Returns   | Total tax paid u/s 140B (Rs. Crore)   |
|--------------------------------|--------------------------------|--------------------------------------|---------------------------------------|
| S#                             | AY                             | UNIQ_PANS                            | TAX_140B_AMT                          |
| 1                              | AY 2021-22                     | 17,24,498                            | 1,799.76                              |
| 2                              | AY 2022-23                     | 40,07,494                            | 3,940.14                              |
| 3                              | AY 2023-24                     | 29,79,444                            | 2,946.90                              |
| 4                              | AY 2024-25                     | 4,64,817                             | 431.20                                |

Note : The latest updated e-Returns of AY 2021-22 (upto 31-Mar-2024) and AY 2022-23 to AY 2024-25 (upto 28-Feb-2025) have been taken into consideration.

- (c)   Vide Finance Bill, 2025, Government has proposed to amend the section 139(8A) of the  Income-tax Act, 1961 so that tax-payers may file updated returns up to 4 years from the relevant assessment year by paying additional income-tax. Earlier, tax-payers could file the updated returns upto 2 years from the relevant assessment year.

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