ITR filing deadline 2026: Experts explain 5 reasons you shouldn’t wait until July 31 to file your income tax return

With the July 31 deadline for filing income tax returns (ITRs) approaching, many taxpayers are still waiting in the hope of a last-minute extension or believing they can complete the process in a few hours.

Tax experts say that strategy can prove costly. Apart from the late filing fee, waiting until the last day increases the risk of technical glitches, delayed refunds, missed tax benefits and errors that may be difficult, or even impossible, to correct later.

CA Parag Jain, Tax Head at 1 Finance, outlines five reasons why taxpayers should avoid last-minute filing.

1. Missing the deadline could cost more than a late fee

Even a minor technical issue on July 31 can push your return beyond the due date.

“Every taxpayer who has not yet filed is heading to the same portal on the same day. That alone is the first risk,” says Jain.

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.

More importantly, the financial consequences go beyond the late fee. “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 that benefit permanently,” he says.

Jain adds that taxpayers filing after the due date may also lose the option of the old tax regime, where applicable, while interest under Section 234A starts accruing on unpaid tax from August 1.

2. Documents may be ready, but your return may not be

Having Form 16 and investment proofs does not necessarily mean the return is ready to file.

“Documents being ready and the return being ready are two different things,” says Jain.

He points to two common last-minute issues. One is an unvalidated bank account on the income tax portal, which can delay refunds even if the return is filed successfully. The other is a mismatch in the Annual Information Statement (AIS), which records interest income, dividends, securities transactions and other financial information reported to the tax department.

“Any figure in the ITR that does not match what the department already holds gets flagged during processing. Resolving an AIS mismatch takes time that simply does not exist on July 31,” he says.

3. Portal glitches can derail your filing

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. He also notes that the Institute of Chartered Accountants of India (ICAI) has previously raised concerns with the Income Tax Department over such technical glitches.

“None of these have quick workarounds under deadline pressure,” he says, adding that filing early gives taxpayers enough time to deal with unexpected issues.

4. Filing late can also delay your refund

Waiting until July 31 could also mean waiting longer for your tax refund.

“A return filed on July 31 joins the largest processing batch of the year. Returns filed earlier in the month are processed faster and refunds credited sooner,” says Jain.

He adds that taxpayers should also ensure their bank account is pre-validated and complete e-verification within 30 days of filing. “A wrong digit in the bank account does not stop the return from being filed. It stops the refund from arriving,” he says.

An unverified return is treated as if it was never filed, making timely e-verification just as important as submitting the return itself.

5. Some mistakes cannot be fixed later

Many taxpayers assume any error can be corrected through a revised return. However, Jain says that is not always the case.

“Capital losses not claimed in an on-time return cannot be introduced through a revised return filed after July 31. The benefit is permanently forfeited for that year,” he explains.

Other difficult-to-correct mistakes include selecting the wrong tax regime in a belated return, reporting an incorrect residential status and entering the wrong bank account details, all of which can lead to delays or loss of tax benefits.

With the deadline nearing, experts advise taxpayers not to rely on a possible extension. Filing well before July 31 provides enough time to resolve discrepancies, avoid portal congestion, complete e-verification and ensure the return is accurate, reducing the risk of costly and irreversible mistakes.