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Business Desk – Income Tax Return: If you haven’t filed your Income Tax Return (ITR) by July 31, 2026, there’s no need to panic. You can still file a belated return until December 31, 2026. However, you may incur a late fee penalty and interest on the outstanding tax.

At the same time, some taxpayers can file their ITR without any late fees until August 31. Furthermore, the RBI Monetary Policy Committee (MPC) meeting in August could also impact your EMI.

The July 31 deadline has passed, what are the options now?

The last date for filing returns using ITR-1 and ITR-2 forms was July 31. If you haven’t filed your return by this deadline, you can now file a belated return by December 31, 2026.

However, late filing of returns will result in late fees and interest on the outstanding tax under Section 234A of the Income Tax Act. In such cases, the tax refund may take longer than usual.

How much will the fine be?

If your annual income exceeds ₹5 lakh, you will be charged a late fee of ₹5,000 for filing a belated return. Taxpayers with annual incomes up to ₹5 lakh will be charged a late fee of ₹1,000. Interest will also apply if there is any outstanding tax.

Who will get relief till 31st August?

Taxpayers who are required to file ITR-3 or ITR-4 form and whose tax audit is not required can file their returns till August 31, 2026, without any late fee.

This category includes self-employed professionals, freelancers, small businessmen and taxpayers who have opted for the Presumptive Taxation Scheme under Section 44AD and 44ADA.

Difference between ITR-1, ITR-2, ITR-3 and ITR-4

ITR-1 (Sahaj) is primarily for salaried employees and pensioners. ITR-2 is for those who have income from capital gains or other sources other than salary, but not business income.

ITR-3 is for those earning income from business or profession, while ITR-4 (Sugam) is for small businessmen and taxpayers adopting Presumptive Taxation Scheme.

What will be the impact of filing late ITR?

Filing your ITR after the deadline not only incurs a penalty but can also delay your tax refund. Interest will also be charged on any outstanding taxes. Therefore, experts recommend filing a belated return on time.

RBI meeting will also be monitored

In August, the meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will be held from 3 to 5 August and its decisions will be announced on 5 August.

If the RBI changes the repo rate, it could impact home loans, car loans, personal loan EMIs, and fixed deposit interest rates. However, the likelihood of a repo rate change at this meeting is currently considered low.