Budget 2026: ITR Error Correction Deadline Extended to March 31

• Union Finance Minister Nirmala Sitharaman announced an extension for ITR error correction in Budget 2026.
• Taxpayers now have until March 31, instead of December 31, to revise their income tax returns.
• This extension provides an additional three months to update income details or correct errors, reducing penalty risks.
• A new Income Tax Act, notified in July 2025, will be effective from April 1, 2026, simplifying direct tax laws.
• The new Act is revenue-neutral, with no changes in tax rates, and aims to reduce litigation through simplified rules.

Why It Matters: Taxpayers get three more months to correct ITR errors; new simplified Income Tax Act effective April 1, 2026.