Overview
- As of July 20–21, about 2.77 crore income‑tax returns have been filed for assessment year 2026–27 compared with 6.97 crore filed for AY 2025–26, leaving many taxpayers rushing to meet the July 31 deadline.
- The July 31 date applies to taxpayers who must use ITR‑1 or ITR‑2, mainly salaried individuals, pensioners and those with only capital gains and no business income.
- Under Section 234F a late‑filing fee is ₹1,000 where total income is up to ₹5 lakh and ₹5,000 where income exceeds ₹5 lakh, and Section 234A charges interest at 1% per month or part‑month on any unpaid tax.
- Taxpayers with business or professional income file later: non‑audit cases by August 31, tax audit reports by September 30, and audit‑linked returns by October 31, and late filing generally blocks carry‑forward of most business and capital losses.
- Returns for AY 2026–27 remain governed by the Income Tax Act, 1961, but the Income Tax Department says filings for later years will follow the Income Tax Act, 2025, a change taxpayers and advisers should prepare for.