TNI Bureau: Union Finance Minister Nirmala Sitharaman on Sunday announced key changes to income-tax return (ITR) filing timelines in her Budget 2026 speech, providing major relief to taxpayers.
She clarified that the deadline for filing ITR-1 and ITR-2 will remain July 31 for salaried individuals and other non-business taxpayers. However, the time limit for filing revised ITRs has been extended from December 31 to March 31, subject to payment of a nominal fee.
The extension will allow taxpayers to correct genuine errors or omissions without facing harsher penalties. As per Budget documents, a fee of ₹5,000 will apply for filing after December 31, while a reduced penalty of ₹1,000 will be levied if income is below ₹5 lakh.
The finance minister also announced that the ITR filing deadline for certain businesses and trusts in non-audit cases will be extended to August 31, easing compliance for small businesses.
Revised ITR Filing Timelines:
July 31: Individual taxpayers filing ITR-1 and ITR-2
August 31: Non-audit taxpayers, including businesses and trusts
March 31: Revised ITR filing (with nominal fee)
Additionally, Sitharaman announced a one-time six-month foreign asset disclosure window for small taxpayers, including students, young professionals, tech workers and relocated NRIs, allowing them to voluntarily declare foreign assets without penal consequences.
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