No revisions to income tax slabs have been made in Budget 2026, and it has been reiterated that the Income Tax Act shall come into force w.e.f. 1st April 2026. The impact of the new Income Tax Act on ITR filing for this year is illustrated below.
When Shall the New ITR Forms be Notified?
As per the budget announcement, the new Income Tax Act shall come into force on April 1, 2026, and simplified income tax norms and forms shall be notified soon. The paperwork has been revised to make it easier for regular people to follow.
Is the Revised Income Tax Return Filing Due Date Extended?
With a nominal fee, the last date of ITR filing has been proposed to be extended from December 31 to March 31.
Is There a Revision in the ITR Filing Last Date for Individuals?
The Finance Minister did not make any revisions to the ITR filing with ITR 1 and ITR 2, which shall continue to be July 31. But, non-audit business cases or trusts shall now be permitted to submit returns till August 31.
Share Buyback to be Considered as Capital Gains
Budget 2026 offers a change in the taxation of buybacks for all types of shareholders as capital gains. However, to deter the use of tax arbitrage, promoters shall be required to pay an extra buyback tax. This will result in an effective tax rate of 22% for business promoters. For non-corporate promoters, 30% shall be the effective tax rate.
Revisions in the Updated Return Concerning Losses
Budget 2026 has proposed to enable the filing of updated returns if the taxpayers lower the loss amount vis-à-vis the loss amount specified in the original ITR. The proposed revision shall be effective from April 1, 2026. In both the old and new income tax acts, the change shall be applicable.
Automation in Applying for NIL Deduction Certificates
A new scheme has been notified where small taxpayers shall be issued a nil-deduction certificate via a rule-based automated process by the income tax department.
Scheme for Disclosure of Foreign Assets
A one-time 6-month foreign asset disclosure scheme has been declared by the government for small taxpayers like students, young professionals, tech employees, relocated Non Resident Indian (NRIs), and others to reveal income or assets below a specific size.
