Revised return deadline extended to help belated filers, global earners

Bear in mind that substantial changes in a revised return can invite closer examination by tax authorities

The Budget has proposed extending the time limit for filing a revised return from nine to 12 months from the end of the relevant tax year, or before completion of assessment, whichever is earlier. The proposal gives taxpayers more time to correct genuine errors and incorporate updated information.

 

“It reinforces a trust-based tax regime and acknowledges the practical realities faced by taxpayers,” says Abhishek Paliwal, partner, King Stubb & Kasiva, Advocates and Attorneys.

 

This extension will come into effect from April 1, 2026. Consequently, it will apply from assessment year (AY) 2026–27 onwards, that is, for returns pertaining to financial year (FY) 2025–26.

 

A taxpayer must pay a fee if they file a revised return after December 31 but before March 31. “The fee will be Rs 1,000 if income is up to Rs 5 lakh, and Rs 5,000 if it is above Rs 5 lakh,” says Suresh Surana, a Mumbai-based chartered accountant.

 

What is a revised return? 

A taxpayer files a revised return under Section 139(5) of the Income-tax Act, 1961, to correct errors, omissions, or incorrect statements in the original return. “Once accepted, it completely replaces the original return for assessment purposes,” says Rajarshi Dasgupta, executive director, tax, AQUILAW.

 

A taxpayer may file a revised return if they report income incorrectly, miss any income or an income head, fail to claim a deduction or exemption, claim deductions or exemptions incorrectly, compute tax incorrectly, give incorrect bank account details, or make other administrative errors. “They may also file it if they miss reporting foreign assets or income, or if the reported income does not match the annual information statement (AIS),” says Rupali Singhania, partner, Areete Consultants.

 

A revised return cannot be filed once the assessment is completed. “A taxpayer can revise the return even if the tax department has issued them an intimation under Section 143(1) or a scrutiny notice under Section 143(2), provided the revision timeline has not expired,” says Singhania.

 

Any taxpayer who filed an original return—whether on time or belated—can file a revised return. “The law was changed from AY 2017–18, allowing even a belated return to be revised,” says Itesh Dodhi, director, Nangia & Co.

 

Who gains from the extension 

Taxpayers often receive important documents, such as revised Form 16, TDS certificates, or proof of foreign income, after the original return deadline has passed. “A longer window gives them adequate time to incorporate the information in these documents into their revised return,” says Dasgupta.

 

People with international tax linkages may also benefit. “A March-end deadline aligns better with several global tax calendars and can reduce mismatch risk,” says Dasgupta.

 

The extension will also give those who file a belated return (the deadline for which is also December 31) more time to revise it.

 

It will promote voluntary compliance by letting taxpayers fix genuine errors without the fear of notices or disputes. It will also reduce the tax department’s administrative burden. “The extension will help reduce assessments, penalties, and litigation arising from inadvertent errors, while enabling smoother compliance and closure of the tax year,” says Surana.

 

A revised return, however, has a couple of downsides as well. “A revised return may attract closer examination by the tax authorities if there are substantial changes. The introduction of a nominal fee adds a small cost,” says Paliwal.

 

Keep documents handy 

Before filing a revised return, taxpayers should keep details of income, deductions, foreign assets, bank accounts, AIS/taxpayer information summary (TIS), and TDS certificates. “The details of the original return, such as the date of submission and acknowledgement numbers, are also required at the time of filing a revised ITR,” says Singhania.

 

Dodhi adds that taxpayers should keep documentation to justify the reason for the revision, in case the tax department raises a query later. If the revision results in additional tax and interest, they should keep a copy of the challan details to mention in the revised return.

 

Points to heed 

A taxpayer should not wait for a notice for assessment or reassessment to revise. “If they notice an omission or wrong statement, they should revise immediately to avoid litigation and penal provisions,” says Dodhi.

 

If the revision deadline has passed, a taxpayer may file an updated return in certain circumstances. “If additional tax and interest are payable due to the revision, taxpayers should pay them before revising,” says Dodhi.

 

A revised return is a corrective mechanism. “It is not an opportunity to make a fresh claim. It should not be used to fundamentally change the tax position taken earlier,” says Dodhi.

 

Finally, reconcile income with Form 26AS and AIS before revising the return.

 

Procedure for filing a revised return

 

1. Log in to the e-Filing portal using your credentials
2. Go to: ‘e-File’ > ‘Income Tax Return’ > ‘File Income Tax Return’
3. Choose the correct assessment year and select ‘Revised Return’
4. Enter the acknowledgement number and date of filing of the original return
5. Update or correct the required details in the relevant ITR form
6. Submit the form and immediately e-verify the return

 

Source: Areete Consultants