The income tax return (ITR) filing deadline for taxpayers with income from business or profession is now less than two weeks away. While missing the last date does not mean you lose all options, filing late can incur additional interest and late-filing fees, and may have other consequences.
The 31 August deadline applies to taxpayers filing ITR-3, ITR-4, ITR-5 or ITR-7 who have income from business or profession but are not required to have their accounts audited under the Income-tax Act, 1961.
Who gets more time after 31 August deadline?
The 31 August deadline is not for everyone. Your due date depends on your income, whether your accounts are subject to tax audit and the income tax return form applicable to you.
Certain taxpayers, including those whose accounts are required to be audited, get more time to file their returns. So, before you start filing, make sure you know which deadline applies to you and avoid delaying it until the last minute.
If you have income from a business or profession and have opted for the presumptive taxation scheme, you are liable for a tax audit (where applicable), so your due date for filing ITR is 31 October. In such cases, you still need to file ITR-4 but get additional time to fulfil the compliance requirement.
Meanwhile, transfer pricing cases have until 31 November to file their ITR. Transfer pricing refers to the pricing of goods, services, or intangible assets between related entities, such as a holding company and its subsidiaries or different divisions within a corporate group.
What happens if you miss 31 August deadline?
If 31 August is your applicable ITR deadline and you miss it, you can generally file a belated return within the stipulated due date.
For AY 2026-27, a belated return can generally be filed until 31 December or before the completion of assessment, whichever is earlier. But missing the original ITR deadline also comes with a late filing fee, as mentioned below:
- If the taxpayer’s income is above ₹5 lakh, filing a belated return will incur a penalty of up to ₹5,000.
- If the taxpayer’s income is up to ₹5 lakh, the maximum penalty for filing a belated ITR is ₹1,000.
Additionally, the taxpayer will be liable to pay interest at a rate of 1% per month, or part of a month, on the unpaid tax amount as per Section 234A. The interest is calculated from the applicable ITR due date for the relevant financial year until the date the return is actually filed. It applies only to those with outstanding tax dues who fail to file their return on time.
There can also be consequences if you want to carry forward certain eligible losses to future years. This makes timely ITR filing particularly important for business owners, traders and other taxpayers who may have losses to set off against future income.
Can you correct details or omissions in your filed ITR?
Yes, a taxpayer is allowed to make corrections in their filed tax returns under Section 139(5) of the Income-tax Act, 1961.
The window to file a revised return remains open until 31 December 2026. However, taxpayers can also file a revised return by 31 March 2027, after paying the prescribed late fee.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.