Budget 2026: Sitharaman proposes revised ITR filing till March 31 with nominal fee

In the Union Budget 2-26-27, Finance Minister Nirmala Sitharaman on Sunday proposed to increase time limit for filing revised income tax return (ITR) from December 31 to March 31 with nominal fee.

Sitharaman also proposed staggered timeline for filing tax returns: individuals filing ITR-1 and ITR-2 will continue to file by July 31 whereas non-audit business cases and trusts will be allowed time until 31st August.

Follow our live coverage of Budget 2026-27
here

Moreover, Sitharaman proposed that tax deducted at source (TDS) on the sale of immovable property be deducted and deposited through the resident buyer using their PAN-based challan instead of requiring a TAN, a temporary accounting number.

Sitharaman also proposed reduction in the tax collected at source (TAX) rate for pursuing education and medical education under liberalised remittance scheme from 5 per cent to 2 per cent. She further proposed to cut TCS on the sale of overseas tour packages to 2 per cent from 5 per cent — the rate was previously 20 per cent earlier.

Sitharaman also proposed a rule-based automated process for small taxpayers in the budget.