Summary of this article
June 30 is scrutiny notice deadline for eligible filed returns
July 31 is ITR filing deadline for many individual taxpayers
Section 143(2) notices seek documents, not automatic tax demands
Taxpayers should cross-check AIS, Form 26AS, and tax credits before filing
For taxpayerly bring two very different income-tax milestones. June 30 marks the cut-off for the Income Tax Department (ITD) to issue scrutiny notices for eligible returns filed in the previous financial year. The attention then shifts quickly to July 31, which is the key income-tax return filing deadline for many individual taxpayers for Assessment Year 2026-27.
The two dates are often confused because both relate to income-tax compliance, but they apply to different stages of the process. A scrutiny notice is linked to a return already filed, while the July 31 deadline concerns filing the return for income earned during FY 2025-26.
For salaried taxpayers, pensioners, and others who do not need to get their accounts audited, July 31 is usually the most important date on the calendar. Filing early can help avoid last-minute errors, missed tax credits, and delays in refunds.
1 June 2026
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What The June 30 Scrutiny Deadline Means
A notice under Section 143(2) is issued when the ITD wants to examine a return more closely. Receiving a scrutiny notice does not mean the tax department has concluded that there is tax evasion or undisclosed income. It may only be seeking clarification on a claim, a transaction, or a figure disclosed in the return, along with the documents to support it.
A scrutiny notice can be issued when the income shown in the return does not match the details available in the department’s records. The difference could be in salary, bank interest, capital gains, tax deducted at source (TDS), large transactions, or deductions and exemptions claimed in the return.
The department can also seek clarification where the Annual Information Statement (AIS), Form 26AS, bank records, broker reports, or other financial data do not match the figures reported in the return.
Taxpayers who receive such a notice should not ignore it. The first step is to log in to the income-tax e-filing portal and check the e-Proceedings section. Go through the notice first. It will spell out the details or papers the department wants from you.
The notice will mention the documents sought from the taxpayer. These may range from bank statements and salary slips to Form 16, investment proofs, rent receipts, capital gains workings, home-loan records, or papers linked to a particular transaction. The response must be filed within the deadline stated in the notice. In more complex matters, taxpayers may consider taking professional help before submitting documents or explanations.
July 31 Is The Bigger Date For Most Individual Taxpayers
The July 31 deadline is especially relevant for individuals filing Income Tax Return-1 (ITR-1) or ITR-2 for AY 2026-27. This return will cover income earned between April 1, 2025, and March 31, 2026, according to a recent report by Business Today.
Taxpayers should not wait until the last week of July to begin the process. The first task is to collect all records and compare them with the information available on the tax portal. Keep Form 16, bank interest details, dividend statements, FD interest certificates, mutual fund and share transaction records, home-loan papers, and tax challans ready before filing.
Investors need to be careful while reporting capital gains. Sold shares, mutual funds, gold, or property during the year? Do not club the gains with other income. Report them separately, as the tax will depend on the asset and the period for which it was held. Do not forget to add dividend income, savings-account interest, FD interest, and earnings from foreign assets while filing the return.
Before you submit the return, look at the tax credits once. TDS, tax collected at source (TCS), advance tax, or self-assessment tax that is missing or wrongly reflected can reduce the refund or lead to a demand later.
File the return after the deadline, and a late fee may apply. It may also mean losing the option to carry forward losses from shares, mutual funds, or business income, where the tax rules allow it.
Other July Compliance Dates To Watch
July is not only important for individual ITR filers. Employers, companies, banks, deductors, and other entities also have several TDS and Tax Collected at Source (TCS)-related compliance obligations during the month.
For many deductors, TDS deducted during June has to be deposited by July 7. July 15 involves reporting requirements for specified institutions and intermediaries. July 30 is relevant for certain challan-cum-statement filings related to tax deductions. July 31 is also the due date for quarterly TDS and TCS statements for the April-June quarter in several cases.
For individual taxpayers, the broader message is simple: do not treat return filing as a one-day task. Cross-check income, deductions, tax credits, and investment details before submitting the ITR. A careful return filed on time can reduce the chances of notices, refund delays, and avoidable tax disputes later.
FAQs
What does a scrutiny notice under Section 143(2) mean?
It means the Income Tax Department wants to examine certain details in a return more closely. It is not, by itself, a finding of tax evasion.
What should I do after receiving a scrutiny notice?
Check the notice on the e-filing portal, gather the papers asked for, and file the reply within the deadline mentioned there. Take professional help where the matter involves complex transactions or tax claims.
What happens if I miss the July 31 ITR deadline?
A late fee may apply. Delayed filing can also affect the carry-forward of eligible losses, such as capital losses or business losses.
