ITR Filing 2026: With just four days left before the July 31, 2026, deadline for filing income tax returns (ITRs) for the assessment year (AY) 2026-27, taxpayers who are yet to file their returns should
avoid waiting until the last minute. If you miss the July 31 deadline, you will have to end up incurring financial costs and other drawbacks.
“The July 31 deadline should be considered by taxpayers as the final due date, without expecting any extensions. Any deadline extension seems unlikely, given the trends of the past few years. Taxpayers should also not wait for the last day to file their income tax return, as the e-filing portal might face glitches due to heavy website traffic that day,” a Delhi-based tax practitioner, who wished not to be named, said.
According to the latest data available on the income tax portal, over 4.10 crore ITRs have been filed so far, while 3.85 crore returns have been verified and 2.33 crore returns have been processed as of July 26, 2026. More than 14.08 crore users are registered on the e-filing portal.
Last year, in the full assessment year 2025-26, a total of 6.97 crore ITRs were filed by taxpayers.
Can you file your ITR after July 31?
Yes. If you miss the July 31 deadline, you can still file a belated ITR. However, filing late can result in penalties, interest and the loss of certain tax benefits. For AY 2026-27, a belated return can generally be filed up to December 31, 2026, unless the assessment is completed earlier.
What is the penalty for filing ITR after July 31?
Under Section 234F of the Income Tax Act, taxpayers filing a belated return may have to pay Rs 5,000 if the total income exceeds Rs 5 lakh, Rs 1,000 if the total income is up to Rs 5 lakh, and no late fee if the total income is below the basic exemption limit and there is no filing obligation.
Interest on unpaid tax
If any tax remains unpaid after July 31, taxpayers may also have to pay interest under Section 234A, generally at 1% per month or part of a month on the outstanding tax amount until the return is filed. Other applicable interest provisions may also apply depending on the case.
You may lose the benefit of carrying forward losses
Missing the due date can also affect your ability to carry forward certain losses to future financial years. This mainly impacts taxpayers who have capital losses or business losses, as these generally cannot be carried forward if the return is filed after the due date, subject to exceptions allowed under tax law.
Delay in tax refund
If you are eligible for an income tax refund, filing your return late could delay the processing and payment of the refund. The earlier the return is filed and verified, the sooner it is likely to be processed.
Why you should not wait till the last day
Tax experts advise taxpayers to avoid filing at the last minute, as heavy traffic on the e-filing portal, document mismatches, or verification issues can lead to unnecessary delays. Filing well before the deadline gives taxpayers enough time to correct errors, verify their return and ensure faster processing and refunds.
Who needs to file ITR by July 31?
Taxpayers eligible to file ITR-1 and ITR-2 are required to submit their income tax returns by July 31. This category generally includes salaried individuals and those with capital gains or losses.
Resident individuals with long-term capital gains (LTCG) of up to Rs 1.25 lakh, along with salary income and subject to other eligibility conditions, can file ITR-1. However, those with LTCG exceeding Rs 1.25 lakh or taxable short-term capital gains generally need to file ITR-2, provided they do not have business income.
Taxpayers with business or professional income that is not subject to tax audit have until August 31 to file their returns. Depending on the nature of income and eligibility, they are required to file either ITR-3 or ITR-4.
Meanwhile, taxpayers whose accounts are required to be audited have until October 31 to file their income tax returns. The tax audit deadline is September 31.
