Why Budget 2026’s ITR Date Changes Are a Game-Changer: How Staggered Filing and Extended Revisions Impact You

NEW DELHI – In a move aimed at reducing “compliance fatigue” and easing the pressure on India’s digital tax infrastructure, Finance Minister Nirmala Sitharaman today announced a significant overhaul of the Income Tax Return (ITR) filing calendar. As part of the new Income Tax Act, 2025, which takes effect on April 1, 2026, the government has introduced staggered deadlines and a much-needed extension for correcting errors.

The most notable shift is the extension of the Revised Return deadline by three full months, giving taxpayers a “safety net” until the very end of the financial year.

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The New ITR Calendar: Staggered Deadlines for FY 2026-27

To avoid the last-minute server crashes and “portal congestion” that often plague the final days of July, the government has proposed a tiered filing schedule.

Taxpayer Category	ITR Forms	New Filing Deadline	Status
Salaried Individuals	ITR-1, ITR-2	July 31	No Change
Non-Audit Businesses/Trusts	ITR-3, ITR-4, etc.	August 31	Extended by 1 Month
Audit-Required Businesses	All	October 31	No Change
Transfer Pricing Cases	All	November 30	No Change

The Strategy: By allowing non-audit businesses and trusts an extra 30 days, the government hopes to spread out the volume of data hitting the IT portal, ensuring a smoother experience for salaried employees who usually file in July.

The Big Win: Revised Return Deadline Extended to March 31

Perhaps the most “taxpayer-friendly” reform in Budget 2026 is the change to Section 139(5). Previously, taxpayers only had until December 31 to correct mistakes in their original return.

• The New Date: You can now file a Revised Return until March 31 of the relevant assessment year.
• The “Nominal Fee”: This extension comes with a small catch. If you revise your return after December 31, a nominal fee will apply:
  • ₹1,000: For taxpayers with total income up to ₹5 lakh.
  • ₹5,000: For taxpayers with total income exceeding ₹5 lakh.

How “Belated Returns” and “Updated Returns” Change

The Finance Minister also clarified the path for those who miss the original deadlines entirely:

1. Belated Returns: If you miss your July/August deadline, you can still file a belated return until December 31, subject to the existing late filing fees (under Section 234F).
2. Updated Returns (ITR-U): For those who discover errors much later, the ITR-U window remains open for up to 48 months from the end of the assessment year, though this involves a higher tax penalty (25% to 50% additional tax).
3. Post-Reassessment Filing: In a historic first, taxpayers can now update their returns even after reassessment proceedings have started, provided they pay an additional 10% tax over their applicable rate.

Expert Verdict: A “Practical” Compliance Shift

“Staggering the deadlines is a pragmatic move that acknowledges the reality of India’s growing tax base. However, the real relief is the March 31 revision window. It allows taxpayers to disclose missed income or correct errors voluntarily rather than waiting for an automated notice from the department,” says a tax partner at a ‘Big Four’ firm.