Taxpayers, listen up! You have very little time left to file your returns. If you delay, you'll not only face a penalty but your tax refund could also get stuck.
Taxpayers have just a few days left to file their returns for the 2026-27 Assessment Year. The final deadline is July 31, 2026, and the Income Tax Department is urging those who haven't filed yet to do it immediately. Out of more than 14 crore registered users, only around 3.15 crore have filed their returns as of July 21. To avoid the last-minute rush and potential website crashes, it's smart to complete your filing well before the deadline.
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Income Tax Return
This year, you must mention details of all your active bank accounts when filing your ITR. This includes savings, current, accounts with credit/overdraft facilities, and even NRE/NRO accounts. If the IT department discovers you've hidden an active account, they can slap a penalty of up to ₹10,000 for each undeclared account. So, make sure you provide complete and accurate details. Taking a gold loan? These 5 mistakes could get your gold auctioned!
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Refund Amount
If you're expecting a tax refund, you must pre-validate your bank account on the Income Tax portal. This is crucial. If there's a technical issue with your primary account, the department can send the refund to another validated account. However, if your bank details are incomplete or not verified, your refund will face unnecessary delays. To avoid these problems, it's best to verify your bank details in advance.
For those who can't file their ITR by July 31, there's still a chance. You can file a belated return under Section 139(4) of the Income Tax Act, 1961. But, you'll have to pay a late fee. If your annual income is over ₹5 lakh, the penalty can be up to ₹5,000. If your income is ₹5 lakh or less, the late fee is ₹1,000. To avoid this extra cost, filing on time is the best option.
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New Income Tax Act
Even though the new Income Tax Act, 2025, came into effect on April 1, 2026, the current ITR filing is for income earned between April 1, 2025, and March 31, 2026. This means all calculations and procedures for this assessment year follow the old Income Tax Act, 1961. The rules of the new act will fully apply to the ITR you file next year for income earned in the 2026-27 financial year. So, taxpayers should remember that the old rules apply for this year's filing.
