With the deadline to file Income Tax Returns (ITR) for Assessment Year (AY) 2026-27 ending on Friday, July 31, lakhs of taxpayers are expected to make a last-minute dash to complete the process and avoid penalties, interest and compliance issues.
The deadline applies to most salaried individuals, pensioners and other taxpayers filing ITR-1 (Sahaj) and ITR-2, provided their accounts are not required to be audited. This includes people earning income from salary, one or more house properties, interest, dividends, capital gains and other eligible sources.
As of now, the government has not announced any extension to the July 31 deadline, despite such relaxations being granted in some previous years.
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Who has to file by today?
For most individuals, filing an ITR becomes mandatory if their total income exceeds the basic exemption limit.
Under the old tax regime, the exemption limit is:
{{/usCountry}}Under the old tax regime, the exemption limit is:
{{/usCountry}}- ₹2.5 lakh for individuals below 60 years
- ₹3 lakh for senior citizens (60 years to below 80 years)
- ₹5 lakh for super senior citizens (80 years and above)
-Under the new tax regime, the basic exemption limit is ₹4 lakh for all age groups.
-Apart from those crossing the income threshold, taxpayers may also choose to file voluntarily to claim refunds, maintain an income record, or support applications for loans and visas.
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How to file your ITR
Taxpayers can file their returns through the Income Tax Department's e-filing portal by keeping a few key documents handy, including Form 16/16A, Form 26AS, the Annual Information Statement (AIS), bank statements, salary slips and investment proofs.
Step-by-step process to file ITR
-Log in to the Income Tax e-Filing portal using your PAN and password.
-Click on e-File, then Income Tax Returns, and select File Income Tax Return.
-Choose Assessment Year 2026-27 and select the online filing option.
-Pick the correct form based on your income. ITR-1 (Sahaj) is meant for most salaried individuals with income up to ₹50 lakh and limited sources of income, while ITR-2 is for individuals and Hindu Undivided Families (HUFs) with income above ₹50 lakh or those with capital gains and more complex income sources, but no business or professional income.
-Verify the pre-filled details using your AIS and Form 26AS, review the return, and check for any errors.
-Submit the return and complete the process by e-verifying it using Aadhaar OTP, net banking or any other available electronic verification method.
No Form 16? You can still file
Salaried employees waiting for Form 16 need not delay filing if they have other relevant documents.
Taxpayers can calculate their taxable income using salary slips, bank statements, Form 26AS and the Annual Information Statement (AIS), and file their returns before the deadline.
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What happens if you miss the July 31 deadline?
Taxpayers who fail to file their returns by the July 31 deadline may still be able to submit a belated return.
-Late filing fee of up to ₹5,000 under Section 234F of the Income Tax Act, 1961, depending on the taxpayer's income and other applicable conditions.
-Interest on unpaid tax under Section 234A, where applicable.
-Delay in receiving income tax refunds.
-Loss of the ability to carry forward certain losses to future assessment years, subject to the provisions of the Income Tax Act.