The government proposed a staggered timeline for income tax return (ITR) filing in Union Budget 2026 to streamline compliance and reduce peak-season pressure on taxpayers.
Simplified Deadlines for Individuals
Individuals filing ITR-1 (Sahaj) and ITR-2 forms maintain the traditional July 31 deadline, accommodating salaried employees and those with capital gains or foreign assets. This continuity ensures timely refunds while aligning with salary crediting cycles.
Extended Timeline for Businesses
Non-audit business entities, working professionals, and trusts gain an extended August 31 deadline for returns, providing additional time for accounts finalization without audit complexities. This reform benefits lakhs of small businesses and trusts managing year-end financials.
Compliance Efficiency Benefits
The staggered approach distributes processing loads across IT portals, minimizes errors from rushed filings, and supports the new tax regime’s simplified structure. It enhances overall taxpayer experience while maintaining revenue collection timelines.
