As the deadline for most income tax returns has passed, a special window remains open until 31 August for taxpayers with business or professional income, highlighting recent changes in filing requirements and the importance of accurate reporting for traders, freelancers, and content creators.
The 31 July deadline for most income tax returns for assessment year 2026-27 has already passed, but a separate filing window remains open for many people whose income includes business or professional receipts. According to The Economic Times, salaried taxpayers with side income from futures and options trading, intraday dealing, freelancing, consulting or content creation may still file until 31 August if they are not subject to tax audit. The staggered timetable reflects the wider filing changes introduced in the latest Budget, which have split return deadlines by taxpayer category.
For anyone juggling salary and self-employed income, the first step is reconciliation. That means matching Form 16 against the Annual Information Statement and Form 26AS, then checking bank credits, invoices, GST returns and broker statements against what is reported in the return. Divya Baweja of Deloitte India told The Economic Times that freelancers should verify receipts against their records, while traders should confirm turnover, profits or losses and brokerage statements. Suresh Surana, a chartered accountant quoted by the paper, said mismatches between the return and the tax department’s records can lead to notices, delays or inquiries, especially now that the authorities have access to multiple reporting streams.
The form choice matters just as much as the figures. Livemint said intraday and F&O traders generally need ITR-3 because that income is treated as business income, not capital gains. The Economic Times similarly reported that salaried people with regular trading, freelance or consulting income will usually need ITR-3, while ITR-4 is meant for eligible taxpayers using presumptive taxation. Under that scheme, certain professionals may declare 50% of gross receipts as income under Section 44ADA, while eligible businesses can use Section 44AD, where income is deemed at lower fixed percentages of turnover, subject to the statutory conditions.
The tax treatment of influencers remains less clear-cut. The Economic Times reported that the tax department has created a new code for social media influencers in ITR-3 and ITR-4, but some advisers caution that the code does not itself change the underlying law. Himank Singla of SBHS Associates told the paper that influencers are not expressly listed as notified professionals under the Income Tax Act, so the mere presence of a code should not be taken as formal recognition for presumptive professional taxation. That uncertainty is one reason practitioners are calling for a specific clarification from the tax department.
Errors in classification can be costly. The Economic Times said one frequent mistake is reporting F&O income as capital gains, even though it is generally treated as non-speculative business income, while intraday equity trading is usually speculative business income. Surana also warned that speculative and non-speculative losses follow different set-off rules, so taxpayers need to preserve proper records if they want to carry losses forward. The paper added that choosing the wrong form or misreporting deductions can make a return defective and may trigger tax notices, making careful disclosure and record-keeping essential for anyone with more than one source of income.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
