The August 31 deadline to file Income Tax Returns (ITRs) for AY 2026-27 is here for taxpayers with business or professional income whose accounts do not require a tax audit.
According to the Income Tax Department, around 7 crore ITRs have already been filed.
Those who are yet to submit their returns have one final opportunity to file them on time and avoid late-filing consequences.
Missing today’s deadline does not mean taxpayers lose the option to file their return.
However, a delayed filing can result in late fees, interest and loss of certain tax benefits.
Who Is a Non-Audit Taxpayer?
A tax audit is an examination of a taxpayer’s accounts to verify income, expenses, deductions and other financial details.
Taxpayers whose accounts are not required to undergo a tax audit are generally considered non-audit taxpayers.
For businesses, a tax audit is generally mandatory when sales, turnover or gross receipts exceed ₹1 crore.
For professionals, the usual threshold is ₹50 lakh. This can increase to ₹75 lakh under Section 44ADA if at least 95% of receipts are received through digital modes.
For businesses, the turnover threshold can rise to ₹10 crore if cash receipts and payments remain within the prescribed 5% limit.
What Happens If You Miss the August 31 Deadline?
Taxpayers can still file an ITR after the deadline. Such a return is known as a belated return.
However, filing late can make the taxpayer liable for additional costs and may result in the loss of certain benefits.
The possible consequences include:
A ₹5,000 late-filing fee in applicable cases.
The late fee can be ₹1,000 if total income does not exceed ₹5 lakh.
Interest at 1% per month can apply on unpaid tax under Section 234A.
Certain losses, including capital losses, business losses and Futures & Options losses, may not be allowed to be carried forward when the return is filed late.
Reports indicate that a significant number of taxpayers file their ITRs after the deadline each year.
Can You Correct an ITR After Filing?
Yes. Taxpayers who discover mistakes after filing can submit a revised ITR.
Errors could include incorrect income details, missed deductions or mistakes in tax calculations.
The revised return can generally be filed up to March 31 or the completion of assessment, whichever is earlier, subject to the applicable rules.
Taxpayers who filed their original return on time, or filed a belated return by December 31, can use the revised-return facility.
A new provision also provides for a penalty in certain cases where a revised return is filed after December 31 and on or before March 31.
What If You Have Not Verified Your ITR?
There is also a discard facility for taxpayers who have filed an ITR but have not completed its verification.
In such cases, the taxpayer can discard the unverified return and file a fresh return with the correct details.
This can be useful when a taxpayer notices a mistake before completing the verification process.
ITR-U Can Help Correct Older Returns
Taxpayers who have not filed their return or need to correct certain errors can also consider the updated return (ITR-U) facility under Section 139(8A), subject to eligibility.
Additional tax is applicable depending on how late the updated return is filed:
Within 12 months from the end of the assessment year: additional tax of 25%.
After 12 months but within 24 months: additional tax of 50%.
After 24 months and within the permitted four-year period: additional tax of 75%.
Therefore, taxpayers who are still waiting to file should avoid unnecessary delays and check which filing option applies to their situation.
The Income Tax Department has also urged taxpayers to file their returns on time under its message: “Be the tax hero.”
