With the July 31, 2026 deadline approaching, taxpayers can follow a comprehensive 15-step guide to ensure smooth ITR filing. According to The Times of India, the process begins with confirming PAN and Aadhaar linking since the portal requires this verification. Taxpayers must select the correct ITR form (ITR-1 to ITR-7) based on income source - salary, freelance, business, profession, or HUF - while keeping Form 16, Form 26AS, and Annual Information Statement (AIS) documents readily available. Most importantly, taxpayers should decide their income tax regime (new or old) before filing rather than during the process. The portal now pre-fills tax-related information from these documents, but the onus of accuracy remains with the taxpayer to avoid unwanted scrutiny.
As the July 31 ITR filing deadline approaches, tax experts are warning that waiting until the last day could cost taxpayers far more than just a late filing fee. According to CA Parag Jain, Tax Head at 1 Finance, 'Every taxpayer who has not yet filed is heading to the same portal on the same day. That alone is the first risk.' He notes that while the Income Tax Department has extended filing deadlines in previous years after portal issues, taxpayers should not assume an extension this time. The financial consequences extend beyond the late fee, as capital losses from equity, F&O or property can only be carried forward if the return is filed by July 31. Filing even one day late forfeits this benefit permanently, while taxpayers filing after the due date may also lose the option of the old tax regime and interest under Section 234A starts accruing from August 1. As per The Times of India, filing after July 31, 2026 allows only the new tax regime, making the deadline particularly significant for those planning to opt for the old regime.
As the deadline approaches, heavy traffic on the income tax portal often leads to login failures, OTP delays, session timeouts or Form 26AS loading issues. According to Jain, these are recurring problems during the final days of every filing season. The Institute of Chartered Accountants of India (ICAI) has previously raised concerns with the Income Tax Department over such technical glitches. Any figure in the ITR that does not match what the department already holds gets flagged during processing. Resolving an Annual Information Statement (AIS) mismatch takes time that simply does not exist on July 31. An unvalidated bank account on the income tax portal can delay refunds even if the return is filed successfully, while a wrong digit in the bank account does not stop the return from being filed but stops the refund from arriving. As per the latest reports, taxpayers facing technical issues should try refreshing the page, clearing browser cache, using an updated browser or attempting to file during less busy hours.
A return filed on July 31 joins the largest processing batch of the year, while returns filed earlier in the month are processed faster and refunds credited sooner. Taxpayers should ensure their bank account is pre-verified and complete e-verification within 30 days of filing. As per the Income Tax Department's latest advisory, the department warned that delaying the exercise until the final day could result in unnecessary stress, technical issues and slower response on the e-filing portal due to increased traffic. The department posted on social media platform X, stating that 'I'll Do It Tomorrow' often turns into deadline-day panic. Don't wait for July 31, 2026 to file your ITR-1 & ITR-2 for AY 2026-27. Reconcile your documents and file ITR-1 & ITR-2 for AY 2026–27 today!'. With today being the final day, all eligible taxpayers who have not yet filed and e-verified their tax returns should complete the process immediately to avoid last-minute glitches, technical issues, or compliance-related complications.
For taxpayers who miss the July 31 deadline, a belated income tax return can be filed within nine months from the end of the relevant tax year - by December 31, 2026 for FY 2025-26. However, this comes with significant penalties - late filing fee of up to ₹5,000, capped at ₹1,000 for taxpayers whose income is below ₹5 lakh. Additionally, any unpaid tax will attract penal interest at 1% per month from the original due date until the return is filed, with interest on advance tax defaults continuing to accrue. The most serious consequence is that taxpayers cannot carry forward losses, except losses from house property, to future years. As per The Times of India, filing after the due date may invite unwanted scrutiny which could delay the process and refund, making early filing essential for avoiding these complications. Taxpayers can still file returns after the deadline, but they will be treated as belated returns and may attract additional penalties.
