Income Tax Changes in Budget 2026: ITR Revision Deadline Changed

Union Budget 2026: Finance Minister Nirmala Sitharaman announced significant changes to the ITR filing timeline to reduce system congestion and make the process more flexible for taxpayers.

While the core deadline for most individuals (ITR-1 and ITR-2) remains July 31, there is a major new extension for revised and belated returns.

New ITR Filing Timeline (FY 2025-26):

Individuals (ITR-1 & ITR-2)July 31, 2026 (No change)

Non-Audit Business/TrustsAugust 31, 2026 (New staggered date)

Revised/Belated ReturnsMarch 31, 2027 (Extended from Dec 31)

Revised Returns Extended: In a massive relief, the deadline to revise your ITR or file a belated return has been pushed from December 31 to March 31. However, filing after December 31 will now attract a nominal fee.

Staggered Deadlines: To prevent the income tax portal from crashing on July 31, the FM has introduced staggered deadlines. Non-audit business cases and trusts now have an extra month (until August 31) to file.

Date extension alignment helps taxpayers who need to claim double taxation relief based on overseas tax returns, which are often filed by December in other countries. For those making overseas payments, the TCS (Tax Collected at Source) for education and medical purposes has been slashed from 5% to 2%, effective immediately.

Even though you can now file a belated return until March, it is still best to hit the July 31 deadline. Filing late often means you cannot carry forward losses and you might have to pay interest on any unpaid tax.

Also Read: New Income Tax Act will start from April 1, 2026: Check Tax slab