Over 6.5 crore returns filed so far; income tax department urges taxpayers to file ITR-3, 4, 5 and 7 before August 31

More than 6.5 crore income tax returns have already been filed for assessment year (AY) 2026-27, including over 2 crore ITR-3 and ITR-4 returns. The deadline to file ITR for several categories of taxpayers who are not required to get their accounts audited is just days away.

The income tax department has therefore urged taxpayers to avoid the last-minute rush and file their returns before August 31, 2026.

“Over 6.5 Crore ITRs have already been filed for AY 2026-27, including more than 2 Crore ITRs 3 & 4 as on August 20, 2026. Avoid the last-minute rush. File your ITR-3, 4, 5 & 7 (non-audit) before 31st August 2026,” income tax department said in a X (formerly Twitter) post on Friday.

Who needs to file ITR by August 31?

The August 31 applies to both individual taxpayers and companies, provided they are not liable for a tax audit. The following categories of taxpayers must submit their return within the deadline to avoid penalty and loss of benefits:

• Freelancers and independent professionals
• Consultants
• Small business owners
• Intraday and F&O traders
• Taxpayers eligible for the presumptive scheme under Sections 44AD, 44ADA and 44AE
• Salaried individuals with additional freelance or consulting income
• Salaried individuals with F&O or intraday trading income

When filing your returns, taxpayers must complete the process by e-verifying their ITR within 30 days. Failure to do so may result in your ITR being treated as invalid or as if it was never filed.

Which ITR form applies to you?

If you do not know which return form to choose, click “Help me decide” under which ITR form to file and the portal will display the eligibility conditions for different ITR forms based on your taxpayer status.

Check which tax return form is meant for you:

• ITR-5 form: Entities such as firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), Body of Individuals (BOIs), Artificial Juridical Persons and certain other entities.
• ITR-7 form: Individuals receiving income from charitable or religious trusts, political parties, research associations and other such specified institutions or entities.

Before you choose a form, make sure that you read the conditions carefully on the e-filing portal. One must only select the form that matches their eligibility because any error can lead to tax notices and other consequences.

What happens if you file wrong ITR form?

In case you end up filing an incorrect ITR form, the income tax department may treat the return as defective under Section 139(9) and issue a notice requiring correction within a specified time. The return is not processed until the defects are rectified, which in turn may delay refunds and trigger additional verification if income details do not match departmental records.

Though no direct penalty is imposed simply for choosing the wrong ITR form if the mistake is genuine and corrected in time. But, if the incorrect filing results in underreporting of income, excess deduction claims or inaccurate disclosures, taxpayers may face interest, penalties or scrutiny proceedings.