July 31 ITR Deadline: What Taxpayers Risk Losing
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- India's income tax return deadline for salaried taxpayers and non-audit cases falls on July 31, 2026, covering Assessment Year 2026-27, while business and professional income taxpayers face later deadlines depending on audit requirements
- Capital losses from selling shares, mutual funds, or other capital assets during FY 2025-26 can be carried forward for up to 8 assessment years — but this benefit is forfeited if the return is filed after the original due date
- Belated returns filed up to December 31, 2026 come with late filing fees, interest on unpaid taxes, and the loss of certain tax benefits available only with on-time filing
- House property losses are a notable exception — they can generally be carried forward even when the return is filed late, subject to the Income Tax Act's provisions
- Revised returns can be filed at no separate fee until December 31, 2026, with eligible corrections accepted up until March 31, 2027
- Interest on unpaid taxes applies only to outstanding amounts remaining after adjusting TDS, advance tax, and other eligible tax credits
Why it matters: An investor who booked capital losses in FY 2025-26 and misses the July 31 deadline forfeits the ability to offset future capital gains for up to 8 assessment years — meaning future profitable sales could face a larger tax bill that carried-forward losses would otherwise have neutralized.
