ITR filings cross 7 crore as August 31 deadline approaches

More than seven crore income tax returns (ITRs) have been filed for Assessment Year (AY) 2026-27, with the Income Tax Department reminding eligible business and professional taxpayers that the August 31 filing deadline is fast approaching.

The seven-crore milestone was crossed as of August 27, reflecting another surge in return filing ahead of the next major compliance deadline. The August 31 due date applies to taxpayers earning income from business or profession whose accounts are not required to undergo a tax audit. The department has urged eligible taxpayers to complete the process without waiting until the final day, when increased traffic on the e-filing portal can lead to a last-minute rush.

Seven-crore mark crossed

The latest numbers mark a sharp rise from August 20, when more than 6.5 crore returns had been filed for AY 2026-27. At that stage, over two crore ITR-3 and ITR-4 returns had been submitted through the e-filing portal.

More than 5.9 crore ITR-1 and ITR-2 returns had already been filed by the July 31 deadline applicable to taxpayers falling under those categories.

The filing calendar for AY 2026-27 provides different deadlines depending on the category of taxpayer and whether accounts are required to be audited. The August 31 deadline is particularly important for individuals and entities earning business or professional income but falling outside mandatory audit requirements.

The revised timeline gives such taxpayers additional time compared with other non-audit taxpayers whose deadline was July 31.

Who needs to file by August 31

Depending on their income and circumstances, taxpayers approaching the August 31 deadline may be required to use forms including ITR-3, ITR-4, ITR-5 or ITR-7.

ITR-3 is generally applicable to individuals and Hindu Undivided Families having income from business or profession and who are not eligible to use the simpler return forms.

ITR-4, or Sugam, can be used by eligible resident individuals, HUFs and firms other than LLPs with total income of up to Rs 50 lakh where business or professional income is calculated under the presumptive taxation provisions.

Other entities, including firms, LLPs, associations of persons and certain other categories of taxpayers, may be required to use ITR-5, depending on their status and income.

The department has made all seven ITR forms for AY 2026-27 available for filing through online and offline utilities.

Missing deadline can prove costly

Taxpayers who fail to submit their returns by the applicable due date are not necessarily barred from filing later. A belated return for AY 2026-27 can generally be filed until December 31, 2026, or before completion of assessment, whichever is earlier.

However, missing the original deadline can carry financial consequences. A late-filing fee of up to Rs 5,000 may apply, while taxpayers with total income not exceeding Rs 5 lakh face a lower fee of Rs 1,000.

Interest may also become payable on outstanding tax liability, while delayed filing can affect the ability to carry forward certain losses to subsequent assessment years.

With the August 31 deadline now only days away, the tax department has advised taxpayers covered by the non-audit business and professional category to complete their filings early rather than leave the exercise until the closing hours.