Budget 2026-27 Proposes 12-Month Window From Assessment Year End To File Revised Income Tax Returns

As per the proposals in the Union Budget 2026–27, the government has proposed extending the time limit for filing a revised income tax return from the existing nine months to twelve months from the end of the relevant assessment year.

At present, the deadlines for filing a belated return under Section 139(4) and a revised return under Section 139(5) coincide, both expiring nine months from the end of the relevant assessment year. As a result, taxpayers who file a belated return towards the end of the permitted period do not get an opportunity to revise their return.

The proposed amendment seeks to address this issue by extending the time limit for filing a revised return to twelve months from the end of the relevant assessment year. This would allow taxpayers who file belated returns close to the deadline to revise their returns, where required, within the additional time provided.

Accordingly, it is proposed to amend Section 139(5) of the Income-tax Act to extend the time limit for filing a revised return from nine months to twelve months from the end of the relevant assessment year. The budget also proposes to levy a fee for revised returns filed beyond nine months, as may be prescribed.

The amendment is proposed to take effect from 1 April 2026 and will apply from assessment year 2026–27 onwards, subject to the passage of the Finance Act, 2026.