The Income Tax Department reported that over 2 crore taxpayers have filed their income tax returns for the Assessment Year 2026-27 as of the latest data. This represents significant progress ahead of the July 31 deadline for filing ITRs 1 and 2 for income earned in the 2025-26 fiscal year. The filing momentum showed particular strength with more than 10 lakh returns filed on Friday alone, as reported by Business Standard, indicating increased taxpayer compliance and efficiency in the filing process. With the crucial deadline for filing both ITR-1 and ITR-2 set for July 31, the Income Tax Department has strongly advised all eligible taxpayers to complete their filings at the earliest to avoid last-minute portal congestion, potential technical difficulties, and late filing penalties.
Tax experts are strongly advising taxpayers to complete their ITR filing before the July 31 deadline, emphasizing that early submission can help avoid last-minute errors, resolve tax mismatches, claim refunds faster and ensure smooth compliance without depending on an extension. CA Chandni Anandan from ClearTax highlights that with nearly 2 crore returns already filed, taxpayers should not assume the deadline will be extended. "Filing early not only helps avoid last-minute technical issues and errors but also ensures faster processing of refunds and sufficient time to address any notices or discrepancies," she stated. Adhil Shetty, CEO of Bankbazaar, advises against relying on extension possibilities, noting that "Extensions are exceptional and depend on circumstances such as technical issues or administrative considerations." The remaining 15-16 days can be utilized to ensure returns are accurate, updated and complete, as experts warn against the annual ritual of procrastinating returns.
The filing data includes both ITR Form 1 (Sahaj) and ITR-2 returns, according to Business Standard reports. ITR-1 (Sahaj) is designed for resident individuals with annual income up to ₹50 lakh who have salary income, one house property, and agricultural income up to ₹5,000 per year. ITR-2 is specifically filed by individuals and Hindu Undivided Families (HUFs) not having income from profits and gains in business or profession, but having income from capital gains, multiple house properties or other specified sources. The department has been consistently encouraging taxpayers to file well ahead of the deadline to avoid last-minute technical issues, reduce filing errors and ensure quicker processing of refunds. With the crucial deadline for filing both ITR-1 and ITR-2 set for July 31, the Income Tax Department has strongly advised all eligible taxpayers to complete their filings at the earliest to avoid last-minute portal congestion, potential technical difficulties, and late filing penalties.
Tax experts emphasize that early filing provides multiple strategic advantages beyond compliance. CA Anshul Bhargava from ClearTax notes that early filing allows taxpayers to "reconcile their books, verify that all income has been taxed correctly, check tax credits, and identify mismatches before filing their return." Early filers receive refunds at the earliest possible time, and refund claims serve as financial documents required for credit checks and visa applications. For taxpayers with business income or investment income, early filing ensures no late compliance-related issues arise at a later date. "Waiting till the last minute creates unnecessary stress and panic, leading to poor decision-making," Bhargava warns, advising taxpayers to file returns immediately if documents are in place rather than hoping for reprieve. The proactive approach reflects the department's commitment to maintaining efficient tax compliance processes and reducing potential system bottlenecks during the final filing period.
