Revising a tax return is free until 31 December. Then it costs ₹5,000
The window to correct last year's return now runs three months longer, to 31 March 2027. The extra three months carry a fee. After that, the cost of a fix jumps.
Under the Finance Act 2026, a return for FY 2025-26 can be revised until 31 March 2027, three months later than before, unless the assessment is completed first. A revised return filed after 31 December 2026 carries a fee of ₹5,000, or ₹1,000 if total income is ₹5 lakh or less. After 31 March 2027, the route left is an updated return, which adds 25% to 70% of the tax and interest due.
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A return for FY 2025-26 can now be revised until 31 March 2027. Until this year, the last day was 31 December. The Finance Act 2026, published in the Gazette on 30 March 2026, made the change.
The extra three months come with a fee. A revised return filed after 31 December carries a fee of ₹5,000. The fee is ₹1,000 if total income is ₹5 lakh or less.
What a revised return is for
A revised return replaces a return already filed. Section 139(5) of the Income-tax Act 1961 allows one when the taxpayer finds "any omission or any wrong statement" in the original.
The Budget memorandum lists what it can correct:
- income left out or reported wrongly
- deductions and exemptions
- losses
- any other particulars in the return
Three illustrations of what gets missed:
- a short-term gain from a PMS account, left out in July
- interest on an FD that matured in March
- dividends on US shares held through an RSU account
A revised return can also lower the tax or raise a refund. The later route, an updated return, cannot.
Why the window moved
Until now, the belated return and the revised return shared one deadline. Both closed nine months after the end of the financial year, on 31 December.
The Budget memorandum gives the reason for the change. Someone who filed a belated return in late December had no time left to correct it.
The new rule keeps the belated return deadline at 31 December. The revised return now runs to the end of the assessment year, 31 March, or until the assessment is completed, whichever comes first.
What a fix costs, by date
The dates below are for a return for FY 2025-26, the year that ended on 31 March 2026. The amounts are an illustration: a taxpayer who finds ₹6 lakh of tax and interest left unpaid.
| Correction filed | Route | Extra cost on ₹6 lakh of tax and interest |
|---|---|---|
| By 31 Dec 2026 | Revised return | None |
| 1 Jan to 31 Mar 2027 | Revised return, with fee | ₹5,000 |
| 1 Apr 2027 to 31 Mar 2028 | Updated return | ₹1.50 lakh (25%) |
| 1 Apr 2028 to 31 Mar 2029 | Updated return | ₹3.00 lakh (50%) |
| 1 Apr 2029 to 31 Mar 2030 | Updated return | ₹3.60 lakh (60%) |
| 1 Apr 2030 to 31 Mar 2031 | Updated return | ₹4.20 lakh (70%) |
The tax and interest are due on every route. The table shows only what comes on top.
The fee on a revised return is flat. Above ₹5 lakh of total income, it is ₹5,000 whether the missed tax is ₹10,000 or ₹10 lakh.
The updated return's extra tax is a share of the tax and interest. The shares are 25%, 50%, 60% and 70%, one for each of the four years after the assessment year ends. The Finance Act 2025 added the third and fourth years.
Returns for this year onwards
From FY 2026-27, returns are filed under the Income-tax Act 2025. The same rule is in its section 263(5): a revised return can be filed within twelve months of the end of the tax year.
The fee moves to section 428(b), at the same ₹5,000 and ₹1,000. For FY 2026-27, the fee-free window ends on 31 December 2027 and the revised return closes on 31 March 2028.
What isn't settled
- The fee's wording. Section 234-I of the 1961 Act counts the nine months "from the end of the relevant assessment year". The Budget memorandum counts them from the end of the financial year, which gives the 31 December date. A CA can say how it applies to a particular return.
- A completed assessment. If the assessment of the return is completed before 31 March, the window closes on that date instead.
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Questions
- What is the last date to file a revised return for FY 2025-26?
- 31 March 2027, under the Finance Act 2026, or the date the assessment is completed if that comes first. Before this change, the last date was 31 December 2026.
- Is there a fee for filing a revised return late?
- A revised return filed after 31 December 2026 for FY 2025-26 carries a fee of ₹5,000 under section 234-I, or ₹1,000 if total income is ₹5 lakh or less.
- Can a belated return be revised?
- Yes. Section 139(5) allows a revised return of a belated return. The Budget memorandum says the longer window was added because people filing belated returns in late December had no time left to correct them.
- What is the last date for a belated return for FY 2025-26?
- 31 December 2026. The Finance Act 2026 extended only the revised return window.
- What happens after the revised return window closes?
- An updated return can be filed for four more years. It adds 25% of the tax and interest due in the first year, rising to 50%, 60% and 70%, and it cannot reduce tax or raise a refund.
Sources
- The Finance Act, 2026 (No. 4 of 2026), Gazette of India, sections 5 and 16 (Income-tax Act 1961), sections 66 and 96 (Income-tax Act 2025) (30 Mar 2026)
- Memorandum explaining the provisions in the Finance Bill, 2026: Extending the period of filing revised return; updated return (1 Feb 2026)
- Finance Bill, 2026, notes on clauses for section 234-I (1 Feb 2026)
- Memorandum explaining the provisions in the Finance Bill, 2025: Extending the time-limit to file the updated return (1 Feb 2025)
Compound is analysis, not investment advice. Reva Money is not a SEBI-registered investment adviser.
