ITR Filing Update: The deadline for filing income tax returns for salaried individuals, individual taxpayers, and HUFs without tax audits was July 31, 2026, which has already passed. By that date, over 59 million tax returns had been submitted. Despite the deadline passing, many individuals have yet to file their returns. Those who still need to file can do so by December 31, 2026, but will incur costs and lose certain benefits. A fine will be imposed for late filing.
According to Section 139(4) of the Income Tax Act, tax returns can be submitted after the due date with a penalty. If the July 31, 2026, deadline was missed, individuals can file their returns by paying a late fee ranging from Rs 1,000 to Rs 5,000.
Who needs to pay a Rs 1,000 fine?
Individuals with an annual income below Rs 500,000 who haven’t filed their tax returns yet can do so by paying a penalty of Rs 1,000. Those earning less than the basic exemption limit can file without this penalty. Individuals with earnings exceeding Rs 5 lakh will incur a late fee of Rs 5,000 for filing their returns. Interest on the tax due will also accrue from August 1st until the filing date.
The department has clearly stated in its social media post that today is the last chance to file ITR-1 and ITR-2. By avoiding delays, you can not only avoid penalties and interest, but also turn this process into a “free hit,” meaning you can fulfill your tax obligations on time without incurring any additional losses. This message from the department is also important because filing returns after today may result in late fees and interest, as well as other tax compliance issues.
When will the late fee be charged?
Experts explains that this late fee applies to returns filed under the new Income Tax Act, 2025 (tax year 2026-27 and beyond). For assessment year (AY) 2026-27 and earlier, the fee prescribed under Section 234F of the old law will apply. A late fee of Rs 1,000 will be charged if your annual income is up to Rs 5 lakh. A late fee of Rs 5,000 will be charged if your annual income exceeds Rs 5 lakh. You can file your return by paying a penalty until December 31, 2026. This is the last date for filing belated returns.