Is extended August 31 ITR deadline applicable to all taxpayers or only select categories?
The Union Budget 2026 has proposed a staggered timeline for filing income tax return (ITR) to ease the rush during the peak filing season and give certain taxpayers more breathing room. Under this proposal, the extended August 31 deadline is meant specifically for non-audit business cases and Trusts, while the July 31 cut-off continues for most individual taxpayers with non-audit cases.
Here’s a clear look at who can file their ITR till August 31 and who must still meet the July 31 deadline.
Revealing information about ITR deadlines, the Budget 2026 document said, “In this regard, assessee having income from profits and gains of business or profession whose accounts are not required to be audited under this Act or under any other law in force and partner of a firm whose accounts are not required to be audited under this Act or under any other law in force or the spouse of such partner of a firm whose accounts are not required to be audited under this Act or under any other law in force or the spouse of such partner (if section 10 applies to such spouse), their due date for filing of return is proposed to be extended from July July to August 31. Further, individuals who file ITR-1 & ITR-2 forms, their due date for filing return of income shall remain July 31.”
Who is eligible to file ITR till August 31?
Deadline extension is applicable only to non-audit business cases and Trusts under 263(1)(c) of Income tax Act, 2025 from July 31 to August 31, as per a Frequently Asked Questions (FAQs) document provided by the Income Tax Department on Budget 2026.
Sanjoli Maheshwari , Executive Director , Nangia & Co LLP says, “Taxpayers viz. Individuals having small businesses or professionals, or any partnership firms having income from profits and gains of business or profession, whose accounts are not required to be audited as per the prescribed income tax provisions and partner of such partnership firms or the spouse of such partner would be eligible to file the return by the proposed extended date of 31st August.”
What are non-audit business cases under the Income Tax Act?
Non-audit cases refer to taxpayers whose turnover or receipts fall below the above thresholds. While they are exempt from tax audits. These typically include businesses with a turnover below Rs 1 crore, or up to Rs 2-3 crore if opting for presumptive taxation.
Publication – The Economic Times
By Sanjoli Maheshwari
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