For millions of taxpayers, Budget 2026-27 has changed the requirements for filing income tax returns (ITRs). While the basic structure remains the same with no change in income tax rate and slabs, the government has revised the ITR timelines. 

In her Budget speech, Finance Minister Nirmala Sitharaman announced two major compliance-friendly measures which are staggered ITR filing deadlines and additional time to revise returns. 

Deadline extended to August 31 for non-audit business cases and trusts

The deadline for filing returns for non-audit business cases and trusts has been extended until 31 August.

The Budget 2026 document said, “In this regard, assessee having income from profits and gains of business or profession whose accounts are not required to be audited under this Act or under any other law in force and partner of a firm whose accounts are not required to be audited under this Act or under any other law in force or the spouse of such partner (if section 10 applies to such spouse), their due date for filing of return is proposed to be extended from July 31 to August 31.”

The government has extended the deadline to August 31 to give taxpayers more time for compliance, ease last-minute pressure and ensure smoother filing under the new Income Tax framework.

ITR-1 and ITR-2 deadline remains July 31

Individuals filing ITR-1 and ITR-2 will continue to file till 31st July. For salaried employees, pensioners, individuals earning income from house property or capital gains and small investors with dividend income who file ITR-1 or ITR-2, the due date continues to be July 31. 

The Budget 2026 document said, “Individuals who file ITR-1 & ITR-2 forms, their due date for filing return of income shall remain July 31.”

Deadline extended to 31 March for filing revised ITR

The government has proposed extending the deadline for filing revised income tax returns to March 31 with a nominal fee. It replaces the earlier deadline of December 31. Announcing the extension, the finance minister said, “I propose to extend the time available for revising returns from 31 December to up to 31 March with the payment of a nominal fee.”

When will these changes apply?

The staggered deadlines will come into force from April 1, 2026. The new rules will apply to tax year 2026-27 and will be reflected in the existing Income-tax Act, 1961 for assessment year 2026-27.