Budget 2026: Proposed amendments in relation to return filing compliances

Finance Bill, 2026 proposes revision to the timelines for filing of returns of income as under:

SI No.	Particulars	Current Provisions	Proposed Provisions (w.e.f. tax year 2026-27 onwards)	Remarks
A	Return filling Timelines
(i)	Due date for filing return of income by following assessees whose accounts are not required to be audited : (a)    Taxpayers having PGBP income not liable to audit; (b)    Partners of firm (where firm is not required to be audited)	31st July	31st August	One month extension granted; For other assesses, due dates remains the same
B	Revised Return Timelines
(i)	Time limit for filing revised return	9 months from end of relevant tax year	12 months from end of relevant tax year	Additional 3-month window provided, subject to payment of additional fees; Additional fee for total income up to INR 5 lakh – INR 1,000 and in other cases, INR 5,000
(ii)	Time limit for filing belated return	9 months from end of relevant tax year	Unchanged	Belated return timeline continues as earlier

Further, Finance Bill 2026 proposed to expand scope for filling of updated return effective from tax year 2026-27 onwards, by allowing filing of the updated return in the following cases which were previously not allowed:
a) Where the original return was a loss return, and the updated return results in a reduction of the reported loss;
b) Where a reassessment notice has already been issued (subject to payment of applicable tax and interest, additional income-tax of 25% (first year), 50% (second year), 60% (third year) or 70% (fourth year) from the end of the financial year succeeding the relevant tax year, along with a further 10% as an additional levy for filing updated return post-reassessment notice; The assessee is barred from filing any other return in response to such notice and the income so disclosed shall not attract penalty.)

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