Income Tax Department sets August 31 deadline for non-audit ITR filing

The Income Tax Department has reminded non-audit taxpayers, including small business owners, professionals, freelancers, and consultants, to file their Income Tax Returns (ITR) by the August 31 deadline for the 2026-27 assessment year.

Taxpayers must choose between ITR-3 and ITR-4 forms based on their specific income types and eligibility. ITR-3 is required for those with business or professional income who do not qualify for the presumptive taxation scheme or have complex requirements like foreign assets or significant capital gains. ITR-4 is a simplified option for those meeting specific turnover limits and opting for presumptive taxation.

Failure to file by the deadline may result in late fees ranging from ₹1,000 to ₹10,000, interest on unpaid taxes, and the loss of benefits such as carrying forward business losses or claiming tax refunds. Experts advise taxpayers to reconcile their filings with the Annual Information Statement (AIS), Form 26AS, and GST records to avoid receiving tax demand notices due to discrepancies.