The proposed amendment of the revised return timeline extension to 12 months applies only from AY 2026-27, not AY 2025-26, with an additional fee for delayed revisions.
Saloni Kumari | Mar 31, 2026 |
Tax Rule Buzz on Social Media: New Revised Return Timeline Extension Applies from AY 2026-27
Recently, a serious discussion has gained attention over social media (platform ‘X’), revolving around the amendment proposed to Section 139(5) of the Income Tax Act, 1961. The amendment is leading to confusion among taxpayers.
It was proposed that with the effect of the Finance Act, 2026, from April 01, 2026, taxpayers are allowed to revise their Income Tax Return (ITR) for Assessment Year (AY) 2025-26 on or before March 31, 2026, by making payment of some additional fee under Section 234-I. This interpretation has been made by a user named Ved Jain on platform ‘X’; clarifying the same, a Chartered Accountant (CA) Avinash Kumar Rao has stated that this interpretation is not correct.
He highlighted that it has been clearly flagged in the Budget 2026-27 official memorandum that the proposed amendments to Section 139(5) of the Income Tax Act, 1961, and the additional fee under Section 234-I are scheduled to take effect from Assessment Year 2026-27 onwards (i.e., from the previous year 2025-26).
The proposal is aimed at extending the time limit to furnish a revised return, i.e., from 9 months to 12 months from the end of the relevant tax year. The government had noticed that the time limits for filing both belated and revised returns were the same, i.e., nine months. Because of this, taxpayers were not left with time to furnish a revised return after filing a belated return.
Consequently, to resolve this issue, the government proposed this amendment in order to provide taxpayers with some extra time to file a revised return or to correct mistakes even after filing a belated return. However, to avoid unnecessary delays, an additional fee has been proposed for the revised returns furnished after the 9-month time limit. This fee will be charged under Section 234-I.
Wrong info, sir. This amendment was never proposed for AY 2025-26. In the memorandum, it was clearly written that “It is proposed that these amendments shall come into force from the 1st day of March 2026 in the Income-tax Act 1961 and shall be applicable for the… https://t.co/403bMtsfiq pic.twitter.com/psALluNnjA
— CA Avinash Kumar Rao (@theavinashrao) March 31, 2026
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