ICAI Suggests Extended Time for Filing Belated and Revised ITRs in Pre-Budget 2026 Memorandum

In its Pre-Budget Memorandum 2026, the Institute of Chartered Accountants of India (ICAI) has suggested that the government should extend the time limit for filing belated and revised income tax returns. ICAI believes that the current time period is too short for taxpayers to find and correct mistakes in their returns.

The memorandum refers to Section 263(4) and Section 263(5) of the proposed law, which are similar to Sections 139(4) and 139(5) of the Income-tax Act, 1961. These sections deal with filing late returns and correcting errors. ICAI has requested more time so that taxpayers can file accurate returns without unnecessary pressure.

As mentioned in the memorandum, “As per section 263(4), any person who has not furnished a return within the time allowed to him under sub-section (1) may furnish the return for any tax year at any time within nine months from the end of the relevant tax year, or before the completion of the assessment, whichever is earlier.” It further explains, “As per section 263(5), if any person, having furnished a return under sub-section (1) or sub-section (4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time within nine months from the end of the relevant tax year, or before the completion of the assessment, whichever is earlier.”

ICAI highlighted that these rules limit the time for filing belated and revised income tax returns to nine months after the end of the financial year, that is, up to 31st December. This matches the existing deadlines already mentioned in Sections 139(4) and 139(5) of the Income-tax Act, 1961.

The memorandum stated, “The additional time to file a belated return and a revised return is too short.” It further explains, “Earlier, the time limit was within 12 months (31st March) of the end of the relevant assessment year. Many taxpayers may only become aware of errors or omissions in their return during the course of assessment proceedings. By this time, the window for filing a revised return has already closed.”

According to ICAI, this will give taxpayers more time to check their details properly and fix any mistakes or missing information. Tax experts also believe that having clear and fixed deadlines is important. Because the July 31 ITR deadline has been extended many times, people often get confused and feel rushed at the last minute.

Many tax experts says that if the government accepts ICAI’s recommendations in the Budget 2026, taxpayers could gain several benefits such as: they may get more time to identify and correct genuine errors, experience better alignment with fixed due dates along with faster processing of refunds and face a lower risk of penalties arising from technical or timing issues

Taxpayers and tax professionals will be eagerly observing whether these recommendations make it into the Union Budget on February 1, 2026,  when Finance Minister Nirmala Sitharaman delivers her Budget speech.