ITR Filing AY 2026-27: With the Income Tax Return (ITR) filing season entering its final phase, many taxpayers are unsure whether their filing deadline is July 31 or August 31. The confusion stems from changes announced in the Union Budget 2026, which introduced different due dates for different categories of taxpayers.

While most salaried individuals and pensioners are still required to file their returns by July 31, 2026, certain business owners and professionals whose accounts are not subject to tax audit have been given time until August 31, 2026.

According to the Income Tax Department's e-filing portal, more than 4.37 crore Income Tax Returns for Assessment Year (AY) 2026-27 have already been filed.

Here's a category-wise breakdown of the applicable deadlines.

Who Must File Their ITR by July 31?

The July 31, 2026 deadline generally applies to taxpayers who are eligible to file ITR-1 (Sahaj) or ITR-2.

This category broadly includes:

Salaried Employees and Pensioners

Individuals earning income primarily from:

• Salary

• Pension

• Interest income

• Other eligible sources covered under the applicable ITR forms

should generally complete their filing before July 31, provided no other conditions require a different return form.

Taxpayers Eligible to File ITR-1

Resident individuals may generally use ITR-1 if they satisfy the prescribed eligibility conditions, including those whose long-term capital gains fall within the limits specified under the applicable provisions.

Taxpayers Required to File ITR-2

Individuals who are not eligible for ITR-1 because of factors such as:

• Higher long-term capital gains,

• Short-term capital gains,

• Other eligible non-business income,

may need to file ITR-2, provided they do not have income from business or profession requiring another return form.

Who Can File Their Return by August 31?

The August 31, 2026 deadline is available for taxpayers with business or professional income whose accounts do not require a tax audit.

ITR-3

This return form is generally applicable to:

• Proprietors

• Consultants

• Freelancers

• Professionals

• Individuals with eligible business income

• Certain taxpayers reporting Futures & Options (F&O) trading income, depending on their tax circumstances

ITR-4 (Sugam)

ITR-4 is generally meant for eligible:

• Resident individuals

• Hindu Undivided Families (HUFs)

• Firms (excluding LLPs)

who satisfy the prescribed conditions, including those opting for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE, subject to the applicable income limits and eligibility requirements.

What About Taxpayers Whose Accounts Require Audit?

Businesses and professionals covered under mandatory tax audit provisions follow a separate compliance schedule.

The key due dates are:

These deadlines apply only where a tax audit is required under the Income Tax Act.

Why Knowing the Correct Deadline Matters

Filing your ITR before the applicable due date offers several advantages:

• Avoids late filing fees.

• Reduces the risk of interest on unpaid tax.

• Helps ensure faster processing of your return.

• May speed up refund processing for eligible taxpayers.

• Provides sufficient time to correct any errors before submission.

Waiting until the last moment can also make it difficult to resolve discrepancies in:

• Form 26AS

• Annual Information Statement (AIS)

• Taxpayer Information Summary (TIS)

• Bank account details

• Tax deduction claims

What Happens If You Miss the Due Date?

Taxpayers who fail to file their return within the applicable deadline may still be able to submit a belated return, subject to the provisions of the Income Tax Act.

However, late filing may result in:

• A late filing fee of up to ₹5,000 under applicable provisions.

• A reduced fee of up to ₹1,000 for eligible taxpayers whose total income falls within the prescribed limit.

• Interest on outstanding tax liability, wherever applicable.

• Possible delays in refund processing.

Final Takeaway

The correct ITR filing deadline depends on your source of income, the return form you are required to file, and whether your accounts are subject to tax audit.

• July 31, 2026: Generally applicable to salaried individuals, pensioners, and most non-business taxpayers filing ITR-1 or ITR-2.

• August 31, 2026: Generally applicable to eligible business owners and professionals filing ITR-3 or ITR-4 whose accounts are not subject to audit.

• October 31, 2026: Applicable to taxpayers whose accounts require a statutory tax audit.

Before filing your return, confirm the correct ITR form and applicable due date based on your income profile. Filing within the prescribed timeline can help you avoid penalties, reduce compliance issues, and ensure smoother processing of your Income Tax Return.