Missed the ITR deadline? Here's how belated filers may still get time to revise returns after the Budget 2026 announcement

At present, the time limits for filing belated returns and revised returns coincide, both being nine months from the end of the tax year

• Tax return revision deadline extended to March 31 from December 31.
• Revised tax return filing extended to 12 months post-tax year, effective 2026
• Fee for revised returns filed 9+ months after tax year's end

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Finance Minister Nirmala Sitharaman has announced a proposal to widen the window for revising income tax returns, allowing taxpayers extra time to fix mistakes. Speaking during the Union Budget presentation, she said returns could now be revised until March 31, instead of the earlier December 31 cut-off, with a small fee, easing the pressure on those who miss the initial deadline.

Section 263 of the Income-tax Act, 2025 (‘ITA 2025’) [corresponding to section 139 of the Income-tax Act, 1961 (‘ITA 1961’)] provides for a statutory framework prescribing the classes of persons required to file returns, the applicable due dates, and the various categories of returns that may be furnished, including original returns, belated returns, revised returns, and updated returns.

Section 263(5) of the ITA 2025 (corresponding to section 139(5) of the ITA 1961) provides for the filing of a revised return of income. It permits a person who has furnished a return under section 263(1) or section 263(4) – Belated Return of the ITA 2025 (corresponding to sections 139(1) and 139(4) of the ITA ) to revise such return upon discovery of any omission or wrong statement in the original or belated return.

Under the existing provisions, such revised return is required to be furnished within nine months from the end of the relevant tax year, or before completion of assessment, whichever is earlier. The scope of section 263(5) (corresponding to section 139(5) of the ITA 1961) enables taxpayers to file a revised return in order to rectify omissions or incorrect statements relating to income, deductions, exemptions, losses, or other particulars disclosed in the return of income.

CA (Dr.) Suresh Surana said, "It is proposed to extend the prescribed time limit for filing a revised return from the existing nine months to twelve months from the end of the relevant tax year."

"At present, the time limits for filing belated returns and revised returns coincide, both being nine months from the end of the tax year. As a result, taxpayers filing a belated return towards the end of the permitted period do not have any effective opportunity to revise such return. The proposed extension seeks to address this practical constraint by allowing an additional window only for revised returns and not for belated returns," added Surana.

Notably, a person filing a belated ITR pays a maximum penalty of Rs 5,000 (if income exceeds Rs 5 lakh), and if they file a revised return after the end of the year, they must pay an additional Rs 5,000. While they can revise their ITR now, they may also incur a fee for the revision.

Accordingly, section 263(5) of the ITA 2025 is proposed to be amended to increase the time limit for filing a revised return to twelve months from the end of the relevant tax year. Further, it is proposed to levy a fee under section 428(b) of the ITA 2025 for revised returns filed more than nine months after the end of the relevant tax year.

These amendments will take effect from 1 April 2026 and shall apply in relation to tax year 2026–27 and subsequent tax years.