As the ITR filing deadline approaches, one question continues to crop up: Is the last date July 31 or August 31? The answer depends on the taxpayer's category and whether an audit is applicable.
Who Needs To File By July 31 And Who Has Until Aug. 31?
For salaried employees, pensioners, and individuals earning income solely through capital gains or house property, the statutory deadline remains July 31.
These taxpayers generally utilise ITR-1 or ITR-2 forms, which do not involve complex business accounts. Tax authorities advise this segment of the population to finalise their submissions promptly to avoid last-minute portal congestion.
On the other hand, individuals and Hindu Undivided Families (HUFs) deriving income from a trade, business, or profession whose accounts do not require a formal tax audit are granted time until Aug. 31. This includes small enterprises, self-employed professionals, consultants and freelancers and those required to file ITR-3 or ITR-4.
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How To Know Your ITR Due Date
This extended timeframe applies to non-audit business cases filing under ITR-3 or ITR-4 forms, as well as partners in non-audit firms.
The additional month offers sole proprietors and self-employed professionals adequate leeway to organise their financial records and reconcile income figures.
Those who require an audit under the provisions of the Income Tax Act face a separate filing deadline of Oct. 31. Those subject to transfer pricing documentation requirements must complete their filings by Nov. 30.
Taxpayers uncertain about their income tax return deadline should first determine whether they earn income from a business or profession. That distinction decides the applicable due date.
Individuals and Hindu Undivided Families (HUFs) without business or professional income must file by July 31. Those with business or professional income, provided they are not liable for a tax audit, have until Aug. 31.
Missing the applicable deadline incurs financial consequences under tax regulations. Delayed filings trigger interest charges on unpaid taxes along with a late filing fee. Taxpayers who fail to submit their returns within the designated timeframe forfeit the opportunity to carry forward certain losses against future gains.
ALSO READ: Already Filed Your ITR? Review It Before July 31 To Avoid Notices - Five Key Checks
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