Daijiworld Media Network - New Delhi

New Delhi, Aug 31: Taxpayers with business or professional income who are not subject to tax audit must file their Income Tax Returns (ITRs) for assessment year 2026-27 by Monday, the Income Tax Department said, urging those who have not yet filed to complete and verify their returns.

“Over 7 Crore ITRs have already been filed for AY 2026-27! August 31, 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,” the department said in a post on X.

“Don’t wait till the last minute. File your (non-audit) business or professional income ITR today,” it added.

Taxpayers filing ITR-3 or ITR-4 should select the appropriate form, report their income accurately and reconcile their financial information with the Annual Information Statement (AIS) to avoid consequences arising from late filing.

ITR-3 is generally applicable to individuals and Hindu Undivided Families (HUFs) earning income from business or profession who are not eligible to file ITR-1, ITR-2 or ITR-4.

ITR-4, also known as Sugam, can be filed by eligible resident individuals, HUFs and firms other than Limited Liability Partnerships (LLPs) whose business or professional income meets the conditions of the presumptive taxation scheme under Sections 44AD, 44ADA or 44AE.

Missing the deadline can result in late filing fees, interest on outstanding tax, delays in refunds and loss of certain tax benefits.

A belated return for AY 2026-27 can be filed until December 31, 2026, or before completion of assessment, whichever is earlier. However, late filing can result in taxpayers losing the ability to carry forward certain losses, including eligible business or capital losses.

Under Section 234F, a late filing fee of Rs 5,000 can be levied if the taxpayer’s total income exceeds Rs 5 lakh. Where total income does not exceed Rs 5 lakh, the late filing fee is capped at Rs 1,000.

Taxpayers with unpaid taxes must also pay interest under Section 234A at the rate of 1 per cent per month or part of a month on the outstanding tax amount.

Individuals and other eligible taxpayers with business or professional income who wish to opt out of the default new tax regime and choose the old tax regime must also file their returns by the prescribed due date.