NEW DELHI — The Income Tax Department recorded a fresh milestone in voluntary tax compliance as filings for Assessment Year 2026-27 surpassed 7.8 crore returns by the close of the statutory deadline on August 31. The surge reflects robust taxpayer participation following recent legislative restructuring that granted non-audit business owners and professionals an extended compliance window to submit their annual filings for income earned during the 2025-26 financial year.
Under the modified filing schedule enacted through the Finance Act, 2026, non-audit business and professional taxpayers were permitted an additional month beyond the standard July 31 deadline applicable to regular salaried individuals. The regulatory architecture established under Section 44AB mandates tax audits for businesses with gross receipts exceeding one crore rupees, a threshold that rises to ten crore rupees when cash transactions remain below five per cent, while the audit ceiling for professionals stands at 50 lakh rupees.
Tax authorities clarified that despite the implementation of the new Income Tax Act, 2025, from April 1, 2026, filings for the current assessment cycle continue to be administered under the provisions of the Income-tax Act, 1961. Deadlines for audited entities and corporate filers remain set for October 31, while taxpayers navigating Section 92E transfer-pricing stipulations have until November 30 to complete their submissions.
Eligible taxpayers who missed the designated August 31 cut-off can still submit belated returns until December 31, 2026, or prior to the completion of formal assessment proceedings. Late filings attract a standardized statutory fee of 1,000 rupees for total income up to five lakh rupees, increasing to 5,000 rupees for incomes surpassing that threshold.
