New Delhi, August 31: The Income Tax Department has issued a final reminder to taxpayers with business or professional income who are not required to have their accounts audited. The department announced on Monday that the deadline for filing Income Tax Returns (ITR) for the assessment year 2026-27 is August 31, 2026. Eligible taxpayers must file and verify their returns before the deadline expires.
In a post on the social media platform X, the department noted that over 70 million ITRs have already been filed. The department stated, “More than 70 million ITRs have been submitted for the assessment year 2026-27. For taxpayers with business or professional income who are not subject to audit, the deadline is August 31, 2026. Don’t wait until the last moment; file your ITR today.”
Taxpayers are advised to select the correct form when filing their returns and to accurately report their income. Additionally, they should match their financial figures with the information available in the Annual Information Statement (AIS) to avoid any errors or notices later.
Typically, ITR-3 is for individuals and Hindu Undivided Families (HUF) whose income is from business or profession and who are not eligible to file ITR-1, ITR-2, or ITR-4. Meanwhile, ITR-4 (Sugam) is available for eligible resident individuals, HUFs, and partnership firms benefiting from the presumptive taxation scheme under sections 44AD, 44ADA, or 44AE of the Income Tax Act.
The tax department has warned that missing the deadline could lead to several issues for taxpayers, including late fees, interest on outstanding tax, delays in refunds, and the loss of certain tax benefits.
However, if a taxpayer is unable to file their return by today’s deadline, they can submit a delayed return by December 31, 2026, provided the assessment process has not been completed beforehand. Nevertheless, filing a delayed return may result in the forfeiture of several important benefits, including the ability to carry forward business or capital losses to subsequent years.
According to regulations, if a taxpayer’s total income exceeds ₹5 lakh, a late fee of up to ₹5,000 may be imposed under section 234F. If the total income is below ₹5 lakh, the fee will be capped at ₹1,000.
Additionally, taxpayers with outstanding tax liabilities may incur interest at the rate of 1% per month on the owed amount under section 234A.
The department also clarified that taxpayers with business or professional income who wish to opt out of the new tax regime and revert to the old tax system must file their income tax returns within the stipulated timeframe.
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