Clarification on Revised Income Tax Return Due Date

Contrary to potential misunderstandings, the Budget 2026 announcement of an extended deadline for filing revised Income Tax Returns (ITR) to March 31, 2026, is not applicable for the Assessment Year (AY) 2025-26. This change is effective from Assessment Year 2026-27 onwards. Taxpayers must understand this distinction to avoid missing crucial deadlines for the current assessment cycle.

New 12-Month Window for Revised ITR

The new provision, effective from AY 2026-27, extends the time limit for filing revised returns to 12 months from nine months from the end of the tax year. This extended window provides taxpayers with more flexibility to correct errors, report previously missed income, or adjust for changes in tax laws after their original filing. However, it is crucial to remember this benefit is prospective.

Penalties for Late Revised Filings

Even with the extended window for AY 2026-27, filing a revised return after the initial nine-month period will still attract a fee. This fee is ₹1,000 if the total taxable income does not exceed ₹5 lakh, and ₹5,000 in all other cases. Taxpayers are encouraged to file accurate returns promptly to minimize potential penalties.