- Revised return window extended; avoid late filing fees.
The Income Tax Return (ITR) filing season for Financial Year (FY) 2025-26, corresponding to Assessment Year (AY) 2026-27, is now underway. Taxpayers must report income earned between April 1, 2025 and March 31, 2026, and file their returns within the prescribed timelines to remain compliant with tax laws.
Submitting an ITR on time helps taxpayers avoid late filing fees, interest on unpaid taxes and delays in receiving income tax refunds. Before filing, taxpayers should verify income details, tax deductions and supporting documents, including Form 16, the Annual Information Statement (AIS), Form 26AS and the Taxpayer Information Summary (TIS).
The filing calendar for AY 2026-27 also brings important changes. While the deadline for salaried individuals remains unchanged, certain business taxpayers have been granted additional time to submit their returns. The revised return window has also been extended, giving taxpayers more time to correct genuine mistakes.
ITR Last Date For AY 2026-27
Salaried individuals and Hindu Undivided Families (HUFs) whose accounts are not subject to a tax audit must file ITR-1 or ITR-2 by July 31, 2026.
Taxpayers filing ITR-3 or ITR-4 who have business or professional income but are not required to undergo a tax audit have been given an additional month. They can now submit their returns until August 31, 2026, instead of the traditional July-end deadline.
Although the government may revise filing deadlines in exceptional circumstances, taxpayers are advised not to wait until the last moment. Filing early can help avoid portal congestion, technical glitches and last-minute compliance issues.
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Revised Return Rules And Extended Correction Window
Taxpayers who discover errors after filing their returns can submit a revised ITR. Under the updated filing schedule, revised returns for AY 2026-27 can be filed until March 31, 2027, extending the earlier deadline of December 31.
The extended timeline gives taxpayers more flexibility to rectify mistakes, report omitted income, claim eligible deductions or reconcile discrepancies appearing in financial records.
A revised return does not attract any penalty when it is filed in accordance with the prescribed rules. However, according to ClearTax, a return is treated as revised only if the original return was filed within the due date and e-verified within 30 days of e-filing.
If the original return is submitted after the due date, it is treated as a belated return rather than a revised return.
Who Benefits From The New Filing Schedule?
The revised calendar is expected to benefit several categories of taxpayers.
These include small businesses and professionals filing ITR-3 or ITR-4 without tax audit requirements, freelancers and consultants whose books are finalised closer to the deadline, and investors awaiting updated statements from brokers or mutual funds before completing their returns.
The extended revised return deadline also benefits salaried taxpayers waiting for corrections in AIS or Form 26AS, as well as those who later realise they forgot to claim deductions under provisions such as Section 80C or reported incorrect income figures.
Late Filing Can Still Be Expensive
Missing the original filing deadline can result in financial consequences even though taxpayers may still file a belated return until December 31.
Under Section 234F of the Income Tax Act, a late filing fee of up to Rs 5,000 may apply if total income exceeds Rs 5 lakh during the financial year. Taxpayers with income up to Rs 5 lakh may face a reduced late fee of Rs 1,000.
Interest under Section 234A is also levied at 1 per cent per month or part of a month on any outstanding tax liability until payment is made.
Delayed filing may also prevent taxpayers from carrying forward eligible capital losses and business losses to future years. In certain cases, taxpayers may lose the option to choose the old tax regime where applicable, resulting in the new tax regime becoming the default.
Apart from tax implications, delayed filing can affect a person’s financial profile, as banks commonly request recent ITR acknowledgements while processing home, personal and business loan applications.
Why Are Taxpayers Receiving Section 143(2) Notices?
As taxpayers prepare returns for AY 2026-27, many have recently received notices under Section 143(2) of the Income-tax Act, 1961, along with intimations under Section 144B, in relation to returns filed for AY 2025-26.
Receiving such a notice does not automatically indicate that the return is incorrect, that additional tax will be demanded or that penalties will follow. In many cases, it simply means the Income Tax Department requires clarification or supporting documents regarding specific transactions or claims made in the return.
The notices also serve as a reminder for taxpayers filing returns this year to carefully verify income disclosures, deductions, exemptions and the classification of income before submitting their ITR.
Why A Notice Can Arrive Even After ITR Processing
Many taxpayers are surprised to receive a Section 143(2) notice after their return has already been processed under Section 143(1). However, the two provisions serve different purposes.
Processing under Section 143(1) is largely automated and focuses on arithmetic checks, apparent inconsistencies and matching available information with the return filed.
Section 143(2), on the other hand, allows the Assessing Officer to carry out a detailed scrutiny where necessary to verify whether income has been understated, excessive losses have been claimed, taxes have been underpaid or deductions and exemptions have been correctly claimed.
A notice issued under Section 143(2) marks the beginning of a scrutiny assessment that may eventually result in an assessment order under Section 143(3).
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How Scrutiny Cases Are Selected
Contrary to a common belief, scrutiny notices are generally not issued at random.
Most cases are selected through the Computer Assisted Scrutiny Selection (CASS) system, which uses data analytics and risk-based parameters to identify returns that require closer examination.
Returns showing mismatches with Form 26AS, AIS or TIS, high-value transactions, unusual deduction claims or other identified risk indicators may be picked for scrutiny.
Apart from CASS, some returns are selected under the Central Board of Direct Taxes’ Compulsory Scrutiny Guidelines, which cover specific categories identified for mandatory examination.
As a result, receiving a Section 143(2) notice does not necessarily imply wrongdoing. It may simply reflect the department’s risk-based scrutiny process or the application of the CBDT’s compulsory scrutiny guidelines.
