As of now, the government has not announced any extension of the July 31 income tax return (ITR) filing deadline for taxpayers covered under the due date for AY 2026-27. Unless the Income Tax Department issues an official notification extending the deadline, eligible taxpayers should complete their return filing before the deadline expires today. Taxpayers are advised not to rely on speculation or social media claims regarding a possible extension and should follow updates only through official government channels.

Income tax can now be paid through UPI, net banking and, in certain cases, credit cards. Before making the payment, ensure you’ve selected the correct Assessment Year, PAN and tax payment type. Credit card users should also check convenience charges, as processing fees may outweigh any reward benefits. Always preserve the challan and confirm that the payment reflects in the Income Tax system before filing.

Small mistakes can trigger refund delays or tax notices. The most common errors include:

Income mismatch with AIS or Form 26AS
Incorrect capital gains reporting
Wrong deduction claims
Filing the incorrect ITR form
Not e-verifying the return or entering incorrect bank details

A 10-minute ITR filing is possible only for taxpayers with simple salary income and straightforward tax records. Those with capital gains, multiple income sources, deductions or foreign asset disclosures typically need much longer. While pre-filled data speeds up the process, taxpayers remain responsible for verifying every detail. A carefully reviewed return is always better than a rushed submission.

Today, July 31, is the last date to file income tax returns for taxpayers covered under the AY 2026-27 due date. Eligible taxpayers who fail to file by today can still submit a belated return later, but doing so may attract a late filing fee, interest on unpaid taxes and the loss of certain tax benefits.

Not every taxpayer has a July 31 deadline. Taxpayers with business or professional income not requiring a tax audit have until August 31, 2026, while those whose accounts require a tax audit can file their returns by October 31, 2026, without late-filing consequences.

If you’re required to file by July 31 but miss the deadline, Section 234F provides for the following late filing fee:

Income up to Rs 5 lakh: Rs 1,000
Income above Rs 5 lakh: Rs 5,000
Income below the basic exemption limit: No late filing fee

Missing the due date can have wider consequences than just paying a late fee. Taxpayers may have to pay 1% monthly interest on unpaid tax under Section 234A, lose the ability to carry forward certain business and capital losses, and face delays in receiving tax refunds.

Today’s deadline primarily applies to taxpayers filing ITR-1 and ITR-2, including most salaried individuals and eligible taxpayers with capital gains. It also covers certain ITR-5 filers (without business income and not liable to audit) and ITR-7 entities in non-audit cases.

Taxpayers whose due date has been extended under the government’s notification to August 31, 2026, as well as business and professional taxpayers covered by later due dates, are not required to file their returns by July 31.

Adhil Shetty, CEO of BankBazaar, said, “With the July 31 deadline approaching, the biggest risk isn’t filing late, it’s filing in a hurry. Many salaried taxpayers assume ITR-1 is the right form, but if you’ve earned capital gains or traded in stocks, futures and options during the year, you may need to file ITR-2 or ITR-3 instead. Filing under the wrong form can result in a defective return, delaying your refund and potentially triggering a tax notice. Before submitting, reconcile your return with Form 26AS and the Annual Information Statement. Any mismatch between the income you report and the information already available with the tax department can invite scrutiny. Spending a few extra minutes verifying the details is far better than filing in haste and having to revise the return later.”

The expansion of digital payment options has made income-tax compliance considerably more convenient. Taxpayers today can discharge their tax liability through UPI, net banking and, in certain authorised payment modes, even credit cards, eliminating the need for traditional banking processes.

However, taxpayers should appreciate that the choice of payment mode should be driven by efficiency rather than convenience alone. Before making the payment, they must ensure that the correct assessment year, type of tax payment and PAN details have been selected, as errors in these particulars may result in credit mismatches during return processing.

Where credit cards are used, taxpayers should also evaluate the additional convenience charges or processing fees imposed by payment intermediaries. The rewards earned through credit card usage may not necessarily outweigh these costs.

Equally important is preserving the challan details and confirming that the payment is appropriately reflected in the tax records before filing the return. A successful bank transaction does not automatically guarantee seamless credit unless the payment has been correctly captured in the income-tax system.

Digital payments have undoubtedly simplified tax compliance, but taxpayers should focus on accuracy of payment particulars rather than merely the speed of completing the transaction.

One of the biggest mistakes taxpayers make is submitting their ITR without reconciling the figures with AIS, TIS and Form 26AS. Rakesh Goel, Lead Consultant at AQUILAW, said salary, bank interest, TDS and securities transactions should be cross-checked before filing. Any mismatch should be resolved or appropriately explained to reduce the chances of notices or refund delays.

According to CA Suresh Surana, F&O income or loss is treated as non-speculative business income under the Income-tax Act and not as capital gains. In cases where a taxpayer incurs a loss from F&O transactions and intends to either carry forward the loss or set it off against future business income, filing of the Income Tax Return within the prescribed due date becomes essential.

Even where there is no other source of income, filing the return is advisable as business losses are generally allowed to be carried forward for up to 8 assessment years u/s 72 of ITA 1961 (corresponding to 112 of ITA 2025), subject to timely filing and compliance with return u/s 139(1) of the ITA 1961. Typically, such income or loss is required to be reported in ITR-3 or ITR-4 (as applicable), which is applicable for taxpayers having income from business or profession, including F&O trading activity.

Reporting F&O loss in ITR:

Loss arising from Futures & Options (F&O) transactions is generally treated as a non-speculative business loss under Section 43(5) of the Income-tax Act, since eligible derivative transactions carried out on recognised stock exchanges are specifically excluded from the definition of “speculative transaction”. Accordingly, F&O income or loss is required to be reported under the head “Profits and Gains from Business or Profession” (PGBP) in the ITR.

F&O turnover and profit/loss should be disclosed in the business schedules of the applicable ITR form, generally:

· ITR-3 for individuals/HUFs having business income; or

· ITR-4 only where presumptive taxation conditions are satisfied and opted for.

Since F&O loss is treated as non-speculative business loss, it can generally be set off against any income other than salary income in the same year and unabsorbed loss can be carried forward for 8 assessment years subject to timely filing of return under Section 139(1). Tax audit applicability under Section 44AB should also be evaluated based on turnover, profit percentage and applicability of presumptive taxation provisions.

For AY 26-27, specific reporting fields have been introduced for taxpayers engaged in Futures & Options (F&O) trading. Taxpayers are now required to separately disclose turnover from F&O transactions as well as the income from such trading credited to the profit and loss account.

It is important to note that ITR-3 and ITR-4 has the August 31 deadline.

CA Suresh Surana said many taxpayers are reportedly using Section 10(14)(i) in ITR to save tax. What does this section allow and what could be the consequences if someone misuses it?

Exemption Available Only for Prescribed Official Expenditure

Section 10(14)(i) of Income-tax Act (ITA), 1961 exempts only those specified allowances that an employer grants to an employee to meet expenses wholly, necessarily and exclusively incurred in the performance of official duties, and the exemption is available only to the extent such expenses are actually incurred. Such exemption is available only to the extent of the actual expenditure incurred and only in respect of the allowances prescribed under Rule 2BB(1) of the Income-tax Rules (IT Rules), 1962, namely –

It is pertinent to note that the scope of exemption under Section 10(14)(i) is significantly restricted for employees opting for the New Tax Regime under Section 115BAC of ITA 1961. Under the New Tax Regime, exemption in respect of travelling, daily allowance and conveyance to perform official duties is permitted.

Consequences of Misuse

Section 10(14)(i) of ITA 1961 is a conditional exemption and taxpayers should exercise caution while claiming the benefit. Where the prescribed conditions are not fulfilled such as where the allowance is not granted by the employer, the allowance is not covered under Rule 2BB of IT Rules, 1962, or the expenditure has not been actually incurred for official duties the Income-tax Department may disallow the exemption and recompute the taxable income. Consequently, the taxpayer may be liable to pay the additional tax along with applicable interest under Sections 234B and 234C of ITA 1961, wherever applicable. Further, claims that are inconsistent with the salary particulars reported in Form 16 or are unsupported by documentary evidence, such as bills or vouchers, may attract tax notices by the tax authorities. In cases where an incorrect claim results in under-reporting or misreporting of income, penalty proceedings may also be initiated under Section 270A of the ITA 1961.

Hence, taxpayers should avail the exemption under Section 10(14)(i) only where the allowance has been specifically provided by the employer, the related expenditure has been actually incurred in the course of official duties, and sufficient documentation is available to support the claim.

• AY 2021-22: The due date for non-audit taxpayers was extended twice—from July 31 to September 30, and later to December 31, 2021—due to the COVID-19 pandemic. Audit report deadlines were also pushed back till January 15, 2022.
• AY 2022-23: There was no extension for taxpayers with the July 31 deadline. However, the due date for filing audit reports was extended to October 7, 2022, while audit-related ITRs could be filed till November 7, 2022.
• AY 2023-24: The government did not announce any extension, and taxpayers had to adhere to the original due dates.
• AY 2024-25: Relief was limited to audit cases. The audit report deadline was extended to October 7, 2024, audit-linked ITRs to December 15, 2024, and the belated return deadline to January 15, 2025.
• AY 2025-26: The July 31 deadline for non-audit taxpayers was first extended to September 15, 2025, and then by another day to September 16, 2025, mainly due to changes in ITR forms and technical issues on the e-filing portal.

Income Tax India in a post on X said, “Less than 24 hours to go! Over 5.5 crore ITRs have already been filed for AY 2026-27 (with over 42 lakh filed on July 30 alone!). File now, File calmly!”

According to Rakesh Goel, lead consultant at AQUILAW, the income tax department’s compliance framework today is largely driven by data analytics rather than manual scrutiny. Consequently, even relatively small inconsistencies can trigger automated validation checks, leading to refund delays or compliance communications.
Some of the most common mistakes include:
• failing to reconcile income with AIS, Form 26AS or TDS certificates.
• incorrect reporting of capital gains, particularly where taxpayers overlook bonus shares, rights issues, mutual fund redemptions or grandfathering provisions applicable to older investments.
• claiming deductions without satisfying the prescribed statutory conditions or failing to maintain supporting documentation.
• selecting the wrong return form or incorrectly answering key disclosure questions, including the reason for filing the return.
• errors in bank account details or omission to e-verify the return, both of which frequently delay refunds despite otherwise accurate tax computations.
The encouraging aspect is that most of these mistakes are entirely preventable. Taxpayers who spend an additional fifteen to twenty minutes reconciling disclosures before filing can significantly reduce the likelihood of future notices and processing delays.

After filing and e-verifying your Income Tax Return, taxpayers can log in to the Income Tax e-Filing portal and visit ‘View Filed Returns’ to track the status of their return. Once processed, the portal also displays whether a refund has been issued along with relevant details. Ensure your bank account is pre-validated for smooth refund credit.

Incorrect bank account details, mismatch in income reported, failure to disclose interest income, selecting the wrong ITR form and not completing e-verification are among the common reasons that may delay processing of Income Tax refunds.

ITR-5 is filed by entities such as partnership firms, LLPs, Associations of Persons (AOPs), Bodies of Individuals (BOIs) and certain other entities. The due date depends on whether the taxpayer is liable for audit. Certain non-audit ITR-5 filers are covered under today’s deadline, while audit cases generally have a later due date.

ITR-4 (Sugam) is meant for resident individuals, HUFs and resident firms (other than LLPs) opting for the presumptive taxation scheme under Sections 44AD, 44ADA or 44AE.

For AY 2026-27, eligible ITR-4 filers can have:

• Total income of up to Rs 50 lakh;
• Presumptive business or professional income;
• Income from salary or pension;
• Income from up to two house properties;
• Other sources such as interest; and
• Long-term capital gains under Section 112A up to Rs 1.25 lakh.

Unlike today’s deadline applicable to eligible ITR-1 and ITR-2 filers, eligible non-audit ITR-4 returns are due by August 31, 2026.

Many salaried taxpayers are confused between ITR-1 (Sahaj) and ITR-2. You can file ITR-1 (Sahaj) if you are a resident individual with:

• Total income of up to Rs 50 lakh
• Income from salary or pension
• Income from up to two house properties
• Income from other sources such as interest and family pension
• Agricultural income of up to Rs 5,000
• Long-term capital gains under Section 112A of up to Rs 1.25 lakh.

However, ITR-1 cannot be used by individuals with business or professional income, short-term capital gains, foreign assets or income, unlisted equity shares, or total income exceeding Rs 50 lakh. Such taxpayers generally need to file ITR-2 or another applicable return.

CA Suresh Surana said, “The applicable due date continues to be July 31, 2026, for taxpayers filing ITR-1 or ITR-2, while certain non-audit taxpayers having business or professional income and filing ITR-3 or ITR-4 have time until August 31, 2026.”

Choosing the correct ITR form and knowing its due date is essential to avoid late filing consequences.

Before filing your return, ensure that:

• PAN and Aadhaar details are correct.
• Bank account is pre-validated.
• Income matches Form 16, AIS and Form 26AS.
• Deductions claimed are accurate.
• The correct ITR form has been selected.

Taking a few extra minutes to review the return can help avoid notices or delays.

CA Suresh Surana said, “The government has not announced any extension of the ITR filing deadline for Assessment Year 2026-27. Accordingly, the applicable due date continues to be 31 July 2026 for taxpayers filing ITR-1 or ITR-2, while certain non-audit taxpayers having business or professional income and filing ITR-3 or ITR-4 have time until 31 August 2026.”

He added that based on the presently available indications, an extension of due date for filing return appears unlikely. The return forms and relevant utilities were made available substantially on schedule, the staggered filing dates have reduced pressure on the portal, and more than 4 crore returns have already been filed. The Income Tax Department has also arranged 24/7 assistance until 31 July, indicating that it presently expects taxpayers to comply with the existing deadline.

“Therefore, taxpayers should not defer filing in anticipation of an extension. Unless the CBDT issues a formal notification, the presently applicable due date should be treated as final,” Surana said.

Rakesh Goel, lead consultant at AQUILAW, said, “The July 31 due date should not be viewed merely as a procedural deadline—it is the dividing line between a timely and a belated return. While taxpayers may still have an opportunity to file a belated return within the prescribed statutory timeline, the consequences of missing the original due date extend well beyond payment of a late fee. A delayed return may attract a late filing fee, interest on any unpaid tax liability and, more importantly, could restrict the taxpayer’s ability to carry forward certain losses such as capital losses (other than losses specifically permitted by law). This can have a significant financial impact for taxpayers with investment portfolios or business income.”

He added that from a compliance perspective, the Income-tax Department increasingly relies on automated matching of information reported through AIS, TIS, Form 26AS and third-party reporting. Therefore, postponing the filing does not postpone the Department’s visibility into a taxpayer’s financial transactions. In fact, filing late often means responding to compliance requirements under tighter timelines.

“Taxpayers should also remember that a delayed filing could postpone refund processing, particularly where the return requires additional verification or contains mismatches. With the tax administration becoming increasingly technology-driven, filing on time remains the most effective way to minimise future compliance issues,” Goel said.

Step 1. Visit the Income Tax e-Filing portal.

Step 2. Log in using your PAN/Aadhaar.

Step 3. Click ‘File Income Tax Return’.

Step 4. Select Assessment Year 2026-27.

Step 5. Choose the correct ITR form.

Step 6. Verify the pre-filled information.

Step 7. Report income, deductions and taxes paid.

Step 8. Submit the return.

Step 9. Complete e-verification.

As of now, there is no official notification from the income tax department extending today’s ITR filing deadline. Taxpayers are advised not to rely on social media rumours and should complete their return before the filing window closes. We will update this live blog immediately if any official announcement is made.

The July 31 deadline primarily applies to taxpayers filing ITR-1 (Sahaj) and ITR-2. It also covers certain non-audit taxpayers filing ITR-5 and ITR-7, such as eligible societies, firms not carrying on business, and specified trusts or institutions that are not required to have their accounts audited. Taxpayers required to file ITR-3, ITR-4 or audit cases generally have later due dates under the Income Tax Act.

Today, July 31, 2026, marks the last date for filing Income Tax Returns for eligible taxpayers, including those filing ITR-1, ITR-2 and certain non-audit ITR-5 and ITR-7 returns. Taxpayers who are covered under today’s deadline should complete the filing process and e-verify their returns before the due date to avoid late filing consequences.