New Delhi: Union Finance minister Nirmala Sitharaman on Sunday proposed to extend deadline for revising income tax returns (ITR) from December 31 to March 31, 2026 with the payment of a nominal fee.
Presenting the Budget, Sitharaman said a nominal fee of Rs 5,000 will be levied if revised ITR is filed after December 31.
A penalty of Rs 1,000
will be applicable if taxable income does not exceed Rs 5 lakh.
This will be levied under Section 2341.
As per the existing Income Tax Act, an individual can file revised ITR for a particular assessment year by December 31. For example, revised ITR filed for AY25-26 (FY24-25) could have been filed till December 31, 2025.
But with several taxpayers facing issues in claiming foreign credit, , the date has been extended.
Individual taxpayers classified as Resident and Ordinarily Resident (ROR), who make some money from overseas, faced challenges. Last year’s Union Budget had provided some relief by allowing these taxpayers to file ITR-U (updated returns) within 48 months (earlier 24 months) after the end of the relevant assessment year.