New Delhi: Only 11 days remain for many taxpayers to file income tax returns for Assessment Year 2026-27 before the 31 July deadline. However, the date does not apply to everyone. The correct deadline depends on the type of income and whether an audit is required.
According to the Income Tax Department’s portal, 2.77 crore returns have been filed for AY 2026-27. During AY 2025-26, taxpayers filed 6.97 crore returns.
Who Must File?
The 31 July deadline covers taxpayers eligible to use ITR-1 or ITR-2. These include salaried people, pensioners and individuals earning capital gains but no income from business or profession.
Resident individuals may use ITR-1 if their long-term capital gains do not exceed Rs 1.25 lakh, along with salary income, subject to other conditions.
Those reporting long-term capital gains above Rs 1.25 lakh or taxable short-term capital gains will need ITR-2, provided they have no business income.
Different Deadlines
People earning income from a business or profession, where accounts do not require a tax audit, can file by 31 August. Depending on eligibility, they may use ITR-3 or ITR-4.
Taxpayers whose accounts require an audit have until 31 October to submit their return. Their tax audit report must be filed by 30 September, one month earlier.
Missing Deadline
People whose deadline is August or October will not face late-filing consequences because they miss 31 July.
However, taxpayers covered by the July deadline may face a fee under Section 234F. The fee is Rs 1,000 where total income does not exceed Rs 5 lakh and Rs 5,000 where it exceeds Rs 5 lakh. No fee applies if income is below the basic exemption limit.
Other Costs
If tax remains unpaid, interest under Section 234A is charged at 1% for every month or part of a month after the due date.
A late return may stop taxpayers from carrying forward most business and capital losses. House-property losses and unabsorbed depreciation are exceptions. Refund processing may be delayed.
Returns for AY 2026-27 remain governed by the Income Tax Act, 1961. The Income Tax Act, 2025 will govern filings for later tax years, according to the Income Tax Department.
