The government has proposed important amendments to the Income-tax Act, 2025, aimed at providing taxpayers with greater flexibility in filing revised income tax returns. Currently, Section 263 of the Act lays down the framework for income tax return filing, including due dates and types of returns such as original, belated, revised, and updated returns.
What is a Revised Return?
Under Section 263(5) of the Income-tax Act, 2025, a taxpayer who has already filed an original or belated return can submit a revised return if any omission or incorrect statement is discovered in the initial filing. This can include errors related to income, deductions, exemptions, losses, or other particulars. At present, the revised return must be filed within nine months from the end of the relevant tax year, or before the completion of assessment, whichever is earlier.
Proposed Extension of Filing Period
The government now proposes to extend the period for filing revised returns from nine months to twelve months from the end of the relevant tax year. This amendment addresses a key limitation: taxpayers filing belated returns towards the end of the nine-month period currently cannot revise their returns. The extended timeline will allow them the opportunity to correct errors even if the belated return is submitted late.
Additional Fee for Late Revisions
Along with the extension, a fee under Section 428(b) will be applicable for revised returns filed beyond nine months from the end of the relevant tax year. These changes are expected to take effect from 1st April 2026 for the tax year 2026-27 and subsequent years.
Alignment with Income Tax Act, 1961
Since Section 263 corresponds to Section 139 of the Income-tax Act, 1961 , similar amendments are proposed under Section 139(5) to align timelines. Additionally, a fee under Section 234I will apply for late revised returns in this Act. These amendments are expected to be effective from 1st March 2026, applicable for the Assessment Year 2026-27 (previous year 2025-26).
Official copy of the Clause is as follows
Extending the period of filing revised return
Section 263 of the Income-tax Act, 2025 deals with filing of Income-tax return by taxpayers. The said section prescribes the comprehensive framework that lays down class of persons who are required to file a return, the due dates, and the different types of returns that may be furnished. It covers the original return, belated return, revised return and updated return.
2. Further, section 263(5) of the Act provides for the revised return of income. It allows a person who has already furnished a return under section 263(1) and (4) to file a revised return, if any omission or wrong statement is discovered in the original or belated return.
Such revised return required to be furnished within nine months from the end of the relevant tax year or before completion of assessment, whichever is earlier.
3. Section 263(5) allows a taxpayer to revise an original or belated return to rectify any omission or wrong statement, relating to income, deductions, exemptions, losses, or any other particulars.
4. It is considered to increase the prescribed time limit for filing the revised return from existing 9 months to 12 months from the end of the relevant tax year. As presently, the timeline for revised and belated return coincides with each other which is nine months from the end of the relevant tax year. Hence, a person who is filing his belated return at the end was not having the opportunity to revise his return of income. The extension of time limit for filing revised return of income, will allow the taxpayers to file revised return where belated return is filed at the end.
5. In this regard, it is proposed to amend section 263(5) of the Act so as to increase the prescribed time limit for filing the revised return from its existing time limit of nine months to twelve months from the end of the relevant tax year. Further, a fee is also proposed under section 428(b), for revised returns which are filed beyond nine months from the end of relevant tax year.
6. These amendments will take effect from 1st day of April 2026 for the tax year 2026-27 and subsequent years.
7. Further, section 263 corresponds to section 139 of the Income-tax Act, 1961. Therefore, similar amendments are also proposed in section 139(5) of the Income-tax Act, 1961. Further, a fee is also proposed under section 234I. It is proposed that these amendments shall come into force from the 1st day of March 2026 in Income-tax Act 1961 and shall be applicable for Assessment year 2026-27 (previous year 2025-26).
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