As the AY 2026-27 filing season enters its closing stretch, most avoidable notices, lost benefits and delayed refunds arise not from complex returns but from ordinary ones filed in haste. The following points cover the areas that warrant careful verification before a return is submitted.
This year's return remains under the Income-tax Act, 1961
Although the Income-tax Act, 2025 came into force on 1 April 2026, the return being filed now is for income earned during FY 2025-26. That return including its due date, interest, late fee, and the belated and revised windows — continues to be governed by the Income-tax Act, 1961. The 2025 Act applies to Tax Year 2026-27 (FY 2026-27) onwards.
This distinction has practical effect. The late-filing fee for AY 2026-27 falls under Section 234F of the 1961 Act , not Section 428 of the 2025 Act. Any section cited in submissions or client notes for this year's return should refer to the old Act.
Due dates now vary by nature of income
The uniform "31 July" deadline no longer applies to all individuals. For AY 2026-27, the due dates under Section 139(1) are staggered:
| Category | Return | Due date (AY 2026-27) |
|---|---|---|
| Salary, pension, capital gains, other sources (no business income) | ITR-1 / ITR-2 | 31 July 2026 |
| Business / professional income, not subject to audit | ITR-3 / ITR-4 | 31 August 2026 |
| Cases requiring tax audit | ITR-3/5/6, etc. | 31 October 2026 |
| Cases with transfer pricing report (Form 3CEB) | — | 30 November 2026 |
The shift of non-audit business and professional returns to 31 August is new for this year and provides additional time to freelancers, consultants and presumptive-taxation filers under Sections 44AD and 44ADA. Correct classification is essential — a salaried taxpayer with a small consultancy must identify the applicable form and date accurately.
Reconcile AIS, TIS and Form 26AS before filing
The Annual Information Statement (AIS), the Taxpayer Information Summary (TIS) and Form 26AS should be reconciled against the taxpayer's own records before the return is prepared. Common gaps include interest from fixed deposits and savings accounts, dividends, sale of shares or mutual-fund units, property transactions, and TDS that has been deducted but not yet reflected.
A mismatch between reported figures and the data already available to the department is the most frequent trigger for a defective return notice under Section 139(9) or a subsequent query. Reconciliation at the outset is considerably less costly than responding to a notice later.
The regime choice is a deliberate decision
Under Section 115BAC, the new regime is the default. For a salaried or non-business taxpayer, opting for the old regime is a selection made within the return itself and can be revisited each year. For a taxpayer with business or professional income, opting out of the new regime requires Form 10-IEA filed within the due date, and the ability to switch back is restricted.
Both computations should be compared before the choice is finalised. For FY 2025-26, the enhanced rebate under Section 87A makes total income up to ₹12 lakh effectively tax-free under the new regime (with the standard deduction taking a salaried taxpayer somewhat higher), while the old regime continues to favour taxpayers with substantial deductions under Chapter VI-A, home-loan interest and HRA. The outcome is taxpayer-specific.
Filing is not completion - Verify within 30 days
Uploading the return does not, by itself, constitute furnishing it. Under the CBDT's notification, the return must be e-verified within 30 days of filing. If verified within that window, the date of upload stands as the date of furnishing. If verification is completed after 30 days, the date of verification becomes the date of furnishing, which can render an otherwise timely return late, with the associated consequences. An unverified return is treated as invalid, as though never filed.
Aadhaar OTP verification is instant. Where the physical ITR-V route to CPC Bengaluru is used, postal time must be allowed for, as the date of receipt at CPC governs.
Clear self-assessment tax and protect carry-forwards
Any self-assessment tax due should be paid before filing. Interest under Section 234A accrues at 1% per month on unpaid tax from the day after the due date, with Sections 234B and 234C applying to advance-tax shortfalls; filing within the due date does not halt interest where tax remains outstanding.
Filing by the due date also preserves the right to carry forward losses, particularly capital losses and business losses. Where a return is filed belated, these carry-forwards are generally forfeited, with house-property loss and unabsorbed depreciation being the usual exceptions. For a taxpayer holding a loss intended for future set-off, timely filing carries direct financial value.
Fallback windows for a missed deadline
A belated return under Section 139(4) may be filed up to 31 December 2026, subject to the Section 234F fee (₹5,000, reduced to ₹1,000 where total income does not exceed ₹5 lakh) and applicable interest. The window for a revised return under Section 139(5) for AY 2026-27 has been extended to 31 March 2027 by the Finance Act, 2026 (previously 31 December). An updated return (ITR-U) under Section 139(8A) remains available thereafter within the prescribed period.
These are remedial provisions rather than a substitute for timely compliance. A belated return attracts the fee, exposes the taxpayer to interest, and forfeits loss carry-forwards.
Filing in the final week
Portal traffic peaks in the last few days, and utility updates, session time-outs and OTP delays are more likely at that stage. A return that is ready should be filed without waiting. The substantive work of the season lies in reconciliation, the regime determination and verification; where these are addressed correctly, the deadline itself is straightforward to meet.
Disclaimer: This article is intended for general informational and educational purposes only and does not constitute professional advice. The provisions referred to are based on the Income-tax Act, 1961 (which continues to govern AY 2026-27), the Income-tax Act, 2025, and notifications in force as on the date of writing, and are subject to change through further notifications, circulars or clarifications issued by the Central Board of Direct Taxes. Readers are advised to verify the current position and consult a qualified professional with reference to their specific facts before acting on any part of this article. The author and the firm accept no liability for any loss arising from action taken or refrained from on the basis of this content.
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