Litigation Delays excluded from Limitation Periods for passing Income Tax Orders: FM proposes in Budget 2025

The Union Budget 2025 proposed excluding litigation delays from the limitation period for passing income tax orders. If a case is delayed due to legal proceedings or litigation, this time will not be counted towards the limitation period for tax orders. This provision aims to give taxpayers additional time to comply with tax orders affected by ongoing legal disputes. By excluding such delays, the government intends to ensure that taxpayers are not unfairly penalized for events beyond their control. This change is expected to benefit businesses and individuals who face delays due to prolonged litigation, providing them with more time to resolve outstanding tax matters without the threat of penalties.