New Delhi: In a major procedural reform announced as part of the Union Budget 2026-27, Finance Minister Nirmala Sitharaman introduced a staggered schedule for income tax return filings, marking a shift from the traditional uniform filing window to a more structured, phased timeline aimed at improving administrative efficiency and taxpayer convenience.
The move, unveiled during the Budget presentation in Parliament on Sunday, signals the government’s intent to streamline tax administration and reduce year-end filing congestion that has long challenged both taxpayers and the Income Tax Department.
Under the new proposal, tax returns will be filed according to different phases based on taxpayer categories, income brackets or other criteria yet to be notified by the Central Board of Direct Taxes (CBDT).
The staggered timeline is expected to decongest the e-filing system’s peak traffic windows, improve accuracy in submissions and help the tax machinery process returns more efficiently throughout the assessment year.
The existing single closing deadline often results in last-minute rushes, errors and IT portal slowdowns that frustrate taxpayers and professionals alike.
A staggered framework could give different segments of taxpayers—such as individuals, senior citizens, businesses and those with foreign assets—distinct windows to file returns, allowing better compliance and support.
However, details such as the eligibility criteria for each filing phase, the sequence of deadlines and the specific administrative calendar will be outlined by the CBDT in subsequent notifications.
The staggered approach complements other tax-administration reforms hinted at in the Budget, including broader efforts to simplify assessment rules and reduce compliance burdens for taxpayers as part of India’s ongoing push to make its tax system more taxpayer-friendly.