Income Tax Return (ITR) filings for Assessment Year (AY) 2026-27 are gathering significant momentum as the July 31 deadline for most individual taxpayers draws near. Latest official data reveals that over 14.3 million ITRs have already been submitted, with 13.7 million of these successfully verified.
No Extension Expected for July 31 Deadline
Despite the rapid increase in submissions, government sources have indicated that an extension to the July 31 deadline is highly improbable. The income tax e-filing portal has been reported to be functioning efficiently, negating the primary reason for past extensions.
For the fiscal year 2025-26, a total of 91.9 million income tax returns were filed. The highest volume, 35.1 million, comprised ITR 1 forms, typically used by resident individuals earning up to Rs 50 lakh from salary or pension. While ITR 1 filings saw a nearly 19% drop by June 30 this year compared to the previous period, there has been a notable surge in submissions for ITRs 2, 3, and 4.
Key Deadlines and Consequences of Missing Them
- July 31: Due date for most individual taxpayers, including salaried individuals and Hindu Undivided Families (HUFs) in non-audit cases.
- August 31: Deadline for non-audit returns filed by businesses and professionals using ITR 3 and 4.
Taxpayers who fail to file their ITR by the respective deadlines still have the option to submit a belated return by December 31, 2026. However, doing so will incur late fees and interest charges. Any errors or corrections in filed returns can be rectified by submitting a revised income tax return by March 31, 2027.
New Tax Regime and Filing Obligations
A significant number of taxpayers have transitioned to the new income tax regime, which offers tax exemption for incomes up to Rs 12 lakh without claiming specific exemptions. However, tax experts emphasize that opting for the new regime does not eliminate the need to file an ITR.
Filing an ITR remains mandatory for individuals with an income exceeding Rs 4 lakh under the new regime, or Rs 2.5 lakh under the old regime. Additionally, those involved in certain high-value transactions are also required to file their returns, regardless of their income level.