The government has proposed extending the deadline for filing revised income tax returns (ITRs) to March 31 with a nominal fee. This change will replace the earlier deadline of December 31. Finance Minister Nirmala Sitharaman announced the proposal during her Budget Speech 2026–27.

She said taxpayers filing ITR-1 and ITR-2 will continue to file their returns by 31 July. The government will allow non-audit business cases and trusts to file returns until 31 August. The Income Tax Act, 2025 will take effect from 1 April 2026.

More Time to Fix Mistakes

The extended timeline will give taxpayers more time to correct errors. It will help them report missed income. It will also allow better compliance without rushing before deadlines.

The move will benefit salaried employees, small taxpayers, and professionals. Many of them receive revised financial details after filing returns. Others face reconciliation issues later in the year. The government aims to reduce disputes, encourage voluntary compliance, and cut down litigation by allowing revisions until the end of the financial year.

Simpler Returns Keep July Deadline

Taxpayers filing simpler returns, such as ITR-1 and ITR-2, will continue to follow the 31 July deadline. These forms mainly apply to salaried individuals, pensioners, and people with limited income sources.

Officials said retaining the July deadline will maintain continuity. It will also avoid confusion among a large group of taxpayers who already follow this schedule.

Extra Time for Business and Trust Filings

The government has proposed a 31 August deadline for non-audit business cases and trusts. These returns usually involve complex details and extensive documentation.

Officials said staggered deadlines will reduce congestion on the income tax portal. They will ease pressure during peak filing season. They will also help tax authorities process returns more smoothly.