August 31 Flagged as Crucial Income-Tax Date for Some Taxpayers
31 August 2026 was the due date for filing income-tax returns for assessment year 2026-27 (financial year 2025-26) by taxpayers with business or professional income whose accounts do not need an audit. It is the first year in which this group had a separate date: until last year, they filed along with salaried and other non-business taxpayers by 31 July.
Where the new date comes from
The change was made through the Finance Bill, 2026. Under the heading "Rationalising due dates for filing of return of Income", the Memorandum explaining the provisions of the Finance Bill, 2026 states that similar amendments were made in Explanation 2 to section 139(1) of the Income-tax Act, 1961 "to extend the due date of filing return of Income for non-audit business cases and Trusts requiring no audits." The Memorandum states that the 1961 Act amendments come into force from 1 March 2026 for assessment year 2026-27 (previous year 2025-26). That is why the 31 August date applied to returns filed in 2026, even though the Income-tax Act, 2025 itself governs income from 1 April 2026.
The Income Tax Department reminded taxpayers in a post on X on 25 August 2026 that 31 August 2026 was the due date for filing returns for AY 2026-27 by taxpayers with business or professional income not subject to audit, according to an Upstox report on the reminder.
Who had to file by 31 August
- Individuals and HUFs with business or professional income whose accounts are not required to be audited. These taxpayers generally file ITR-3, or ITR-4 (Sugam) if they use the presumptive schemes under sections 44AD, 44ADA or 44AE.
- Partners of firms whose accounts are not required to be audited.
- Firms and other entities with non-audit business income, and trusts that do not require an audit.
Salaried individuals, pensioners and others without business income kept the 31 July due date. Taxpayers whose accounts need audit continue with 31 October, and those required to furnish a transfer pricing report continue with 30 November.
The same calendar under the Income-tax Act, 2025
From tax year 2026-27, the new law carries the same structure. The Memorandum explains that section 263(1)(c) of the Income-tax Act, 2025 is amended to set these due dates, with effect from 1 April 2026:
| Category | Due date |
|---|---|
| Assessee to whom section 172 (transfer pricing report) applies, including partners of such firms and their spouses | 30 November |
| Companies, and assessees whose accounts are required to be audited | 31 October |
| Assessees with business or profession income not requiring audit, and partners of such firms | 31 August |
| All other assessees | 31 July |
The Finance Bill also extended the time for filing a revised return under section 263(5) of the 2025 Act from nine months to twelve months from the end of the relevant tax year. A fee under section 428(b) is proposed for a revised return filed after nine months.
What to do if the date was missed
A non-audit business taxpayer who could not file by 31 August 2026 should file the return for AY 2026-27 as soon as possible, and compute interest and late fee as applicable before submission. Taxpayers who wrongly assumed the 31 July date applied to them, and filed early, need take no further action if the return was complete.
For 2027, professionals should plan three separate peaks for individual clients: 31 July for non-business returns, 31 August for non-audit business returns, and 31 October for audit cases. The work for each should be started well ahead, since tax audit reports themselves must be furnished at least one month before the 31 October return date.
Updated on 27 September 2026: replaced the vague summary with the specific categories covered by the 31 August due date, the legal basis in the Finance Bill, 2026 Memorandum, the matching due dates under section 263 of the Income-tax Act, 2025, and the revised return change.
