The Income Tax Department has achieved significant compliance milestones for AY 2026-27, with over 5.9 crore income tax returns filed by the July 31 deadline for taxpayers not requiring an audit. According to the latest department announcement, more than 59 million ITRs were filed for AY 2026-27 by the July 31 deadline, demonstrating the scale of tax compliance achieved. This represents a substantial increase from the over 5 crore returns reported earlier in the filing season. The department has processed 23.38 lakh ITRs so far, with the e-filing portal showing 141.37 lakh individual registered users with 50.22 lakh returns filed and 46.96 lakh returns verified. The last date for filing income tax returns (ITRs) 1 and 2 for assessees who do not have to get their accounts audited was July 31, without penalty and interest. However, a closer analysis reveals that ITR-1 filings stand at 3.15 crore, compared with 3.3 crore last year, while ITR-2 filings are broadly in line with the previous year.
As reported by Mint, filing income tax returns on time can significantly benefit taxpayers' financial future. Adhil Shetty, CEO of BankBazaar, explains that an ITR serves as documentary proof of income and financial stability, particularly important for self-employed individuals or those with variable earnings. A regular ITR history can strengthen home loan applications and help credit card issuers evaluate repayment capacity, determining appropriate credit limits. For homebuyers, lenders consider multiple factors including income stability, repayment capacity, and overall financial discipline, with maintaining a consistent filing record providing additional credibility. The moderation in ITR-1 filings could partly reflect the higher income tax exemption threshold of up to ₹12 lakh under the new tax regime, reducing the need for some taxpayers to file returns.
According to Mint reports, lenders often use ITRs to assess income consistency, while salaried borrowers typically share salary slips and bank statements. A regularly filed ITR serves as an official income and compliance document that complements other financial records. For credit card applications, issuers review income profiles and past financial history to determine eligibility and set credit limits. The tax compliance history can eventually become an important financial credential that may help boost and strengthen home loan applications and support credit card eligibility. With ITR-3 and ITR-4 due by August 31, the overall filing numbers are expected to move higher in the coming weeks.
As reported by Mint, filing ITRs on time helps taxpayers build a healthy tax compliance history that strengthens future financial applications. The department's warning about avoiding last-minute rushes emphasizes the importance of timely submission for maintaining tax-compliant status with authorities. All taxpayers who have yet to file their taxes can benefit from completing the process without further delay, establishing a documented financial track record that can prove invaluable for future financial needs. The July 31 deadline for AY 2026-27 represents the standard filing timeline for most taxpayers, with the department urging prompt submission to avoid penalties and interest charges. In comparison, more than 7.3 crore returns were filed for AY 2025-26 by September 16, 2025, the extended deadline for that assessment year.
