Taxpayers earning income from a business or profession, but not required to get their accounts audited, have until August 31 to file their income tax returns for Assessment Year 2026-27.
With the deadline nearing, getting the basics right, from choosing the correct ITR form to checking turnover and GST details, can save taxpayers from errors that could render their return invalid.
ITR Form To Use
For taxpayers with business income, the Goods and Services Tax (GST) registration does not determine the ITR form that must be filled. ITR-3 can be used by taxpayers who maintain account books regularly and declare their professional or business income on an actual basis.
Eligible resident individuals and Hindu Undivided Families (HUF) who opted for the presumptive taxation scheme under Sections 44ADA, 44DA or 44AE can use ITR-4.
ALSO READ: ITR Filing Deadline 2026: Check If You Need To File By Aug. 31, Oct. 31 Or Nov. 30
GST Turnover
Taxpayers must match the actual turnover reported in their GSTR-3B and GSTR-1 form with the figure in their financial statements or ITR. GSTR-9 or GSTR-9C can be used to reconcile the figures in the ITR and the other forms.
GST should be excluded from the turnover. For example, in case a taxpayer is eligible for 44AD presumptive taxation, their income should be calculated on the actual sales turnover, with the GST component excluded.
Mistakes To Avoid While Filing ITR
Taxpayers need to reconcile their Annual Income Statement (AIS) data with the turnover to avoid any errors in filing. Another mistake many taxpayers make is using presumptive taxation when they are not eligible for it.
Missing the deadline for carrying forward losses can also impact the tax liability.
Personal expenses should not be categorised as professional expenses by freelancers.
What Happens If ITR Is Not Filed By Aug. 31?
For non-audit cases, taxpayers can still file their ITR by Dec. 31, 2026. However, missing the original ITR deadline may result in a late filing fee as well as interest on unpaid tax.
Taxpayers with total income up to Rs 5 lakh may need to pay Rs 1,000 as a late filing fee. If their income is above Rs 5 lakh, the fee is Rs 5,000.
If any tax is unpaid, taxpayers may need to pay interest of 1% per month, or part of a month, under Section 234A.
ALSO READ: Forgot To Report Foreign Income? Updated ITR Or FAST-DS — Which Is Better?
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