Revised ITR Filing to Be Allowed from Dec 31 to March 31 with Nominal Fee: FM in Budget 2026
The measure is part of a broader compliance simplification drive proposed under the new Income Tax Act, 2025.
The Union Budget for the financial year 2026-27 was presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on Sunday, February 1, 2026. Providing relief to taxpayers and professionals alike, Finance Minister Nirmala Sitharaman on Sunday announced that taxpayers will be permitted to file revised income tax returns with a nominal fee from December 31 to March 31, as part...
The Union Budget for the financial year 2026-27 was presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on Sunday, February 1, 2026.
Providing relief to taxpayers and professionals alike, Finance Minister Nirmala Sitharaman on Sunday announced that taxpayers will be permitted to file revised income tax returns with a nominal fee from December 31 to March 31, as part of the government’s proposed overhaul of the income tax compliance framework.
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As per the Budget proposals, individuals filing ITR-1 and ITR-2 will continue to file their original returns up to July 31, while non-audit business cases and trusts will be allowed to file returns till August 31.
Taxpayers opting to revise their returns after these deadlines will be able to do so between December 31 and March 31 upon the payment of a nominal fee.
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The Finance Minister had earlier announced a comprehensive review of the Income Tax Act, 1961, in July 2024 which was completed in record time. The Finance Minister stated that the revised framework focuses on simplifying tax laws and designing forms that enable ordinary citizens to comply without procedural difficulty.
In another significant reform, taxpayers will be allowed to update returns even after reassessment proceedings, subject to payment of an additional 10 percent tax over and above the applicable rate for the relevant assessment year. In such cases, the Assessing Officer will rely only on the updated return.
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The revised ITR filing window, along with other compliance-oriented reforms is a marker of the government adopting a shift towards a more facilitative and trust-based tax administration framework under the proposed new Income Tax Act.
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