July 31 ITR deadline FY26: Over 5 crore returns filed, Here's what taxpayers must check last minute

ITR filing 2026: With less than 48 hours remaining before the July 31 deadline for most individual taxpayers, the Income Tax Department on Wednesday said that more than 5 crore income tax returns (ITRs) have already been filed for Assessment Year (AY) 2026-27, urging eligible taxpayers to complete the process without waiting until the last minute.

In a post on X, the department said, "Over 5 crore ITRs have already been filed for A.Y. 2026-27," while asking taxpayers eligible to use ITR-1 (Sahaj) and ITR-2 to file their returns before the due date.

The July 31 deadline applies to salaried individuals, pensioners and other taxpayers whose accounts do not require an audit. Businesses and taxpayers whose accounts are subject to audit have time until August 31, in line with the revised tax calendar announced in the Union Budget 2026.

Choosing the correct ITR form

Tax experts say selecting the appropriate return form is the first step towards hassle-free filing.

ITR-1 (Sahaj) can be used by resident individuals with annual income of up to ₹50 lakh from salary, pension, one or two house properties (subject to conditions), and specified other sources. The form also allows long-term capital gains under Section 112A up to ₹1.25 lakh, family pension, and agricultural income up to ₹5,000.

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Eligible taxpayers can also use ITR-1 if they have spent over ₹2 lakh on foreign travel, paid electricity bills exceeding ₹1 lakh, had TDS of ₹25,000 or more (₹50,000 for senior citizens), or maintained deposits of ₹50 lakh or more in savings bank accounts, provided all other eligibility conditions are met.

However, taxpayers with more complex financial affairs must file ITR-2. This includes those with income above ₹50 lakh, capital gains from shares, mutual funds or property, foreign assets or overseas income, agricultural income exceeding ₹5,000, income from more than two house properties, unlisted equity holdings, directorships in companies, or those claiming foreign tax relief under Sections 90, 90A or 91.

Key checks before filing

Before submitting the return, taxpayers should verify personal details such as PAN, Aadhaar, date of birth, mobile number and email address. The refund bank account should be pre-validated, with the correct account number and IFSC code.

Experts advise reporting all sources of taxable income, including salary, savings account interest, fixed deposit interest, dividends, rental income, pension, freelance earnings, capital gains and income from virtual digital assets wherever applicable.

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Those who sold shares, mutual funds or property during FY 2025-26 should carefully calculate and disclose capital gains. Resident taxpayers with foreign bank accounts, overseas investments or foreign income must also make the required disclosures to avoid penalties.

Taxpayers should also reconcile the details available in the Annual Information Statement (AIS) and Form 26AS with the income reported in the return. Any mismatch involving TDS, interest income, dividends or securities transactions could trigger notices or delay the processing of refunds.

Experts also recommend reviewing deductions and exemptions available under the chosen tax regime, paying any outstanding self-assessment tax before filing, and completing the mandatory e-verification after submission. An income tax return is considered valid only after successful e-verification through Aadhaar OTP, net banking or other approved methods.

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Avoid last-minute mistakes

Tax professionals caution against common errors such as selecting the wrong ITR form, overlooking AIS or Form 26AS mismatches, failing to disclose interest or dividend income, incorrectly reporting capital gains, entering incorrect bank account details, or forgetting to e-verify the return. Filing before the deadline also helps taxpayers avoid portal congestion and reduces the chances of last-minute errors.

Taxpayers who miss the July 31 deadline can still file a belated return by December 31, 2026. However, late filing may attract a fee of up to ₹5,000 under Section 234F, or ₹1,000 where total income does not exceed ₹5 lakh. Those with unpaid tax liabilities may also have to pay interest under Section 234A at 1% per month or part thereof on the outstanding tax. Delayed filing may also result in the loss of certain capital and business loss carry-forward benefits and could reduce the interest payable on income tax refunds.