Budget 2026: Income Tax Deadline Extended for Small Taxpayers

1. The Payslip Puzzle: Allowances are payments made to salaried employees over and above basic pay. Though meant to meet specific expenses, income tax law does not automatically grant relief on all allowances. Under the Income-tax Act, allowances are taxable by default unless a specific exemption, full or partial, is clearly provided. (Image: istock)

Budget

CNBC TV18•01-02-2026, 14:44

Budget 2026: Income Tax Deadline Extended for Small Taxpayers

•The Union Budget 2026-27 extends the income tax filing deadline for small businesses and professionals not subject to audit to August 31, from the previous July 31.
•Salaried individuals filing simple returns will retain the July 31 deadline.
•The window for filing revised returns has been extended from nine to twelve months from the end of the tax year, allowing corrections for belated filings, potentially with a nominal fee after nine months.
•A new rule-based automated scheme is proposed to simplify filing and reduce procedural burdens for small taxpayers.
•Industry experts like Avnish Arora, Kamal Poddar, Sanjiv Bajaj, and Venkatesh Naidu lauded these changes as practical, taxpayer-friendly, and aimed at modernizing the tax framework.

Why It Matters: Budget 2026 extends income tax deadlines for small taxpayers and simplifies compliance, fostering a taxpayer-friendly environment.

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