Budget 2026 Changed Your ITR Deadlines — Here's What's Different

The single July 31 deadline is no longer the only date you need to remember.

Every year, the same deadline applies to pretty much everyone — July 31. You file your ITR by July 31, or you pay a penalty. Simple.

Budget 2026 just changed that. For the first time, your ITR deadline now depends on what kind of taxpayer you are. Some people still have July 31. Others get an extra month. And if you've ever filed a wrong return and wanted to fix it? You now have until March 31.

Let's break it all down.

First, Find Out Which Deadline Is Yours

Different people file different ITR forms. And Budget 2026's changes affect each form differently. Here's a quick lookup:

Not sure which form you file? The simplest rule: if you have business or professional income and your accounts don't need a statutory audit, you're in the August 31 group. If you're salaried with or without investments, you're in the July 31 group.

Change #1: Freelancers and Small Businesses Get August 31

This is the main change for non-salaried taxpayers. If you file ITR-3 or ITR-4 and your business isn't required to get audited, your deadline moves from July 31 to August 31.

Why does this matter? Think about what July 31 looks like for a freelancer. You're scrambling to close your books, reconcile every invoice, add up TDS credits from multiple clients, figure out advance tax, and file — all by the same day as a salaried employee who just needs their Form 16.

The extra month lets you close your FY 2025-26 books properly before filing. It's not a huge shift, but for the ~2.13 crore people who file ITR-4 and the ~1.25 crore who file ITR-3, it's a meaningful breathing room.

Change #2: You Can Fix Your ITR Until March 31

This one might actually be the most useful change for the largest number of people — and it's getting far less attention than it deserves.

Here's the situation it solves. Say you filed your ITR in July. A few months later — maybe in November or December — you realise you forgot to declare a fixed deposit interest income, or entered the wrong bank account for your refund, or missed a deduction. Under the old rules, you had until December 31 to fix it.

But what if you only realised the mistake in January? Too bad. Deadline gone.

Budget 2026 extends the revised return deadline by 3 months, to March 31 of the assessment year.

The Fee Structure

Honestly? Rs. 1,000–5,000 to fix an error that could save you from a tax notice or recover a refund you missed is a bargain. FM Sitharaman specifically called it a "nominal fee" in her Budget speech.

Who Benefits Most From This?

• People who filed a belated return near December 31 — Previously, if you filed a belated return on December 31, you had exactly zero days to then revise it (both had the same deadline). Now you have until March 31.
• NRIs and people with foreign income — Documents from overseas often arrive late. The March 31 window gives you time to incorporate foreign income, tax credit claims, and Form 67 details properly.
• Anyone who got a new Form 26AS update after December — TDS corrections or late filings by employers sometimes show up after December. You can now act on them.

What DIDN'T Change

A few things that were expected to change — but didn't:

• Belated return deadline: Still December 31. ICAI had suggested extending this to March 31 too, but Budget 2026 didn't act on it. Only the revised return window was extended.
• Salaried employee deadline: Still July 31. If you file ITR-1 or ITR-2, nothing changes for you.
• Audit case deadline: Still October 31 for entities that need statutory audits.
• Updated return window: Still 48 months (4 years) from the end of the relevant assessment year.
• Late filing penalty (Section 234F): Unchanged. Rs. 1,000 if income ≤ Rs. 5 lakh, Rs. 5,000 if above.

The Full Deadline Calendar for AY 2026-27

Here's every important date in one place, for returns you'll be filing this year:

One More Thing: The Tax Audit Penalty Got Stricter

If you're a CA or run a business that requires a tax audit — pay attention to this. Budget 2026 converted the tax audit late filing penalty into a flat fee, and the numbers are steep:

• Delay up to 1 month: Rs. 75,000
• Delay beyond 1 month: Rs. 1,50,000

Previously, the penalty was 0.5% of turnover (capped at Rs. 1.5 lakh), which created endless litigation over what counts as "turnover". By making it a flat fee, the government removed that ambiguity. The trade-off is that even one day's delay triggers Rs. 75,000. No grace period, no proportionality.

When Do These Changes Apply?

Important: these changes apply to Tax Year 2026-27 (AY 2026-27) onwards — that means the returns you'll file starting July 2026 for the income you're earning right now.

For your current AY 2025-26 return (which you filed or are fixing right now), the old rules still apply: revised return deadline was December 31, 2025. If you missed that, your only option for the current year is a belated return by December 31, 2026 or an updated return under Section 139(8A).