The income tax return deadline is not the same for every taxpayer for Assessment Year (AY) 2026-27.
While salaried employees and most taxpayers filing ITR-1 or ITR-2 had to submit their returns by July 31, 2026, taxpayers with business or professional income who are not required to undergo a tax audit have more time.
For these taxpayers, the ITR filing deadline is August 31, 2026.
The Income Tax Department has also reminded eligible taxpayers to complete their filing before the due date.
Who Needs to File ITR by August 31?
The August 31 deadline mainly applies to taxpayers earning income from a business or profession who are not covered by tax audit requirements.
This can include eligible business owners, freelancers, consultants, professionals, proprietors and other taxpayers whose accounts do not need to be audited under income tax rules.
Depending on their income and taxation method, such taxpayers may generally need to file ITR-3 or ITR-4.
The August 31 deadline also applies to eligible firms, LLPs and certain trusts and other non-audit entities covered by the relevant filing rules.
Why Was the Deadline Extended?
The government changed the filing timeline for the 2026 tax-filing cycle.
Under the Union Budget 2026-27, the deadline for non-audit business cases and trusts was extended from the earlier July 31 deadline to August 31.
The change gives taxpayers additional time to prepare their books and complete the required compliance work before filing their returns.
According to the latest data available on the e-filing portal, 6.95 crore ITRs have been filed so far, of which 5.39 crore returns have been processed.
Who Does Not Get the August 31 Deadline?
The August 31 deadline does not apply to everyone.
Salaried employees, pensioners and other taxpayers who generally file ITR-1 or ITR-2 had a July 31, 2026 deadline. That deadline has already passed for AY 2026-27.
Taxpayers whose accounts require a tax audit get a later deadline.
Their tax audit report is due by September 30, 2026, while the ITR filing deadline for audit cases is generally October 31, 2026.
Taxpayers covered by transfer-pricing provisions have an even later deadline of November 30, 2026.
ITR Deadlines for AY 2026-27
| Category | Due Date |
|---|---|
| Business/professional taxpayers not subject to audit | August 31, 2026 |
| Eligible non-audit firms, trusts and other applicable entities | August 31, 2026 |
| Tax audit report | September 30, 2026 |
| Taxpayers whose accounts require audit | October 31, 2026 |
| Transfer-pricing cases | November 30, 2026 |
Audit vs Non-Audit: What Does It Mean?
Whether your business needs a tax audit depends on more than just turnover.
Generally, a business may require an audit when its sales, turnover or gross receipts exceed ₹1 crore.
This threshold can increase to ₹10 crore if cash receipts and cash payments stay within the prescribed 5% limit.
For professionals, the general tax-audit threshold is ₹50 lakh in gross receipts.
Certain taxpayers can also become liable for an audit depending on factors such as whether they opt out of presumptive taxation or declare income below the prescribed presumptive limits.
Therefore, taxpayers should consider their income, turnover, cash transactions, taxation method and other applicable conditions before deciding whether they fall under the audit or non-audit category.
ITR-3 vs ITR-4: Which Form Should You File?
Choosing the correct ITR form is another important step for taxpayers filing by August 31.
ITR-3 is generally used by individuals and HUFs earning income from business or profession who are not eligible to file ITR-4.
ITR-4, also called Sugam, is available to eligible resident individuals, HUFs and firms other than LLPs who meet the prescribed conditions and choose presumptive taxation under sections such as 44AD, 44ADA or 44AE.
For instance, an eligible freelancer using presumptive taxation under Section 44ADA may be able to file ITR-4.
Similarly, an eligible business owner using Section 44AD may also qualify.
However, if a taxpayer has income or transactions that fall outside the conditions for ITR-4, ITR-3 may be required instead.
Taxpayers should therefore check their eligibility carefully and avoid waiting until the last day to complete their ITR filing.
