The Income Tax Department has received over 6.5 crore returns for assessment year 2026-27 as of August 20. Taxpayers falling under the ITR-3, 4, 5, and 7 categories should complete their filings by August 31 to avoid late penalties, the loss of tax benefits, and potential portal congestion.
The Income Tax Department has reached a milestone of 6.5 crore income tax return (ITR) filings for the assessment year 2026-27 as of August 20, 2026. This progress comes as the crucial August 31 deadline approaches for non-audit taxpayers. The department is urging individuals who have not yet submitted their tax returns to complete the process early to avoid the technical risks that often occur during the final days of the filing window.
This deadline specifically applies to taxpayers who are not required to get their accounts audited. This includes those filing ITR-3 (for business or professional income), ITR-4 (for those using presumptive taxation), ITR-5 (for firms, LLPs, and AOPs), and ITR-7 (for trusts and similar entities). For these taxpayers, filing on time is essential to maintain financial flexibility and compliance.
Why the August 31 Deadline Matters
Missing the tax deadline carries several direct consequences. Under Section 234F of the Income Tax Act, taxpayers who file after the due date may be liable to pay a late-filing fee, which can go up to ₹5,000 depending on the total income. Furthermore, any outstanding tax liability attracts interest under Section 234A until the return is finally filed.
For investors and professionals, the most significant risk of missing the deadline is the inability to carry forward losses. Taxpayers who have incurred losses from stock market trading—including futures and options (F&O)—or other business ventures cannot carry these losses forward to set off against future income if the return is not filed by the due date. This can impact long-term tax planning strategies for active market participants.
Accuracy and Verification
To ensure a smooth filing process, taxpayers are encouraged to reconcile their data with the Annual Information Statement (AIS) and Form 26AS. These documents contain critical financial details, such as dividends, interest income, and stock transactions, which must match the entries in the ITR form. Discrepancies between the ITR and these official statements are common triggers for scrutiny notices from the tax department, which can lead to extended procedural delays and administrative stress.
Finally, the filing process is not complete without e-verification. Once a taxpayer uploads the return, they must verify it using Aadhaar-based OTP or net banking within the stipulated timeframe. An unverified return is legally treated as an incomplete filing. With the August 31 deadline approaching, taxpayers should avoid last-minute rush to prevent portal slowdowns, which can complicate the process of generating OTPs or completing the necessary digital signatures.