The August 31 deadline to file Income Tax Returns (ITRs) for certain taxpayers is here.
Individuals with business or professional income whose accounts do not need a tax audit must file their returns for Assessment Year (AY) 2026-27 by today.
According to the Income Tax Department, around 7 crore ITRs have already been filed.
For those who are yet to file, today is the last opportunity to submit the return without the additional consequences that can come with late filing.
Who Comes Under the Non-Audit Taxpayer Category?
A tax audit is an examination of a taxpayer’s accounts to check whether income, expenses, deductions and other financial details have been correctly reported.
Taxpayers whose accounts do not need to undergo a tax audit are generally classified as non-audit taxpayers.
For businesses, a tax audit is generally required when annual sales, turnover or gross receipts cross ₹1 crore.
However, this limit can increase to ₹10 crore if cash receipts and cash payments remain within the specified 5% limit.
For professionals, the general threshold is ₹50 lakh.
The limit can rise to ₹75 lakh under Section 44ADA if at least 95% of receipts are received through digital modes.
What Happens If You Miss the August 31 Deadline?
Missing the deadline does not mean you have lost the opportunity to file your ITR completely.
Taxpayers can still submit a belated return, but late filing can result in additional costs and other consequences.
These can include:
A late filing fee of up to ₹5,000
A reduced late fee of ₹1,000 for taxpayers whose total income is below ₹5 lakh
1% monthly interest on unpaid tax under Section 234A
Loss of the ability to carry forward certain losses, including eligible capital, business and Futures & Options losses
Reports suggest that a significant number of taxpayers file their ITRs after the original deadline.
Can You Correct an ITR After Filing?
Yes. If you file your return on time but later discover a mistake, you can generally file a revised ITR.
Errors could include incorrect income details, missed deductions or a calculation mistake.
The revised return can generally be filed up to March 31 or completion of the assessment, whichever is earlier, subject to the applicable rules.
A revised return can also be filed after a belated return, provided the original return was filed within the permitted timeline.
Taxpayers should also note that a return filed manually cannot be revised online.
What If You Have Not Verified Your ITR?
There is also a discard facility for taxpayers who have filed their return but have not completed verification.
In such cases, the taxpayer can discard the unverified ITR and file a fresh return with the correct details.
This can be useful if a mistake is discovered before the return is verified.
ITR-U Gives Another Chance to Correct Your Return
Taxpayers who have not filed their return or need to correct certain errors can also have another option through the Updated Income Tax Return (ITR-U) under Section 139(8A).
However, filing an updated return comes with additional tax.
Depending on when the ITR-U is filed, the additional tax can be:
25% when filed within 12 months from the end of the assessment year
50% when filed after 12 months but within 24 months
75% when filed after 24 months but within the applicable four-year window
Therefore, taxpayers who are covered by today’s deadline should avoid waiting until later, as delaying the filing can increase the financial burden.
The Income Tax Department has also urged taxpayers to file their returns on time under its message: “Be the tax hero.”
