Last day to file ITR today:Over 5 crore returns filed; ₹5,000 penalty for missing the deadline; CA explains 4 easy steps and key rules

Today is the last date to file Income Tax Return (ITR). More than 5 crore taxpayers had filed their ITRs by Thursday. If you miss today’s deadline, you can still file a belated return by December 31 after paying the applicable late fee. Who must file ITR by 31 July? Note: For business owners and professionals who require audit, the last date is 31 August 2026 or 31 October 2026 Chartered Accountant (CA) Anand Jain explains the ITR filing process in four steps: 1. Keep all documents ready 2. Choose the correct ITR form 3. File your ITR online 4. Verify your ITR Five major consequences of not filing your ITR by 31 July 1. You will have to pay a penalty for filing a belated return 2. 1% monthly interest on outstanding tax If you have any outstanding tax and fail to file your ITR on time, interest will be charged under Section 234A of the Income Tax Act. Interest at 1% per month will be levied on the outstanding tax amount. However, if your entire tax liability has already been paid, this interest will not apply. 3. You cannot carry forward losses Under income tax rules, filing your ITR on time allows you to carry forward the current year’s losses and set them off against future profits. If you file a belated return, you will lose the benefit of carrying forward capital losses from property sales, losses from shares or mutual funds, and business losses. 4. Delay in receiving your tax refund If you have paid more tax than your actual liability and want to claim a refund, timely filing is essential. Refunds for belated returns generally take longer to process. 5. Impact on loan approval and visa applications Filing your ITR late can affect your financial profile. Loan processing: Banks often ask for previous ITRs while processing loans. A delayed return may be viewed as poor financial discipline, leading to delays in loan approval. Visa applications: Many countries require recent ITRs as supporting documents for visa applications. A belated return may create difficulties during the visa process. Avoid providing incorrect information Some taxpayers try to reduce their tax liability by claiming incorrect deductions for LIC, mediclaim, home loan interest, or donations. However, the Income Tax Department now uses AI-based data analysis to scrutinise returns. Providing incorrect information may result in a notice. No announcement on deadline extension The biggest question among taxpayers this year is whether the government will extend the July 31 deadline. As of July 29, 2026, neither the Income Tax Department nor the Central Board of Direct Taxes (CBDT) has issued any official notification extending the deadline. Until an official announcement is made, taxpayers should treat July 31 as the final date and complete their filing without delay. Knowledge Box: What is a belated return? If a taxpayer fails to file an Income Tax Return within the prescribed deadline, Section 139(4) of the Income Tax Act allows them to file it later. This is known as a belated return. For AY 2026–27, the last date to file a belated return is December 31, 2026, subject to payment of the applicable late fee.