Union Budget 2026: Deadline for Revised ITR Filing Extended to March 31

In a move aimed at easing compliance for taxpayers, Finance Minister Nirmala Sitharaman on Sunday announced an extension of the deadline for filing revised income-tax returns under the Union Budget 2026–27. The revised cut-off date will now be 31 March of the relevant financial year, replacing the earlier deadline of 31 December.

The proposal, which will be incorporated into the forthcoming Income Tax Act, 2025, is designed to encourage voluntary disclosures and minimise unnecessary litigation arising from inadvertent errors.

New Income Tax Law from April 2026

Speaking in Parliament during her Budget address, Sitharaman said the new income tax legislation would come into effect from 1 April 2026. She added that the accompanying rules and updated return forms would be notified shortly to facilitate a smooth transition to the new regime.

Nominal Fee and Staggered Filing Schedule

Announcing the reform, the Finance Minister said taxpayers would be allowed to revise their returns until 31 March on payment of a nominal fee. She also outlined a staggered filing calendar to better manage the return-filing process.

Under the proposed schedule, individuals filing simpler returns, ITR-1 and ITR-2, will continue to have a due date of 31 July. Non-audit business cases and trusts, however, will be granted additional time, with their filing deadline extended to 31 August.

More Flexibility for Error Correction

The revised framework marks a shift from the current system, which offers a relatively narrow window to correct mistakes or disclose omitted income after the original filing deadline. By extending the revision period to the end of the financial year, the government aims to provide taxpayers with a more practical and flexible compliance window.

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Aim to Streamline Tax Administration

Officials said the staggered deadlines are expected to reduce congestion during peak filing periods, benefiting both taxpayers and the tax administration. The broader overhaul under the Income Tax Act, 2025, is intended to simplify legal provisions, modernise tax processes, and strengthen a digital, rule-driven compliance framework.

The government has indicated that detailed rules and revised ITR forms will be issued in the coming weeks.

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