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ITR Filing 2026: The pace of Income Tax Return (ITR) filing has picked up. According to the Income Tax Department, over 1.7 crore taxpayers have already filed their ITRs for Assessment Year 2026-27 (covering income from the 2025-26 financial year). More than 10 lakh returns were filed on Friday alone.

The department has also urged people via the social media platform X to file their returns on time to avoid last-minute hassles.

ITR Deadline is July 31

The deadline for filing ITR-1 (Sahaj) and ITR-2 for income earned in the 2025-26 financial year is July 31, 2026. If your accounts do not require an audit, you must file your return by this date.

Who can file ITR-1?

ITR-1, also known as the 'Sahaj' form, is primarily for individuals. This includes those who:

Have an annual income of up to ₹50 lakh.
Earn income primarily from a salary.
Have income from a single house property.
Have agricultural income of up to ₹5,000.
Who files ITR-2?

ITR-2 is intended for individual taxpayers and Hindu Undivided Families (HUFs) who do not have income from a business or profession but earn income such as capital gains.

What happens if you miss the July 31 deadline?

If you do not file your ITR by the stipulated deadline, you may face several issues:

1. Late Fee: Under Section 234F of the Income Tax Act, a late fee of up to ₹5,000 may be levied for filing a belated ITR. If your total income is up to ₹5 lakh, this fee is capped at ₹1,000.

2. Interest: If you have outstanding tax dues, you may be liable to pay interest at the rate of 1% per month (or part thereof) under Section 234A.

3. Delay in refunds: If you are entitled to an income tax refund, filing your ITR late will delay its processing. Consequently, it may take longer for you to receive your money.

4. Loss of tax benefits: Filing a return late can result in the loss of certain tax benefits, such as the ability to carry forward losses to subsequent years.

Do not wait until the last minute

Traffic on the portal surges significantly as the deadline approaches each year, which can lead to technical glitches. Therefore, it is advisable to gather the necessary documents and file your ITR well in time. This helps avoid late fees, interest charges, and other hassles.

Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.