Lockdown 4.0 and its guidelines will remain in force till May 31 with states/UTs and district authorities taking the call on classifying and mapping red, orange, green, containment and buffer zones.
The government's disaster response authority said that new guidelines would be issued, "keeping in view the need to open up economic activities".
The country went into lockdown on 24 March and schools, public transport and most businesses have been shut since.
India has recorded 2,896 deaths. It has more than 90,000 confirmed coronavirus cases and 53,946 active infections.
It is the fourth time the federal government has extended the world's largest lockdown, covering 1.3 billion people. India media dubbed the extension "lockdown 4.0".
Maharashtra, Tamil Nadu, Rajasthan extend lockdown
On Sunday, the state governments of Rajasthan, Maharashtra and Tamil Nadu extended the lockdown till May 31. In Tamil Nadu, the government has relaxed restrictions for 25 districts while the others continue to observe a lockdown in accordance with the MHA's latest orders.
The statewide curfew in Himachal Pradesh was also extended till May 31, Chief Minister Jai Ram Thakur said on Sunday.
Rajasthan sees highest single-day spike
With 242 fresh cases of Covid-19, Rajasthan witnessed its highest single-day spike in new cases of infection on Sunday. Apart from it, Maharashtra reported 2,347 new cases, Tamil Nadu 639 new cases, Delhi 422 new cases, Madhya Pradesh 187 new cases, Jammu and Kashmir 62 new cases, Bihar 58 new cases, Telangana 42 new cases, Andhra Pradesh 25 new cases, Punjab 18 new cases, Kerala 14 new cases, and Jharkhand and Assam 6 new cases each apart from other states.