In Budget 2026, the government has proposed important changes in the due dates for filing Income Tax Returns (ITR)and the time limit for filing revised returns. These amendments aim to simplify compliance and provide additional time to certain taxpayers, especially those engaged in business or profession whose accounts are not required to be audited.
These changes are proposed under Section 263 of the Income Tax Act, 2025, which deals with the comprehensive framework for filing Income Tax Returns.
Framework of Return Filing under Income Tax Act, 2025
Section 263 of the Income Tax Act, 2025 lays down the complete framework for filing Income Tax Returns including:
- Persons required to file ITR
- Due dates for filing returns
- Types of returns that can be filed
The section covers different types of returns such as:
- Original Return
- Belated Return
- Revised Return
- Updated Return
The objective of this framework is to ensure that taxpayers file their income details within prescribed timelines while allowing corrections where necessary.
Rationalisation of ITR Due Dates
To provide more time for taxpayers to prepare their books of accounts and comply with tax requirements, the government has proposed rationalisation of due dates for filing ITR.
The proposal mainly benefits:
- Businesses whose accounts do not require audit
- Partners of such firms
- Trusts not requiring audit
Earlier, many of these taxpayers had the same due date as salaried individuals, which sometimes created practical difficulties in finalising books of accounts.
Therefore, the government has proposed extending the due date for such taxpayers.
New Proposed ITR Due Dates
The revised due dates proposed in Budget 2026 are as follows:
| Category of Taxpayer | Conditions | Due Date |
|---|---|---|
| Assessee including partner of firm or spouse (where section 172 applies) | Shipping business cases | 30 November |
| Companies and taxpayers requiring audit | Where audit is required under Income Tax Act or other law | 31 October |
| Business or professional taxpayers whose accounts are not required to be audited | Includes partner of such firms or spouse of partner | 31 August |
| Other taxpayers (mainly salaried individuals filing ITR-1 or ITR-2) | No audit requirement | 31 July |
Key Change Introduced in Budget 2026
The most important change is:
Due Date Extended for Non-Audit Business Cases
Taxpayers having income from business or profession where audit is not required will now get one extra month to file their return.
Earlier due date:
31 July
New proposed due date:
31 August
This change will also apply to:
- Partners of firms where audit is not required
- Spouses of such partners (if provisions of section 10 apply)
This additional time will help such taxpayers finalise accounts properly before filing returns.
No Change for Salaried Individuals
For most salaried individuals filing ITR-1 or ITR-2, there is no change in the due date.
The due date will continue to remain:
31 July
Therefore, the extension mainly benefits small businesses and professionals.
Extension of Time Limit for Filing Revised Return
Another major change proposed in Budget 2026 relates to the time limit for filing revised returns.
Under Section 263(5) of the Income Tax Act, 2025, a taxpayer can revise the return if any:
- Omission
- Wrong statement
- Error in income
- Error in deductions
- Error in exemptions
- Incorrect loss claim
is discovered after filing the original return.
Existing Rule for Revised Return
Currently, a revised return can be filed:
Within 9 months from the end of the relevant tax year
or
before completion of assessment
whichever is earlier.
However, this timeline often coincided with the last date for filing a belated return, leaving little opportunity to revise returns filed late.
New Proposed Time Limit for Revised Return
To address this issue, Budget 2026 proposes:
Revised Return Filing Time Extended
Old time limit:
9 months from the end of tax year
New time limit:
12 months from the end of tax year
This change will give taxpayers more flexibility to correct errors.
Benefit of Extending Revised Return Timeline
The extension will provide several benefits:
1. More Time to Correct Errors
Taxpayers will have more time to rectify mistakes related to income, deductions, or exemptions.
2. Relief for Belated Return Filers
Previously, taxpayers filing returns at the end of the belated return timeline had no opportunity to revise the return.
Now they will get additional time.
3. Improved Compliance
The extension will encourage voluntary correction of errors and improve overall tax compliance.
Fee for Late Revised Returns
The government has also proposed a fee for revised returns filed after nine months.
- Revised returns filed after 9 months but before 12 months may attract a prescribed fee.
Under the Income Tax Act 1961, this fee is proposed to be introduced under Section 234I.
Applicability of the Amendments
The changes will be implemented as follows:
Under Income Tax Act 2025
Effective from:
1 April 2026
Applicable for:
Tax Year 2026-27 and subsequent years
Under Income Tax Act 1961
To align both laws, similar amendments are proposed in Section 139 of the Income Tax Act 1961.
Effective from:
1 March 2026
Applicable for:
Assessment Year 2026-27 (Previous Year 2025-26)
Summary of Key Changes
Budget 2026 introduces two major changes in return filing timelines:
1. ITR Due Date Extended
For non-audit business taxpayers:
31 July → 31 August
2. Revised Return Timeline Extended
Revised return filing time:
9 months → 12 months
These changes aim to provide greater flexibility and reduce compliance burden for taxpayers.
The Budget 2026 proposal to rationalise ITR due dates is a significant step toward simplifying tax compliance. By extending the due date for non-audit business taxpayers to 31 August and increasing the revised return filing period to 12 months, the government aims to provide taxpayers with sufficient time to prepare accurate financial records and correct errors in filed returns.
These reforms will particularly benefit small businesses, professionals, and partners of firms, ensuring smoother compliance and reducing grievances related to return filing deadlines.
Disclaimer
The contents of this article are for general informational purposes only and are intended to provide quick access to tax rate information. Readers are advised to verify the provisions with the Income-tax Act, relevant rules, notifications, and official government sources before making financial decisions.
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