ITR-1, ITR-2, ITR-3, ITR-4 : Deadlines, Eligibility, and Audit Thresholds for AY 2026-27

The ITR filing deadline for FY 2025-26 isn't a single date. It depends on which form you use, whether your accounts need a tax audit, what category of taxpayer you are, and whether transfer-pricing provisions apply. Most salaried individuals and pensioners filing ITR-1 or ITR-2 needed to file by 31 July 2026 — that window has closed. Professionals and small business owners filing ITR-3 or ITR-4 without an audit requirement get an extra month, until 31 August 2026. Here's exactly where you stand — plus what "turnover" means and the audit thresholds that decide whether it applies to you.

Quick Reference: Where You Stand

If your form's deadline has already passed and you haven't filed, don't wait for an extension — move straight to a belated return so the late fee doesn't grow further. Details on all of this follow below.

FY 2025-26 vs AY 2026-27

Turnover: What It Means (Full Calculation in Our Turnover Blog)

Turnover only matters if you're reporting trading activity as business income — F&O, intraday equity, or business-classified delivery trades. If you're reporting gains as capital gains instead, turnover calculation doesn't apply at all. Its only real purpose is deciding whether a tax audit is required — it isn't the amount you're taxed on. Actual tax is based on net profit, after allowable expenses like brokerage, platform fees, and other trading costs.

In short: delivery turnover is your sell value, intraday turnover is the sum of absolute profit and loss per trade, and F&O turnover is the sum of absolute profit/loss across trades (with option premium included unless it's already built into the P&L figure, as it is in Kotak Neo's reports). For the full worked methodology — including the trade-wise vs scrip-wise calculation methods and how to check your turnover breakdown in Kotak Neo Reports — see our dedicated How to Calculate F&O Turnover blog.

FY 2025-26 is the year you earned the income (1 April 2025 to 31 March 2026). AY 2026-27 is the year that income gets assessed and taxed — you select AY 2026-27 on the e-filing portal, not the financial year itself.

One clarification worth noting this year: although the Income Tax Act, 2025 came into force on 1 April 2026, your return for FY 2025-26 is still governed entirely by the Income Tax Act, 1961, since the income was earned before the new Act took effect.

ITR Deadlines at a Glance

Your correct deadline depends on audit status as much as on your form number.

As of the most recent confirmation, no extension has been notified for the 31 July deadline — this year's forms and utilities were released on schedule (ITR-1 and ITR-4 went live 1 May 2026, followed by ITR-2 and ITR-3), so a repeat of past form-delay extensions isn't expected. Always check the e-filing portal for the latest status before filing.

ITR-3 due date

31 August 2026 for non-audit cases, 31 October 2026 if your accounts require a tax audit.

ITR-4 due date

31 August 2026 if no tax audit applies, 31 October 2026 if one does.

Who Files What: Eligibility for Each Form

ITR-1 — resident individuals with salary or pension income, income from up to two house properties (new this year — a second property no longer forces a move to ITR-2), other sources like interest, and total income up to ₹50 lakh. Not usable with capital gains, business/professional income, or foreign assets.

ITR-2 — individuals and HUFs with capital gains (the relevant form for most investors with stock, mutual fund, or bond sale income), foreign assets or income, or more than two house properties — but no business or professional income.

ITR-3 — individuals and HUFs with business or professional income, including F&O trading income and intraday trading income (both treated as business income, not capital gains), and freelancers/professionals who haven't opted for presumptive taxation.

ITR-4 — individuals, HUFs, and firms (other than LLPs) who've opted for presumptive taxation under Sections 44AD, 44ADA, or 44AE. Simpler than ITR-3 — no requirement to maintain detailed books.

If You Miss the Deadline: Three Different Routes

These are often confused, but they serve distinct purposes:

Belated return (Section 139(4)): filed after 31 July but by 31 December 2026. Attracts a Section 234F fee (₹1,000 if total income is up to ₹5 lakh, ₹5,000 otherwise) plus Section 234A interest at 1% per month on any unpaid tax — even one day late counts as a full month. You lose the ability to carry forward business or capital losses, and if you had business/professional income, the option to switch to the old tax regime has already closed.

Revised return (Section 139(5)): available until 31 March 2027, and can itself be revised again any number of times within that window.

Updated return / ITR-U (Section 139(8A)): available even if you never filed anything for the year, but can only be used to report additional income and pay additional tax — not to claim a refund, create a loss, or reduce a previously reported liability. It's unavailable once search, survey, or assessment proceedings are underway, and only one ITR-U is allowed per assessment year. The additional tax rises with delay: 25% within 12 months of the end of the AY, 50% within 12-24 months, 60% within 24-36 months, 70% within 36-48 months.

Audit Threshold Limits: ITR-3 vs ITR-4

Whether you need a tax audit depends on how much you're trading or earning, and which form you file. Here's the simple version:

If you file ITR-4 (presumptive scheme): You're generally audit-free as long as you stay under ₹3 crore turnover (business) or ₹75 lakh (professionals), with most of your transactions done digitally rather than in cash. The only time audit kicks in here is if you report profit lower than what's expected under the presumptive scheme, and your total income is above the basic tax-free limit. In plain terms: declare a reasonable profit, stay under the limit, and you won't need an audit.

If you file ITR-3 (regular business income, including F&O and intraday trading):

• Audit applies once turnover crosses ₹10 crore —
  Key Takeaways
  
• Deadlines are staggered by form and audit status this year: 31 July for ITR-1/2, 31 August for ITR-3/4 (non-audit), 31 October for audit cases, 30 November for transfer-pricing cases.
  
• Missed 31 July? A belated return is available until 31 December 2026, with a Section 234F fee and Section 234A interest attached, and loss of carry-forward benefits.
  
• Turnover only applies when trading income is reported as business income, not capital gains — see our dedicated Turnover blog for the full calculation methodology.
  
• ITR-4: stay audit-free under ₹3 crore turnover (business) or ₹75 lakh (professionals), mostly digital transactions, and a reasonable declared profit.
  
• ITR-3 (includes F&O/intraday): audit applies above ₹1 crore turnover, or ₹10 crore if transactions are mostly digital — which is the number that usually matters for traders. Professionals: ₹50 lakh gross receipts.
  

This information is for general guidance only. Please consult a Chartered Accountant for turnover treatment and audit applicability specific to your situation.