New Delhi: The announcement of an extended August 31 income tax return (ITR) deadline in Budget 2026 may have come as a relief to many but it doesn’t apply across the board. The government has opted for a staggered filing schedule to ease peak-season pressure, and the benefit of extra time is limited to specific categories of taxpayers. As Finance Minister Nirmala Sitharaman clarified in her Budget speech, most individual taxpayers will continue to follow the existing deadline while only select groups will qualify for the extended timeline.
No Change In July 31 Deadline For Most Taxpayers
For the majority of individual taxpayers, the July 31 due date remains unchanged. Salaried employees and those filing ITR-1 or ITR-2 will still have to submit their returns by this deadline, as no extension has been granted for this category. This includes employees, pensioners, and individuals earning income from salary, interest, or capital gains. This means they should continue to plan their tax filings just like in previous years.
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Who Can File ITR By August 31?
The extended August 31 deadline is not for everyone. According to the Income Tax Department’s FAQs issued after Budget 2026, the benefit applies only to non-audit business cases and certain trusts covered under Section 263(1)(c) of the Income Tax Act, 2025. For these specific categories, the due date has been shifted from July 31 to August 31, while other taxpayers must continue to follow the original timeline.
Understanding Non-Audit Business Cases
Non-audit business cases generally refer to small businesses and professionals who are not required to get their accounts audited. This usually includes entrepreneurs, freelancers, and self-employed individuals whose annual turnover stays below the prescribed audit limit. Typically, that means turnover under Rs 1 crore, or up to Rs 2–3 crore for those who choose the presumptive taxation scheme. These taxpayers have simpler compliance requirements compared to larger businesses that fall under mandatory audit rules.
Why Was The Deadline Extended?
Earlier, these taxpayers were required to file their returns by July 31. The government has now pushed the deadline to August 31 to provide additional time for compliance. The move aims to ease last-minute rush, reduce filing pressure during peak season, and ensure smoother return submissions under the new Income Tax framework.
