ITR Filing AY 2026-27: New August 31 Deadline for Small Businesses and Professionals
For the first time, ITR deadlines are staggered by form type — salaried filers stay at July 31, non-audit business and professional filers get until August 31, 2026. Here is what changed under the Finance Act, 2026 and what to do.
- ITR deadlines are now staggered: salaried ITR-1/ITR-2 stay at 31 July 2026, while non-audit business ITR-3/ITR-4 move to 31 August 2026.
- This is a permanent change under the Finance Act, 2026 amending Section 139(1), applying every year from AY 2026-27 — not a one-time extension.
- AY 2026-27 is the last filing season governed by the old Income-tax Act, 1961 before the Income-tax Act, 2025 applies from FY 2026-27.
- A further extension looks unlikely: all forms were notified on 30 March 2026 and over 56 lakh returns had already been filed by 21 June.
For the first time, India's income tax return deadlines are staggered by who you are. Salaried filers keep the old 31 July date, but non-audit business and professional filers now get until 31 August. The change was announced in the Union Budget 2026 and made permanent by the Finance Act, 2026 (Business Today, 2026). If you run a small business, that extra month is yours — but only the filing date moved, not the tax payment date.
What changed in the ITR deadline for AY 2026-27?
The Budget 2026 split the single 31 July deadline by form type. Finance Minister Nirmala Sitharaman said individuals filing ITR-1 and ITR-2 continue to file by 31 July, and for non-audit business cases or trusts, 31 August is the due date (Business Today, 2026). Audit cases are due 31 October 2026, and transfer-pricing cases 30 November 2026 (ClearTax, 2026).
This is not a one-off relief. The Finance Act, 2026 amended Section 139(1), so the staggered structure repeats every assessment year. If you file ITR-3 (business income with books) or ITR-4 (presumptive under 44AD/44ADA) and are not subject to a tax audit, your default deadline is now 31 August.
Does the August deadline also push my tax payment date?
No — and this is the trap. The extension covers only filing the return, not paying the tax. Any tax due beyond your advance-tax schedule still attracts interest under Sections 234B and 234C from the original dates. If you wait until late August to file but owe self-assessment tax, interest keeps accruing through those weeks. Pay the tax on time, then use the extra window for the paperwork.
Will the deadline be extended again this year?
It looks unlikely. CBDT notified all ITR forms (ITR-1 to ITR-7) on 30 March 2026 and released the filing utilities early, removing the glitch-driven delays that forced extensions in earlier years. More than 56 lakh returns were filed and over 53 lakh verified by 21 June 2026 (Upstox, citing Income Tax Department data, 2026). Plan to file on the statutory date, not on a hoped-for extension.
What else is new for small business filers this year?
- ITR-1 eligibility widened: you can now report income from up to two house properties in ITR-1, instead of being forced into the more complex ITR-2.
- Revised return window extended: the revised-return deadline moved to 31 March 2027 under the Finance Act, 2026.
- Belated returns: still allowed until 31 December 2026, with a Section 234F late fee of ₹5,000 (₹1,000 if total income is ≤ ₹5 lakh) plus Section 234A interest (ClearTax, 2026).
If you have been unsure whether you even need professional help, see our guide on whether you can file ITR without a CA, and the broader best way to file taxes in India.
Which Income Tax Act governs this return?
Income earned in FY 2025-26 is still assessed under the old Income-tax Act, 1961 in AY 2026-27, so this year's rules are familiar (Income Tax Department, 2026). The new Income-tax Act, 2025 took effect 1 April 2026 but applies only from FY 2026-27 onwards — making this the final season under the 1961 Act. Get your reconciliations clean now, because next year the reference law changes.
Frequently Asked Questions
My business turnover is under the audit limit. When is my ITR due?
If you file ITR-3 or ITR-4 and are not subject to a tax audit under Section 44AB, your due date is 31 August 2026 — a month later than the 31 July deadline for salaried ITR-1 and ITR-2 filers. This is a permanent change introduced by the Finance Act, 2026, not a one-time extension.
Does the August deadline extend my tax payment date too?
No. The extension covers only filing the return. Any tax due beyond the advance-tax schedule still attracts interest under Sections 234B and 234C from the original dates. Pay your self-assessment tax on time even if you file the return in late August, to avoid accumulating interest charges.
Will the ITR deadline be extended again this year?
An extension looks unlikely. CBDT notified all ITR forms on 30 March 2026 and released filing utilities early, removing the glitch-driven delays that forced extensions before. With 56 lakh+ returns already filed by 21 June 2026, the advice is to file early rather than wait for an extension that may not come.
Which Income Tax Act applies to my AY 2026-27 return?
The old Income-tax Act, 1961 still governs income earned in FY 2025-26, so this filing follows familiar rules. The new Income-tax Act, 2025 took effect 1 April 2026 but applies only from FY 2026-27, making AY 2026-27 the last filing season under the 1961 Act.
What should you do next?
Confirm which form applies to you, pay any self-assessment tax now to stop interest, then use the August window for clean reconciliation. For the wider month's developments, read our June 2026 Indian SMB news roundup. For hands-on filing, see Bizeract business ITR filing and finance and compliance services.
What to verify before acting on ITR Filing AY 2026-27
Rules and platform behaviour change after an article is published. Confirm forms, due dates, AIS or Form 26AS data, regime rules, and filing instructions against the Income Tax Portal before you act on anything below, because the right answer depends on your entity, state, turnover, and current setup.
Going deeper: Business ITR Filing, ITR Filing (Salaried), and Bookkeeping Services.
Frequently asked questions
My business turnover is under the audit limit. When is my ITR due for AY 2026-27?
If you file ITR-3 or ITR-4 and are not subject to a tax audit under Section 44AB, your due date is August 31, 2026 — a month later than the July 31 deadline for salaried ITR-1 and ITR-2 filers. This is a permanent change introduced by the Finance Act, 2026.
Does the August 31 deadline also extend my tax payment date?
No. The extension only covers filing the return. Any tax due beyond the advance-tax schedule still attracts interest under Sections 234B and 234C from the original dates. Pay your self-assessment tax on time even if you file in August to avoid accumulating interest.
Will the ITR deadline be extended again this year?
An extension looks unlikely. CBDT notified all ITR forms on March 30, 2026 and released filing utilities early, removing the glitch-driven delays that forced extensions before. With over 56 lakh returns already filed by June 21, 2026, the advice is to file early.
Which Income Tax Act governs my AY 2026-27 return?
The old Income-tax Act, 1961 still governs income earned in FY 2025-26, so this filing follows familiar rules. The new Income-tax Act, 2025 took effect April 1, 2026 but applies only from FY 2026-27, making AY 2026-27 the last filing season under the 1961 Act.
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