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Informist, Sunday, Feb. 1, 2026

 

--BUDGET: To extend time to revise returns to Mar 31 with small fee 

--BUDGET: Moot to stagger timeline for filing tax returns 

--BUDGET: New income tax act forms to be notified shortly 

--BUDGET: New Income Tax Act to be implemented Apr 1

 

NEW DELHI - In a relief to taxpayers who miss the initial deadline of Dec. 31, the Union Budget for 2026-27 (Apr-Mar) Sunday has extended the time available for revising income tax returns to Mar. 31, with the payment of a nominal fee. Going ahead, this revised return can be of original return or belated return, Finance Minister Nirmala Sitharaman said while presenting the Budget in the Lok Sabha.

 

A nominal fee of INR 1,000 or INR 5,000 is to be paid where the revision of original or belated return is made after Dec. 31, depending upon whether the income is up to or more than INR 500,000. 

 

Earlier, the revised income tax return could only be filed up to Dec. 31 following the tax year. Further, the income tax return filing period earlier extended up to Oct. 31 for persons engaged in international transactions under section 92E under the Income Tax Act, 1961.

 

The government has also staggered the timeline for filing of tax returns. Individuals with ITR 1 and ITR 2 returns will continue to file till Jul. 31 and non-audit business cases or trusts are proposed to be allowed time till Aug. 31. 

 

In July, the government had announced a comprehensive review of the Income Tax Act, 1961. This was completed in a record time and the Income Tax Act, 2025 will come into effect from Apr. 1, said Sitharaman. The simplified Income Tax Rules and forms will be notified shortly, she said, adding that it will give adequate time to taxpayers to acquaint themselves with its requirements. The forms have been redesigned such that ordinary citizens can comply without difficulty, she said.

 

Among other steps, the government said that tax deducted at source on the sale of immovable property by a non-resident is proposed to be deducted and deposited through resident buyer's permanent account number based challan instead of requiring tax deduction and collection account number. 

 

"For the ease of taxpayers holding securities in multiple companies, I propose to enable depositories to accept Form 15G or Form 15H from the investor and provide it directly to various relevant companies," said the government. Form 15G and Form 15H are tax exemption declaration forms filed by individuals to save tax deducted at source on incomes like bank interest, dividends, rent, and pension if the total income is below the basic exemption limit or a person's total tax liability for a year is nil. Form 15G is filled by any person who is below 60 years and Form 15H is filled by resident senior citizens aged 60 years or more.  End 

 

Reported by Surya Tripathi

Edited by Vandana Hingorani

 

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