For millions of taxpayers, Budget 2026-27 has quietly changed how and when income tax returns (ITRs) must be filed. While there was no change in tax slabs, the government has redrawn ITR timelines, linking deadlines directly to the ITR form you use.
In her Budget speech, Nirmala Sitharaman announced two major compliance-friendly steps: more time to revise returns and staggered ITR filing deadlines. Soon after, the Finance Ministry issued detailed FAQs to clarify how these changes will work in practice.
Filing deadlines now depend on your ITR form
Until now, most taxpayers rushed to meet a common July 31 deadline. That changes from the 2026-27 tax year onwards, when filing dates will depend on the type of return you file.
ITR-1 and ITR-2: Deadline remains July 31
If you are a salaried employee, pensioner, individual earning income from house property or capital gains, small investor with dividend income and you file ITR-1 or ITR-2, your due date continues to be July 31. There is no change for this large group of taxpayers.
Non-audit business cases and trusts: Deadline extended to August 31
If you are a professional or business owner not required to get accounts audited and filing returns for a trust, you now get one extra month, with the due date shifted from July 31 to August 31.
According to the Finance Ministry’s FAQs, this extension is meant to give more time to prepare books, complete compliances, and reduce grievances.
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 also be mirrored in the existing Income-tax Act, 1961 for assessment year 2026-27. This ensures there is no mismatch between the old and new tax laws during the transition.
Big relief: More time to revise your ITR
Another key announcement is about revised returns.
Earlier, taxpayers could revise their ITR only till December 31. Any mistake found after that often meant notices, penalties, or lengthy correspondence.
Now, returns can be revised up to March 31 with a nominal fee. This gives taxpayers three extra months to fix errors related to income, deductions, or late information—making compliance less stressful.
A quick guide: Which ITR form is meant for whom?
As of assessment year 2025-26, there are seven ITR forms. These forms are currently being redesigned and will be notified shortly. The number may remain the same or reduce once officially announced.
Here’s a simple snapshot of who uses which form:
ITR-1 (Sahaj): Salaried individuals with income up to ₹50 lakh, one house property, and other income like interest
ITR-2: Individuals and HUFs with capital gains, more than one house property, or foreign assets
ITR-3: Individuals and HUFs with income from business or profession
ITR-4 (Sugam): Small taxpayers opting for presumptive taxation
ITR-5: Firms, LLPs, AOPs, and BOIs
ITR-6: Companies
ITR-7: Trusts and entities required to file under special sections
The redesigned forms are expected to be simpler, shorter, and easier to understand, in line with the new tax law.
New Income Tax Act from April 2026
All these changes come ahead of the rollout of the Income-tax Act, 2025, which will replace the decades-old tax law from April 1, 2026. The government says the new Act focuses on simpler language, fewer disputes, and smoother compliance.
What this means for taxpayers
-Check your ITR form first—your deadline depends on it
-Salaried taxpayers don’t need to worry about deadline changes
-Small businesses and trusts get extra breathing room
-Mistakes in ITRs can now be corrected till March
For taxpayers, Budget 2026-27 may not have delivered slab relief, but it has clearly tried to make ITR filing less rushed and less intimidating.
aniltikotekar4sme.com 