ITR filing due date AY 2026-27: What happens if you miss the deadline? Penalties, refund delays and more

The consequences depend on the taxpayer’s category and the applicable due date. Those taxpayers covered by the 31 July due date can furnish a belated return under Section 139(4) within the prescribed statutory time limit, although certain penalties and restrictions may apply. 

Taxpayers should note that the July 31 ITR filing deadline does not apply to everyone. It is primarily meant for taxpayers who are not required to get their accounts audited, including most individuals filing ITR-1 or ITR-2.

A resident individual can file ITR-1 (Sahaj) if their total income during the financial year does not exceed Rs 50 lakh and consists of income from salary or pension, one house property, family pension, agricultural income up to Rs 5,000, long-term capital gains under Section 112A up to Rs 1.25 lakh, and income from other sources such as interest from savings accounts, bank deposits, income tax refunds and enhanced compensation.

Individuals (residents or non-residents) and Hindu Undivided Families (HUFs) who receive income other than that which is taxable under the head “Profits and Gains of Business or Profession” can use the ITR-2 form.

Income under the head “Salaries” or “Pension,” income from house property, including income from more than two properties, income chargeable under the head “Capital Gains,” whether short-term or long-term, income from other sources, including winnings from lotteries, racehorses, betting, gambling, etc., and agricultural income exceeding Rs 5,000, can all be filed in the ITR-2 form. 

Unless the government announces an extension, as it did last year, taxpayers filing their ITR using the aforementioned two forms must do so by July 31st. Taxpayers who miss this deadline will be charged late fees. According to the Income Tax Department, if a taxpayer does not file their income tax return by the deadline, they may be required by Section 234F to file a belated return by December 31, 2026, with a late filing fee. 

If an Income Tax Return (ITR) is filed after the deadline, the penalty is Rs. 5,000 for total income over Rs. 5 lakh and Rs. 1,000 for total income under Rs. 5 lakh.

“However, delayed filing may attract a late filing fee under Section 234F, interest under Section 234A, and increased interest exposure under Section 234B, where tax remains unpaid, and may also restrict the carry forward of specified business and capital losses. Apart from statutory consequences, delayed filing may postpone refund processing and significantly reduce the opportunity to identify and rectify errors through a revised return,” said Akhil Chandna, Partner, Global People Solutions Leader, Grant Thornton Bharat. 

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.

Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. Tax laws and regimes are subject to frequent changes by the government. Readers should verify details with official Income Tax Department notifications or consult a Chartered Accountant before making any financial decisions.    

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