July 31 isn’t the ITR deadline for everyone: Here’s who gets more time

If you are a salaried employee, July 31, 2026 is the last date to file your income tax return (ITR) for Assessment Year (AY) 2026-27. But that deadline does not apply to every taxpayer.

Certain taxpayers with business or professional income whose accounts are not required to be audited have an additional month to file their returns, according to changes introduced through the Finance Act, 2026. Their due date is now August 31, 2026, giving them more time to finalise their books and complete the filing process.

The revised timeline has led to confusion among many taxpayers, especially freelancers, consultants and small business owners who are unsure whether they fall under the July 31 or August 31 deadline. Here’s a look at who gets the extension and what other filing deadlines remain unchanged.

The extended deadline applies to taxpayers who have business or professional income but are not required to undergo a tax audit.

This category generally includes:

Freelancers and consultants

Self-employed professionals

Small business owners and proprietors

Partners in firms that are not subject to tax audit

Eligible taxpayers opting for presumptive taxation under Sections 44AD, 44ADA or 44AE

These taxpayers usually file their returns using ITR-3 or ITR-4 (Sugam), depending on the nature of their income and the tax scheme they have opted for.

The additional month has been provided to allow such taxpayers sufficient time to close their books of account, reconcile financial records and complete return filing accurately.

The extension does not apply to salaried individuals, pensioners or taxpayers who do not have business or professional income.

If your income consists only of salary, pension, house property, capital gains, interest or other non-business income, your ITR filing deadline for AY 2026-27 continues to be July 31, 2026.

The same deadline also applies to most individuals filing ITR-1 or ITR-2, provided they do not have income from business or profession.

The Income Tax Department follows different due dates depending on the category of taxpayer.

Category	Due date for AY 2026-27
Salaried individuals, pensioners and other non-business taxpayers	July 31, 2026
Business or professional income not requiring tax audit	August 31, 2026
Companies and taxpayers whose accounts require tax audit	October 31, 2026
Taxpayers covered by transfer pricing provisions	November 30, 2026

Apart from these due dates, taxpayers who miss the applicable deadline may still be able to file a belated return by December 31, 2026, while a revised return can generally be filed until March 31, 2027, subject to the applicable provisions.

The change was announced as part of the Budget 2026 amendments to simplify return filing for non-audit business taxpayers.

Unlike salaried employees, business owners and professionals often need additional time to finalise their accounts, reconcile income and expenses, verify bank transactions and prepare financial statements before filing their returns. Extending the deadline by a month is aimed at easing this compliance burden without affecting taxpayers whose accounts are subject to audit.

Although the Income Tax Act, 2025 comes into effect from April 1, 2026 for the new tax year, returns for FY 2025-26 (AY 2026-27) will continue to be filed under the Income-tax Act, 1961, with procedural amendments introduced through the Finance Act, 2026 applying to the filing process.

Missing the applicable deadline can have financial consequences.

Taxpayers filing after their prescribed due date may have to pay a late filing fee under Section 234F, which can be Rs 1,000 or Rs 5,000, depending on total income. Interest may also apply on any unpaid tax liability.

In addition, late filing may result in the loss of certain tax benefits, including the ability to carry forward some losses to future years, where permitted under the Income-tax Act.

The applicable due date depends on the nature of your income, not just the ITR form you are filing.

For example, a salaried employee with no business income must generally file by July 31, whereas a freelancer or sole proprietor whose accounts are not liable for audit may have time until August 31.

If you have multiple sources of income or are unsure whether your business attracts audit provisions, it is advisable to verify your filing category carefully before relying on the extended deadline. Choosing the correct due date can help avoid unnecessary penalties and ensure timely compliance.