Aug. 31, is the due date for filing Income Tax Returns (ITRs) for AY 2026-27 for eligible taxpayers with business or professional income who are not subject to audit, with no further extension announced by the government. While more than seven crore have filed their ITR on time, those who are yet to do so should complete the process and ensure that the return is also verified.
Taxpayers filing ITR-3 or ITR-4 should ensure they select the correct form, report income accurately and reconcile financial information with the Annual Information Statement (AIS) to avoid late filing consequences.
ALSO READ: ITR Filing Deadline 2026: Check If You Need To File By Aug. 31, Oct. 31 Or Nov. 30
Missing the deadline can result in late filing fees, interest on outstanding tax, delays in receiving refunds and the loss of certain tax benefits.
Over 7 Crore ITRs have already been filed for A.Y. 2026-27!
— Income Tax India (@IncomeTaxIndia) August 28, 2026
31 August 2026 is the due date for filing ITRs for AY 2026–27 for taxpayers with business or professional income who are not subject to audit.
Don't wait till the last minute. File your (non-audit) business or… pic.twitter.com/J231yOuJ4s
What Happens If You Miss The ITR Filing Deadline?
Missing the Aug. 31 deadline does not prevent a taxpayer from filing a return altogether. A belated return for AY 2026-27 can be filed until Dec. 31, 2026, or before the completion of assessment, whichever is earlier.
However, doing so can result in the loss of certain tax benefits that may otherwise have been available if the return had been filed within the prescribed deadline. Also, late filing may delay the processing of refunds and lead to additional compliance requirements.
Under Section 234F, a late filing fee of Rs 5,000 can apply if the taxpayer's total income exceeds Rs 5 lakh. If total income does not exceed Rs 5 lakh, the late filing fee is capped at Rs 1,000.
Taxpayers with unpaid taxes will also have to pay interest under Section 234A at the rate of 1% per month or part of a month on the outstanding amount.
Filing late can affect the ability to carry forward certain losses, including eligible business or capital losses, which may otherwise be adjusted against income in future years.
Individuals and other eligible taxpayers with business or professional income who want to opt out of the default new tax regime and choose the old tax regime must file their return by the due date. Filing after the applicable due date does not make the taxpayer eligible for the old regime for that return.
Common ITR Filing Mistakes To Avoid While Filing ITR
Choosing The Wrong ITR Form
Choosing the correct ITR form is one of the first steps in filing a return. ITR-3 is generally applicable to individuals and HUFs having income from business or profession. They are not eligible to file ITR-1, ITR-2 or ITR-4.
ITR-4, or Sugam, can be used by eligible resident individuals, HUFs and firms other than LLPs where business or professional income satisfies the conditions of the presumptive taxation scheme under Sections 44AD, 44ADA or 44AE.
Assuming Every Freelancer Can Use Section 44ADA
Freelancers should not automatically assume that they qualify for presumptive taxation under Section 44ADA. The provision applies to specified professions, including legal, medical, engineering, architectural, accountancy, technical consultancy and interior decoration, among others. Eligibility depends on the nature of the profession and the conditions prescribed under the Income Tax Act.
For eligible professionals, Section 44ADA generally provides for presumptive income at 50% of gross receipts, subject to the applicable turnover or gross-receipt limits.
Section 44AD, meanwhile, applies to eligible businesses and is subject to separate conditions. It generally covers turnover up to Rs 2 crore, with the limit increasing to Rs 3 crore where cash receipts do not exceed 5% of total turnover. The presumptive profit rate is generally 8%, or 6% for eligible digital receipts. Certain businesses, including commission or brokerage and agency businesses, are excluded from Section 44AD.
Selecting The Wrong Tax Regime
For taxpayers with business or professional income, the new tax regime is the default. Those who are eligible and want to opt out and choose the old regime must file Form 10-IEA within the prescribed deadline. This switch can be made only once in a lifetime. If the form is filed after the return's due date, the taxpayer is not eligible to claim the old tax regime for that return.
Claiming Ineligible Expenses
Taxpayers should distinguish between genuine business expenses and personal expenditure. Only expenses incurred wholly and exclusively for business or profession should be claimed.
At the same time, self-employed individuals should maintain proper records and not overlook legitimate business expenses such as software subscriptions, professional fees, office costs, business-related internet expenses and depreciation on eligible work equipment.
Failing to reconcile income with AIS and Form 26AS
Taxpayers should also cross-check the income and TDS reported in the return against their Annual Information Statement (AIS), Form 26AS, invoices, books of accounts and bank transactions.
Differences can arise because of incorrect reporting by clients, timing differences or other data issues. Identifying such discrepancies before filing can help taxpayers avoid unnecessary compliance problems later.
Incorrectly Reporting Foreign Income
Freelancers and professionals earning money from overseas clients should consider the reporting requirements applicable to their residential status.
Depending on the taxpayer's circumstances, foreign income, foreign bank accounts and other foreign assets may have to be disclosed in the relevant schedules. Those claiming foreign tax credit may also need to comply with the prescribed requirements, including filing Form 67 where applicable.
Overlooking Tax Audit Requirements
People with business or professional income should determine whether their turnover, gross receipts or method of declaring income triggers a tax audit requirement.
For resident HUF, individuals and eligible businesses, the general Section 44AD turnover threshold is Rs 2 crore, increasing to Rs 3 crore where cash receipts do not exceed 5% of total turnover. There is also a restriction on re-entering Section 44AD.
Once an assesse declares profit under Section 44AD for an assessment year and does not do so for any of the five succeeding assessment years, the scheme becomes unavailable for the five assessment years following the year of default
ALSO READ: Filing ITR With GST Registration? Check Turnover, GST And ITR Form Before Submitting
For non-presumptive businesses, the general tax-audit threshold is Rs 1 crore, but it can increase to Rs 10 crore where cash receipts and cash payments do not exceed the prescribed 5% condition, subject to the other requirements of the law.
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