ITR-1 & ITR-2 Filing Deadline Set for 31 July; Non-Audit Business/ Trust Returns Due by 31 August: FM [Read Finance Bill 2026]

The Union Budget for the Financial Year 2026-27 was presented by Finance Minister Nirmala Sitharaman in the Lok Sabha today (Sunday, 1 February 2026). This is her 9th consecutive budget.

The Finance Minister has announced revised timelines for filing Income Tax Returns, providing a structured due date framework for different taxpayer categories.

As per the announcement, taxpayers filing ITR-1 and ITR-2 will be required to submit their returns by 31 July, while non-audit cases and trusts will be allowed time up to 31 August to complete their filings.

ITR-1 and ITR-2 are used by individual taxpayers not requiring audit, including salaried individuals, pensioners, and those having income from house property and other specified sources.

The government is granting time to the businesses and trusts, which will help the professionals to not to burdenize.

The minister also proposed to reduce the TCS for the education and medical purposes under LRS from 5% to 2%. Also, it has announced that the revising of the income tax return will be allowed with a nominal fee from December 31st to March 31st.

The budget also proposed that the small Taxpayers can obtain Lower or Nil Deduction Certificates without Approaching the Assessing Officer. The minister also said that the new simplified rules and forms under the new income tax act, 2025 will be out soon.

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