India's tax department urges non-audit businesses to file returns by month-end

The Income Tax Department on Monday issued a reminder to taxpayers with business or professional income who fall outside audit requirements to complete their return filings before the August 31 deadline for the current assessment year.

As of August 20, more than 2.6 crore ITR-3 and ITR-4 forms had been filed through the e-filing portal, bringing the total number of income tax returns submitted for Assessment Year 2026-27 to over 6.5 crore. This includes approximately 5.9 crore simpler return forms (ITR-1 and ITR-2) that were filed by the earlier July 31 due date.

Taxpayers in the non-audit category have several return filing options depending on their income source and business structure. ITR-3 is used by individuals and Hindu Undivided Families earning income from proprietary businesses or professional practices. ITR-4 serves as a streamlined option for small and medium-sized business taxpayers, while ITR-5 is filed by partnership firms and Limited Liability Partnerships.

The department's reminder emphasizes the importance of timely compliance, encouraging eligible taxpayers to file their returns before the approaching deadline to ensure smooth processing and avoid potential penalties for late submission.