In a taxpayer-friendly announcement, the government on Sunday proposed extending the deadline for filing revised income tax returns (ITRs) to March 31, instead of the earlier cut-off of December 31, Finance Minister Nirmala Sitharaman said in her Budget 2026–27 speech.
She clarified that individuals filing ITR-1 and ITR-2 will continue to have time until July 31, while non-audit business cases and trusts can file their returns up to August 31. The new Income Tax Act, 2025, will come into force from April 1, 2026.
The extended timeline will allow taxpayers more time to correct errors, report missed income and ensure accurate compliance without the pressure of rushing to meet earlier deadlines.
The move is expected to benefit salaried employees, small taxpayers and professionals who often receive updated financial details or face reconciliation issues after filing their original returns. By permitting revisions until the end of the financial year, the government aims to reduce disputes, encourage voluntary compliance and minimise litigation.