According to the latest Income Tax Department data, over 5.5 crore income tax returns (ITRs) have been filed for the income tax year 2025-26 (assessment year 2026-27) as of July 30, 2026. The tax department has reported that over 42 lakh average ITRs were filed on July 30 alone, indicating a significant surge in last-minute filings. July 31, 2026 represents the critical deadline for taxpayers filing ITR-1 and ITR-2 forms, with those forms specifically required to be submitted on or before this date to avoid penalties and tax notices. However, tax experts believe there is little chance of another extension this year, as the circumstances are significantly different from previous years. The latest milestone comes less than 24 hours before the final deadline, with the department urging taxpayers to file their ITR-1 and ITR-2 well before July 31, 2026 to avoid deadline-day panic. The department has specifically advised taxpayers to reconcile their documents and file ITR-1 or ITR-2 for AY 2026-27 today to avoid possible technical issues and heavy traffic on the e-filing portal closer to the deadline.
The government has sought to reassure taxpayers about the e-filing portal's readiness for the last-minute rush, with the Finance Ministry confirming that the income tax e-filing portal has been performance-tested to process up to 1 crore ITRs in a single day. During peak periods, the platform has handled 1.61 crore daily transactions, including return filings, logins, challan payments and Form 26AS services, while daily logins have touched nearly 99 lakh. The Income Tax Department has also reported that more than 5.5 crore ITRs had been filed for AY 2026-27 by July 30, with the portal infrastructure demonstrating its ability to handle the high volume effectively. This performance data suggests the portal infrastructure is handling the current filing momentum successfully, supporting the experts' view that an extension is unlikely given the current capacity and infrastructure improvements. The department has also introduced a staggered filing schedule this year, with different categories of taxpayers having different due dates, which has helped reduce pressure on the portal during peak filing season. Recent developments show that Chartered Accountants have reported smooth portal performance during peak filing hours, with professionals noting that the portal is working more smoothly than ever before. As per CA Rajendra Sharma, "Looks like @IncomeTaxIndia finally cracked the traffic problem! Even in the last few days of ITR filing, the portal is working smoothly."
While the government's capacity claims are reassuring, tax experts emphasize that higher portal capacity should not be interpreted as a guarantee of risk-free last-minute filing. CA Chandni Anandan from ClearTax noted that "the enhanced capacity is certainly reassuring and reflects a significant improvement in the Income Tax Department's digital infrastructure, however, taxpayers should not interpret the '1 crore returns a day' figure as an assurance that waiting until the last day is risk-free." She highlighted that infrastructure capacity is only one part of the filing ecosystem, with potential delays still arising from heavy concurrent logins, OTP generation and delivery, slower access to AIS, Form 26AS or TIS, session timeouts, Aadhaar authentication and bank verification. CA Parag Jain from 1 Finance added that "on paper, that capacity appears sufficient if the remaining load spreads across even two to three days. The concern is not capacity on paper. It is concentration. Filing patterns from previous years show a disproportionate share of returns arriving on the last day itself." Experts caution that waiting until the final evening leaves little room to deal with technical glitches or authentication delays before the deadline, with taxpayers filing at the last minute more likely to choose the wrong ITR form, overlook income disclosures or face e-verification issues. However, this year's situation appears different, with fewer signs of widespread portal disruption and a smoother filing experience being reported by many tax professionals, suggesting improvements made after past disruptions may be showing results.
With less than 24 hours remaining before the July 31 deadline, taxpayers must carefully determine which form to file based on their income and circumstances. ITR-1 (Sahaj) is a simpler form that caters to a large number of small and medium taxpayers, available to resident individuals with total income up to ₹50 lakh during FY 2025-26. It can be used by taxpayers earning income from salary or pension, income from one house property (excluding cases involving carried-forward losses), and income from other sources such as interest. Agricultural income should not exceed ₹5,000. However, taxpayers cannot use ITR-1 if they have capital gains, business or professional income, foreign assets or income, directorship in a company, investments in unlisted equity shares, or total income exceeding ₹50 lakh. ITR-2 is applicable to individuals and Hindu Undivided Families (HUFs) who are not eligible for ITR-1 but do not have income from business or profession. This form is generally used by taxpayers with income above ₹50 lakh, multiple house properties, capital gains from the sale of shares, mutual funds or property, foreign income or overseas assets, or other income that makes them ineligible for ITR-1. It is also the appropriate return for many investors and high-net-worth salaried individuals whose income profile is more complex but does not include business income. Tax experts emphasize that resident salaried individuals with total income up to ₹50 lakh can file ITR-1 in just 10 minutes, as all details are auto-populated in the online ITR mode, requiring only confirmation. The Central Board of Direct Taxes (CBDT) has also notified revised ITR forms for AY 2026-27, incorporating updated disclosure requirements related to areas such as long-term capital gains, losses from share buybacks and certain trading transactions.
Taxpayers who miss the July 31 deadline face significant penalties and restrictions, though they can still file belated returns by December 31, 2026. Late filing may attract a fee of up to ₹5,000 under Section 234F (₹1,000 where total income does not exceed ₹5 lakh), with those having outstanding tax dues also required to pay interest under Section 234A at 1 per cent for every month on unpaid tax. Missing the due date may also mean losing the benefit of carrying forward certain capital and business losses, while delayed filing could reduce the interest payable on tax refunds. Under the revised tax calendar announced in Union Budget 2026, while the due date for most individual taxpayers remains July 31, businesses and taxpayers whose accounts require audit have a later deadline of August 31. This year's situation is particularly different because many taxpayers have already completed their filings and there have been fewer complaints about technical issues, making an extension less necessary. Tax experts have repeatedly advised taxpayers not to wait until the last day, as heavy traffic on the portal, document mismatches or verification issues could delay filing. The department has also advised taxpayers to verify information before submitting their returns, including details available in Form 16, Annual Information Statement (AIS), Form 26AS, bank statements and other income records to avoid complications.
