New Delhi, Feb. 1 -- In a significant taxpayer-friendly reform announced in the Union Budget 2026-27, Finance Minister Nirmala Sitharaman on Sunday proposed extending the deadline for filing revised income-tax returns (ITRs) from 31 December to 31 March of the relevant financial year. The change, to be implemented under the forthcoming Income Tax Act, 2025, is aimed at improving voluntary compliance and reducing avoidable disputes.

Follow LIVE updates on Income Tax Slab announcement

Addressing Parliament during her Budget speech, Sitharaman said the new legislation would come into force from 1 April 2026, with rules and updated tax return forms to be notified shortly.

Announcing the extension, the finance minister said: "I propose to e...