Taxpayers who earn business or professional income and do not require a tax audit must file their Income Tax Returns (ITRs) for assessment year (AY) 2026–27 by Monday, August 31. The Income Tax Department has urged taxpayers who have not yet filed their returns to complete and verify them before the deadline.

“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 Income Tax Department said in a post on X.

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

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 errors and late-filing consequences.

Individuals and Hindu Undivided Families (HUFs) who earn income from a business or profession generally file ITR-3 if they do not qualify to file ITR-1, ITR-2 or ITR-4.

Eligible resident individuals, HUFs and firms other than Limited Liability Partnerships (LLPs) can file ITR-4, also known as Sugam, when their business or professional income meets the conditions of the presumptive taxation schemes under Sections 44AD, 44ADA or 44AE.

Missing the deadline can trigger late-filing fees and interest on outstanding tax. It can also delay refunds and result in the loss of certain tax benefits.

Taxpayers can file a belated return for AY 2026–27 until December 31, 2026, or before the completion of assessment, whichever comes earlier. However, late filing can prevent taxpayers from carrying forward certain losses, including eligible business or capital losses.

Under Section 234F, taxpayers whose total income exceeds Rs 5 lakh can incur a late-filing fee of Rs 5,000. For taxpayers whose total income does not exceed Rs 5 lakh, the late-filing fee remains capped at Rs 1,000.

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

Individuals and other eligible taxpayers who earn business or professional income and want to opt out of the default new tax regime in favour of the old tax regime must also file their returns by the applicable due date.