ITR Revision Window Extended Till March 31 | Misreporting Penalty Raised To 100% Of Tax Due

New Delhi: The government has extended the deadline for revising Income Tax Returns (ITRs) till March 31 of the relevant assessment year. However, the original filing deadline of July 31 will remain unchanged for salaried individuals and small taxpayers who file ITR-1 and ITR-2.

This means taxpayers will still need to file their returns on time by July 31, but they will now get extra time till March 31 to correct mistakes or update information in their returns. The move is aimed at giving people more flexibility to fix genuine errors without rushing.

Stricter Penalty for Misreporting Income

Finance Minister Nirmala Sitharaman announced a tougher penalty for misreporting income. If a taxpayer is found guilty of giving wrong or incomplete information, the penalty will now be 100% of the tax amount due.

Earlier, penalties varied depending on the nature of the mistake. The new rule sends a strong message that intentional misreporting will not be tolerated and aims to improve tax compliance.

TDS on Property Sales by Non-Residents

The government has also introduced Tax Deducted at Source (TDS) on the sale of immovable property by non-residents. This means when a non-resident sells property in India, tax will be deducted at the time of sale itself.

This step is meant to ensure better tax collection and prevent revenue leakage in high-value property transactions.

Foreign Asset Disclosure Scheme for Small Taxpayers

A new six-month foreign asset disclosure scheme has been announced for small taxpayers. Under this scheme, individuals who have overseas assets but failed to declare them earlier will get a limited window to disclose these assets voluntarily.

The aim is to encourage honest reporting without immediately taking harsh action, especially for small taxpayers who may have made genuine mistakes.

Lower TCS on Overseas Tour Packages

The government will also reduce Tax Collected at Source (TCS) on overseas tour packages to 2%, from the earlier range of 5% to 20%.

This move is expected to make foreign travel cheaper and reduce the upfront tax burden on travellers.

Simpler Income Tax Rules Coming Soon

The finance minister said that simplified income tax rules will be notified shortly. These are expected to make tax laws easier to understand and reduce confusion for individual taxpayers.

Overall, the announcements focus on making compliance easier for honest taxpayers while taking a strict stand against deliberate tax evasion.

Published on: Sunday, February 01, 2026, 12:13 PM IST