File ITR by Augsut 31, 2026 else risk late fee
August 31, 2026 marks the crucial deadline for taxpayers to file their income tax returns (ITR) if they have business or professional income and do not require a tax audit. Failure to do so will trigger a late fee, capped at Rs 5,000, and the submission of a belated return. Shalini Jain, a Tax Partner at EY India, clarified this to ET Wealth Online, stating that partners of non-audit firms fall under the same obligation.
A table detailing the ITR filing deadlines for various taxpayer categories in the FY 2025-26 (AY 2026-27) was provided. For salaried individuals and other non-audit taxpayers without business or professional income, the deadline is July 31, 2026, and July 31, 2027, respectively. In contrast, taxpayers with business or professional income whose accounts are not subject to audit, partners of such firms, and certain trusts have an extended deadline of August 31, 2026.
Chartered Accountant Abhishek Soni, co-founder of Tax2Win, explained that taxpayers who miss the August 31, 2026 deadline can still file a belated ITR up to December 31, 2026, but this may incur a late-filing fee under Section 234F, limited to Rs 5,000 or Rs 1,000 if the taxpayer's total income is below Rs 5 lakh. Interest may also apply depending on the tax liability and circumstances.
However, Soni warned that missing the due date could impact the taxpayer's choice of tax regime. For those with business or professional income, opting out of the new tax regime requires filing Form 10-IEA within the specified due date under Section 139(1). Missing the August 31, 2026 deadline means they cannot opt for the old tax regime for the AY 2026-27.
The extended deadline is a result of an amendment in Budget 2026, aimed at providing additional time for taxpayers to finalize their accounts and file returns. Partner Shaily Gupta from Khaitan & Co said that this extension recognizes the compliance challenges faced by certain taxpayers. The change, through the Finance Act, 2026, applies to taxpayers engaged in business or profession not requiring audit, partners of non-audit firms, and certain trusts.
Gupta stated that this allows taxpayers an extra month to complete their ITR filing process. Additionally, the deadline for filing revised returns has been extended from nine months to twelve months from the end of the relevant tax year.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
