What Happens if You Miss the July 31 ITR Filing Deadline?
Taxpayers have five days left to file Income Tax Returns before the July 31 deadline. Experts advise against waiting for an extension, warning of late fees of up to INR 5,000, interest on unpaid tax and possible loss of the old tax regime option. Here's who must file, key checks to complete and what happens if you miss the due date.
Taxpayers across India have just two days left to file their Income Tax Returns (ITRs) before the July 31 deadline for eligible non-audit cases. Tax experts are advising taxpayers not to wait until the last minute, warning that an extension appears unlikely this year and that missing the deadline could result in penalties, interest and restrictions on choosing the old tax regime.
The deadline applies primarily to salaried employees, pensioners and investors who are not required to get their accounts audited. This year's filing season is also significant as it marks the transition to the new Income Tax Act, 2025, although returns for Assessment Year (AY) 2026–27 will continue to be governed by the Income Tax Act, 1961. ITR Deadline Extension: Why Waiting for an Income Tax Return Filing Extension Could Cost You More.
Who Must File By July 31?
The July 31 deadline applies to:
- Salaried employees
- Pensioners
- Investors
- Other taxpayers not requiring an audit
Meanwhile, taxpayers with business or professional income in non-audit cases, along with partners of non-audit firms, have until August 31 to file their returns, a departure from previous years when all non-audit taxpayers shared the same July 31 deadline. How To Register and Log In on the Income Tax Portal?
Why This Filing Season Is Different
Although the Income Tax Act, 2025 came into effect on April 1, 2026, taxpayers filing returns for Assessment Year 2026–27 are reporting income earned during Financial Year 2025–26, which ended before the new legislation took effect.
As a result, this year's returns will still be filed entirely under the Income Tax Act, 1961, making it the final filing season under the decades-old law. Returns for subsequent assessment years will be governed by the new Act.
Checks Experts Say You Should Complete Before Filing
Tax professionals recommend verifying all information before submitting an ITR rather than relying solely on pre-filled data available on the Income Tax Department's portal.
Experts advise taxpayers to:
- Reconcile Form 16, Annual Information Statement (AIS) and Form 26AS
- Verify all pre-filled information against personal financial records
- Report every source of income, including salary, dividends, bank interest and capital gains from mutual funds
- Correctly disclose income from jointly owned assets, including rental property, based on each owner's share
Those who changed jobs during the financial year should pay particular attention if they have received two Form 16s, as duplicate deductions or reporting mismatches could trigger notices from the Income Tax Department.
What Happens If You Miss The Deadline?
Missing the applicable due date can have financial consequences.
Under Section 234F, taxpayers may have to pay a late filing fee of up to ₹5,000, along with interest on any unpaid tax.
Tax experts also point out an important consequence for taxpayers wishing to use the old tax regime. Those who miss the original filing deadline generally lose the option to choose the old regime for that assessment year and will instead be taxed under the new regime.
Taxpayers with business or professional income who want to opt out of the new tax regime must submit Form 10-IEA on or before the applicable due date.
Once a taxpayer switches back to the new regime after opting out, current rules allow them to make that switch only once during their lifetime.
How To Complete Your ITR Filing
To file an Income Tax Return, taxpayers should:
- Log in to the Income Tax e-filing portal using their PAN
- Register if filing for the first time
- Verify identity using Aadhaar OTP or net banking
- Select Assessment Year 2026–27
- Choose the appropriate ITR form based on income sources
- Enter income, deductions and personal details
- Submit the return
Experts also remind taxpayers to complete e-verification within 30 days of filing, as returns are processed only after successful verification.
Why Experts Recommend Filing Early
Tax professionals say filing well before the deadline gives taxpayers time to identify discrepancies, correct errors and avoid technical issues caused by heavy traffic on the e-filing portal in the final days.
With an extension considered unlikely this year, taxpayers are being encouraged to complete the filing process before July 31 to avoid penalties and ensure they remain eligible for the tax regime of their choice, where applicable.
(The above story first appeared on LatestLY on Jul 29, 2026 12:44 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
