Record ITR Filings for AY 2026-27

The income tax department announced on Tuesday that a record 7.8 crore-plus income tax returns (ITRs) were filed for assessment year (AY) 2026-27 as of August 31, 2026. In a post on X, the department stated, "A record 7.8 crore+ ITRs have been filed for AY 2026-27 as on August 31, 2026," expressing thanks to taxpayers and tax professionals for their timely compliance.

This year's figure marks a significant increase from the previous year, when over 7.3 crore ITRs were filed by September 16, 2025, the extended deadline for non-audit cases for AY 2025-26.

The record filings include more than 5.9 crore ITR-1 and ITR-2 returns, which were submitted by the July 31 due date.

Revised Filing Schedule

The surge in filings is attributed to the revised statutory deadline for taxpayers with business or professional income whose accounts are exempt from audit, which ended on August 31. The Finance Act, 2026, amended the Income-tax Act, 1961, to introduce a modified return-filing schedule, which set August 31 as the deadline for non-audit business and professional taxpayers.

Under the amended framework, other taxpayers not falling under the designated groups were required to file by July 31. Compared with the July 31 deadline applicable to most other non-audit individual taxpayers, the revised schedule gives non-audit business and professional taxpayers an additional month.

The deadline for companies and taxpayers whose accounts require audit is October 31, while those covered by Section 92E's transfer-pricing requirements have until November 30.

Understanding the ITR Forms

For taxpayers falling under the non-audit category, the applicable ITR forms are ITR-3, ITR-4, ITR-5, or ITR-7, depending on their income source and entity type.

  • ITR-3 is filed by individuals and Hindu Undivided Families (HUFs) with income from a proprietary business or profession.
  • ITR-4 is a simpler form designed for small and medium taxpayers.
  • ITR-5 is used by firms, Limited Liability Partnerships, and Cooperative Societies.
  • ITR-6 is for companies registered under the Companies Act, and ITR-7 is for trusts and charitable institutions.

These forms cater to different categories of taxpayers, ensuring that various income types and structures are appropriately reported.

Audit Thresholds and Key Dates

Businesses whose total sales, turnover, or gross receipts exceed Rs 1 crore are generally required to undergo a tax audit under Section 44AB of the Income-tax Act. The threshold rises to Rs 10 crore when cash payments and receipts do not exceed 5 per cent of the corresponding totals. For professionals, the general audit threshold is gross receipts exceeding Rs 50 lakh, subject to additional requirements under the income-tax law.

Income earned between April 1, 2025, and March 31, 2026, during the financial year 2025-26, is assessed under AY 2026-27.

Although the Income-tax Act, 2025, came into effect on April 1, 2026, the Income Tax Department has clarified that returns for AY 2026-27 will continue to be governed by the Income-tax Act, 1961.

For taxpayers who miss the August 31 deadline, belated returns can be filed until December 31, 2026, or until the completion of assessment, whichever is earlier. Late filing fees are Rs 1,000 for those with total income below Rs 5 lakh and Rs 5,000 for incomes exceeding Rs 5 lakh.