The income tax return filing season for Financial Year 2025-26 (Assessment Year 2026-27) has officially started, bringing an important update for crores of taxpayers across India. The Income Tax Department has released both online and offline utilities for ITR-1 and ITR-4 forms, allowing eligible taxpayers to begin filing returns through the official e-filing portal.

Salaried employees, pensioners, freelancers, and small business owners can now start submitting their returns. However, taxpayers who fail to file ITR within the prescribed deadline may face penalties, interest charges, and delays in refunds.

ITR Filing Has Started for AY 2026-27

The filing process for Assessment Year 2026-27 is now active, and taxpayers can begin preparing documents and uploading their returns online.

Experts advise taxpayers not to delay filing unnecessarily because:

• Late filing may attract penalties
• Refund processing can get delayed
• Certain tax benefits may be lost
• Additional interest may apply on pending tax dues

Last Date for Salaried Employees and Non-Audit Taxpayers

For individuals whose accounts do not require tax audit, the last date to file ITR is:

• July 31, 2026

This deadline applies to:

• Salaried employees
• Pensioners
• Hindu Undivided Families (HUFs)
• Associations of Persons (AOPs)
• Bodies of Individuals (BOIs)

These taxpayers are expected to complete filing before the July-end deadline to avoid penalties.

Deadline for Freelancers and Small Businesses

Freelancers, professionals, and small business owners using the presumptive taxation scheme can also generally file returns till July 31, 2026, if audit is not mandatory.

This includes taxpayers covered under:

• Section 44AD
• Section 44ADA
• Section 44AE

These provisions are commonly used by:

• Consultants
• Doctors
• Freelancers
• Transport operators
• Small traders
• Independent professionals

Deadline for Audit Cases

Businesses and firms whose accounts require mandatory tax audit receive additional time for ITR filing.

For audit-related cases, the deadline is:

• October 31, 2026

This category typically includes:

• Companies
• Partnership firms
• Businesses crossing audit thresholds
• Taxpayers covered under compulsory audit provisions

Last Date for Transfer Pricing Cases

Companies involved in international or specified domestic transactions requiring transfer pricing reports have the longest filing window.

Their ITR filing deadline is:

• November 30, 2026

These cases usually involve:

• Multinational companies
• Cross-border business transactions
• Related-party dealings
• Transfer pricing compliance requirements

Penalty for Late ITR Filing

Taxpayers missing the prescribed due date may have to pay penalties under Section 234F of the Income Tax Act.

Late Filing Fee

• Maximum penalty up to ₹5,000
• If total income is below ₹5 lakh, maximum penalty is restricted to ₹1,000

Additional Interest

Under Section 234A:

• Interest at 1% per month may apply on outstanding tax dues from the due date until payment.

Major Disadvantages of Filing ITR Late

Apart from penalties, delayed filing can create several other problems.

Taxpayers may face:

• Delay in tax refunds
• Additional interest burden
• Difficulty carrying forward certain losses
• Extra compliance complications later

Financial experts therefore recommend early filing wherever possible.

What Is Belated ITR?

If a taxpayer misses the original filing deadline, they can still file a Belated Return later.

For AY 2026-27:

• Belated or revised returns can generally be filed till March 31, 2027

However, penalties and interest may continue to apply depending on the delay and tax liability.

What Is Updated ITR (ITR-U)?

The Updated Return facility, known as ITR-U, allows taxpayers to:

• Correct mistakes in previously filed returns
• Declare missed income
• Update tax details voluntarily

Under current rules:

• Updated returns can be filed within 48 months from the end of the relevant assessment year

However, additional tax payments and conditions under Section 139(8A) apply while filing updated returns.

Experts Advise Waiting for Form 16

Although ITR filing utilities are already available, tax experts are advising salaried individuals to wait until receiving their Form 16 before filing returns.

This helps taxpayers:

• Avoid data mismatch errors
• Reduce chances of filing incorrect information
• Prevent the need for revised returns later

Experts also recommend verifying:

• AIS/TIS data
• Bank interest entries
• Deduction claims
• PAN-Aadhaar linkage
• Salary details

before submitting the final return.

Early Filing Can Reduce Stress

With the filing season now underway, taxpayers are expected to start gathering:

• Salary slips
• Form 16
• Investment proofs
• Bank statements
• Capital gains records

Filing early not only helps avoid penalties but also ensures smoother processing of refunds and fewer last-minute technical issues on the tax portal.