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By: Subha Lakshmi
With the July 31 deadline for filing Income Tax Returns (ITRs) for Assessment Year (AY) 2026-27 approaching, many taxpayers are wondering if the government will extend the deadline this year. Last year, the due date was extended after delays in releasing ITR forms and technical issues on the Income Tax Department’s e-filing portal. However, experts believe the chances of another extension this year are very low.
Why is an extension unlikely?
Unlike last year, the Income Tax Department released the ITR forms on time and made the filing utilities available well in advance. The e-filing portal has also remained stable, with no major technical glitches reported so far.
According to Adhil Shetty, CEO of BankBazaar, taxpayers should not wait expecting the government to announce an extension. He said the Income Tax Department has extended deadlines in the past only under exceptional circumstances, such as widespread technical issues or administrative reasons. Unless an official announcement is made, taxpayers should consider July 31 as the final deadline.
Another reason experts believe an extension is unlikely is the staggered filing schedule introduced this year. Instead of giving all taxpayers the same deadline, the government has divided the due dates based on different categories.
The filing deadlines are:
- July 31, 2026: ITR-1 and ITR-2 for salaried individuals and other non-audit taxpayers.
- August 31, 2026: ITR-3 and ITR-4 for non-audit business owners and professionals.
- October 31, 2026: Taxpayers whose accounts require an audit.
This staggered system helps reduce the pressure on the portal and allows taxpayers to file their returns more smoothly.
Why should you not wait?
Many taxpayers delay filing their returns hoping that the deadline will be extended. However, waiting for an announcement that may never come could create unnecessary problems.
Experts say filing early gives taxpayers enough time to correct any mismatch in Form 26AS, the Annual Information Statement (AIS) and the Taxpayer Information Summary (TIS). It also reduces the chances of delays in processing refunds.
If the deadline is missed, taxpayers may have to pay a late filing fee under Section 234F of the Income Tax Act. Those with an annual income of up to ₹5 lakh may have to pay a penalty of up to ₹1,000, while taxpayers earning above ₹5 lakh may have to pay up to ₹5,000. Those with pending tax dues may also have to pay 1% interest per month on the unpaid amount.
Apart from penalties, taxpayers filing a belated return may not be able to carry forward certain eligible losses to future years, depending on the provisions of the Income Tax Act.
File before the deadline
Although many taxpayers are expecting another extension like last year, experts say the circumstances are different this time. Since the forms were released on time, the portal has remained stable and the filing deadlines have been staggered, there is currently little reason for the government to extend the due date.
Unless an unexpected technical issue arises or the government makes an official announcement, taxpayers are advised to complete their ITR filing before the deadline to avoid penalties, delayed refunds and last-minute stress.
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