Missed your tax deadline? Budget 2026 offers relief with March 31 extension

In her Budget speech on February 1, Nirmala Sitharaman proposed extending the deadline to file revised and belated income tax returns up to March 31. The move gives individuals more time to correct errors or file returns that were missed earlier in the assessment year.

 

For many taxpayers, delays happen due to genuine reasons—late Form 16s, missing bank interest details, confusion around new tax rules, or simple oversight. Until now, missing earlier deadlines often meant higher penalties and limited options to fix mistakes.

 

“Allowing taxpayers to file a revised income tax return up to March 31 with a nominal fee is a significant step towards a more facilitative and trust-based tax system. Many taxpayers miss earlier deadlines due to genuine errors, delayed information, or lack of clarity, and this extended window provides a practical opportunity to correct mistakes without facing harsh penalties. The move encourages voluntary compliance, reduces litigation, and aligns with the government’s broader objective of making tax administration simpler, more humane, and taxpayer-friendly," said Rajarshi Dasgupta, Executive Director - Tax, AQUILAW.

 

For individual taxpayers—especially salaried employees, freelancers, and small business owners—the proposal means less anxiety, more flexibility, and a fairer chance to get their taxes right. The move aligns with the government’s broader push to make tax administration simpler, more humane, and taxpayer-friendly.