Income tax filing date extension 2026 LIVE: Deadline ends soon; check filing steps, different ITR forms, other updates

In case you end up filing an incorrect ITR form, the income tax department may treat the return as defective under Section 139(9) and issue a notice requiring correction within a specified time.

In such cases, the return is not processed until the defects are rectified, which in turn may delay refunds and trigger additional verification if income details do not match departmental records.

ITR-2 becomes mandatory when a salaried taxpayer's financial profile is more complex than what can be reported in ITR-1. In most cases, a salaried taxpayer must file ITR-2 in the following situations:

• Income over ₹50 lakh in a financial year
• Income from more than two house properties
• Long-term capital gains under Section 112A of more than ₹1.25 lakh
• Short-term capital gains
• If you have income from any source outside India
• Deposit of amount or aggregates of amount exceeding ₹1 crore in one or more current accounts
• Incurred expenditure of an amount or aggregate of amount exceeding ₹2 lakhs for travel to a foreign country for yourself or any other person
• Incurred expenditure of amount or aggregate of amount exceeding ₹1 lakh on consumption of electricity

As July 31 ITR filing deadline draws near, taxpayers should not delay in filing their returns at the last minute, even though they may think that their tax liability is already known to them based on the TDS, said Siddharth Maurya, Managing director at Vibhavangal Anukulkara Pvt Ltd.

"Timely filing is not only a statutory obligation, but also a good financial habit, as it gives income proof in case of loans and visas and helps in various other financial transactions. It will also help them get the refund faster, avoiding any consequences of filing the return too late, which includes late filing charges, penalties, interest on taxes payable, restriction on carry forward of some losses, etc,"

They should compare their income with Form 26AS, AIS, and TIS, before sending in their returns, so as to avoid any discrepancy which may result in notices. The taxpayers should also see that if they are entitled to any deduction or exemption, then they claim it properly.

“The most important thing is not to hurry while filling the return. Slight delay in checking bank interest, capital gains, foreign assets or other sources of income may save them from trouble and avoid filing a revised return later on,” he added.

Before you proceed with filing your ITR today make sure you have:

1. A valid password.

2. Updated profile information.

3. Validated bank account.

4. Pan linked with Aadhaar (Applicable only in case of individuals)

Furthermore, make sure you don't panic and seek professional help in order to file your taxes properly within the stipulated time.

To check your refund status on income tax department's e-filing portal, follow the given steps:

Step1: Go to the income tax portal at eportal.incometax.gov.in/iec/foservices/

Step 2: Log in to your account with your user ID and password.

Step 3: Select the ‘e-File’ tab, click on 'Income Tax Returns' followed by ‘View Filed Returns’

Step 4: The status of your current and past income tax returns will be displayed on the screen.

Step 5: Select the 'View details,' to check the status of your income tax refund.

You can file your ITR online by simply clicking on this link: https://eportal.incometax.gov.in/iec/foservices/#/login

Step 1: Go to the income tax department's e-filing portal (https://www.incometax.gov.in/iec/foportal/) and log in with your user ID and password.

Step 2: Click on the e-proceedings tab, select the defective notice, and click on view

Step 3: On successful validation, the defective notice will be displayed

Step 4: Click on submit in the response column to submit a response

Step 5: Select the relevant ITR form from the drop down and upload the corrected XML file.​

1. Non-disclosure of foreign assets
2. Inconsistent information
3. Not verifying the return
4. Claiming fake deductions and exemptions
5. Non-disclosure of capital gains
   

The 31 July ITR filing deadline is just a day away, but filing the return alone does not complete the process.

An ITR becomes valid only after e-verification, which triggers its processing by the income tax department.

Section 10(14)(i) exempts certain special allowances or benefits granted by an employer wholly, necessarily and exclusively for the performance of official duties, and the exemption is available only to the extent the allowance is actually spent for that purpose.

“Merely claiming the exemption because it reduces tax liability, without satisfying the prescribed conditions, can result in the claim being disallowed,” said Nishant Shanker, tax controversy & dispute resolution expert at Navraj Global Advisors.

Further, if your claims are found to be inconsistent with the salary particulars reported in Form 16 or are unsupported by documentary evidence, it may attract scrutiny by the income tax authorities.

Last year, several taxpayers complained about glitches on the e-filing portal, prompting the government to extend the ITR deadline by a day. However, this time the e-filing portal is functioning smoothly so far, tax experts and individuals said on social media platforms.

“Looks like Income Tax India finally cracked the traffic problem! Even in the last few days of ITR filing, the portal is working smoothly,” an user said on X (formerly twitter).

Filing a tax return after the due date does not automatically attract interest under Section 234A. This interest applies only in cases when there is an outstanding tax liability on the taxpayer.

In such a situation, a simple interest of 1% per month or part of the month is charged on the unpaid tax amount. The interest is calculated from the applicable ITR due date for the relevant financial year until the date the return is actually filed.

As over 5.4 crore ITRs have already been filed, the income tax department has repeatedly asked taxpayers to reconcile and file their ITR-1 or ITR-2 for AY 2026-27 as soon as possible.

With the ongoing ITR filing season and the introduction of the ₹12 lakh tax relief under the new tax regime, there has been a growing perception among taxpayers that filing an ITR may no longer be necessary if no tax is payable, but that's not the case.

If your income is above the basic exemption limit, which is ₹4 lakh for all age groups covered under the new tax regime, you must file ITR.

“The introduction of the ₹12 lakh tax relief under the new tax regime has shifted the conversation from tax savings to financial discipline. A common misconception is that if no tax is payable, filing an Income Tax Return becomes optional. In reality, an ITR remains one of the strongest indicators of financial credibility. Whether you're applying for a loan, a credit card, or demonstrating income for future financial needs, a timely and accurate ITR strengthens your financial profile,” said Kumar Binit, CEO at airpay money.

If you gift money to your wife and she invests it in mutual funds, shares or other such assets, then the income generated from those investments may still be taxed in your hands under the clubbing provisions of the Income-tax Act.

However, the rule does not apply if your spouse is earning income through their own professional or technical expertise.

Last year a set of circumstances led to extension of deadline for filing ITR. This year, however, the government has highlighted improvements in the portal's infrastructure ahead of the filing deadline, including its ability to process up to 1 crore returns a day.

Experts thus believe the current filing trend does not support a case for extending the July 31 deadline.

Taxpayers who fail to file ITR within the original deadline can still file a belated return along with a late filing fee.

For those with an income above ₹5 lakh, the penalty is up to ₹5,000 and taxpayers with an income of up to ₹5 lakh, the maximum penalty for filing a belated ITR is ₹1,000.

Today, July 31 is the last date for certain taxpayers filing ITR-1 and ITR-2. Anyone whose income is above the basic exemption limit or undertook certain high value transactions in a financial year must file their return.