Missed the ITR deadline? Here’s what you should know

August 8, 2026 Finance Talk Valli Sarvani

Filing income tax returns on time helps taxpayers avoid penalties and ensures faster processing of refunds.

Although the July 31 deadline for filing ITR-1 and ITR-2 has passed, eligible taxpayers still have an opportunity to submit a belated return.

They can file it until December 31, 2026. However, delayed filing comes with additional costs and certain tax-related restrictions.

According to tax experts, a belated return attracts a late filing fee under the Income Tax Act, 1961. Moreover, taxpayers may have to pay interest on any outstanding tax liability.

Delayed filing can also affect the ability to carry forward specific losses, including business and capital losses, except where the law provides exemptions.

The Income Tax Department reported that more than 5.9 crore income tax returns for Assessment Year 2026-27 were filed by the July 31 deadline.

In comparison, over 7.3 crore returns were submitted by the extended deadline of September 16 last year.

Meanwhile, taxpayers with business or professional income have different due dates. Those whose accounts do not require an audit can file returns without penalty until August 31, 2026.

Similarly, taxpayers whose accounts require an audit have time until October 31, 2026.

For individuals filing a belated return, the late fee depends on total annual income. Taxpayers earning up to ₹5 lakh must pay a fee of ₹1,000.

Those with income above ₹5 lakh will pay ₹5,000. However, individuals earning below the basic exemption limit do not have to pay a late filing fee.

Additionally, unpaid tax liabilities attract interest under Section 234A at 1% per month, or part of a month, until the outstanding amount is cleared. Delayed filing may also postpone the processing of eligible tax refunds.

Taxpayers can revise an already filed return until March 31, 2027. Furthermore, the return filing process for Assessment Year 2026-27 will continue under the Income Tax Act, 1961.

From the next assessment year, the provisions of the Income Tax Act, 2025 will govern income tax return filing.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image published on April 02, 2017