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Taxpayers who missed the August 31 deadline to file their income tax returns for Assessment Year 2026-27 can still submit a belated return, but they may have to pay a late-filing fee and interest and could lose the benefit of carrying forward certain losses.

August 31 is the filing deadline for eligible non-audit taxpayers, including certain individuals and businesses earning income from business or profession. Taxpayers who fall under this category can file their returns by the original deadline on August 31.

However, missing the deadline does not mean that taxpayers lose the opportunity to file their returns. Under Section 139(4), a belated return for AY 2026-27 can be filed until December 31, 2026, or before completion of the assessment, whichever is earlier.

Late fee and interest

A late-filing fee under Section 234F may apply. The fee is ₹1,000 if the taxpayer’s total income does not exceed ₹5 lakh, while it can be ₹5,000 in other cases. Interest may also be charged on any outstanding tax liability.

Certain losses may not be carried forward

One of the key consequences of filing late is that taxpayers may not be able to carry forward certain business and capital losses. Such loss returns generally need to be filed within the original deadline under Section 139(1).

Verification is important

Taxpayers who file their returns should also complete the verification process. An unverified return is treated as invalid, while delayed verification can affect the effective filing date and lead to further consequences. The department allows 30 days for completing electronic verification or submitting ITR-V.

For taxpayers who have not yet filed, completing the return as soon as possible can help avoid further delays and ensure compliance with the applicable tax requirements.
A late-filing fee under Section 234F may apply. The fee is Rs 1,000 when total income does not exceed Rs 5 lakh and Rs 5,000 in other cases. Interest may also be charged on outstanding tax liability.

Loss Carry-Forward May Be Affected

Late filing can prevent taxpayers from carrying forward certain business and capital losses. Such loss returns generally need to be filed within the original deadline under Section 139(1).

Taxpayers filing today should also complete verification within the permitted period. An unverified return is treated as invalid, while delayed verification can make the filing date later and trigger consequences. The department allows 30 days for completing electronic verification or submitting ITR-V.