Published: May 2026 ยท 8 min read ยท Updated for AY 2026-27
Who Needs to File an ITR?
Income tax return filing is mandatory if any of the following apply to you for FY 2025-26 (1 April 2025 โ 31 March 2026):
- Your gross total income exceeds the basic exemption limit (โน2.5 lakh under old regime, โน4 lakh under new regime before deductions)
- You want to claim a tax refund (TDS deducted exceeds your actual liability)
- You have foreign assets, foreign income, or are a signing authority in a foreign account
- You deposited โน1 crore+ in current accounts, spent โน2 lakh+ on foreign travel, or paid โน1 lakh+ in electricity bills
- Your business turnover exceeds โน60 lakh or professional receipts exceed โน10 lakh
- You have TDS/TCS deducted during the year (even if income is below taxable limit โ you need to file to claim refund)
Tip: Even if your income is below the taxable limit, filing a return creates a financial record that helps with loan applications, visa processing, and as address/income proof.
Which ITR Form Should You Use?
- ITR-1 (Sahaj): Salaried individuals with income up to โน50 lakh from salary, one house property, interest, and family pension. Cannot be used if you have capital gains, foreign income, or are a director in a company.
- ITR-2: Individuals and HUFs with income from salary, house property, capital gains, foreign income, or assets. No business/professional income.
- ITR-3: Individuals and HUFs with income from business or profession (including freelancers, consultants, and partners in firms).
- ITR-4 (Sugam): Individuals, HUFs, and firms opting for presumptive taxation under Section 44AD/44ADA/44AE with income up to โน50 lakh.
- ITR-5: Partnership firms, LLPs, AOPs, and BOIs.
- ITR-6: Companies (other than those claiming exemption under Section 11).
- ITR-7: Trusts, political parties, and institutions claiming exemption.
Key Deadlines for FY 2025-26 (AY 2026-27)
- 31st July 2026 โ Individuals, HUFs, and businesses not requiring audit
- 31st October 2026 โ Businesses requiring tax audit under Section 44AB
- 30th November 2026 โ Companies with transfer pricing obligations
- 31st December 2026 โ Belated return / revised return deadline
Late filing penalty: โน5,000 if filed after 31st July but before 31st December (โน1,000 if total income is below โน5 lakh). Plus interest under Section 234A on any outstanding tax.
Documents You Need
For Salaried Individuals
- Form 16 from employer(s)
- Salary slips (for cross-verification)
- Form 26AS / AIS / TIS from the income tax portal
- Bank statements (all accounts โ savings, FD, RD)
- Investment proofs: PPF, ELSS, LIC, NPS statements
- Home loan interest certificate (Section 24b)
- Rent receipts + landlord PAN (if HRA claimed, rent > โน1 lakh/year)
- Health insurance premium receipts (Section 80D)
- Donation receipts (Section 80G)
Additional for Capital Gains
- Broker statements / contract notes (equity, MF, crypto)
- Property sale deed / purchase deed
- Stamp duty valuation
- Reinvestment proofs (Section 54/54EC/54F)
Step-by-Step Filing Process
- Log in to the income tax e-filing portal at incometax.gov.in
- Go to e-File โ Income Tax Returns โ File Income Tax Return
- Select the Assessment Year (2026-27 for FY 2025-26)
- Choose Filing Mode โ Online (recommended) or Offline (using JSON utility)
- Select the correct ITR form based on your income sources
- Pre-filled data will load automatically โ verify salary, TDS, interest income against your Form 16 and 26AS
- Enter deductions under Chapter VI-A (80C, 80D, 80G, etc.) if using old regime
- Verify tax computation โ check if tax payable matches or refund is due
- Pay any outstanding tax via challan before submitting
- Submit and e-verify using Aadhaar OTP, net banking, or DSC (must verify within 30 days)
New vs Old Regime โ Quick Decision Framework
From FY 2023-24 onwards, the new regime is the default. You must actively opt for the old regime if you want to claim deductions.
- Choose New Regime if: Your total deductions (80C + 80D + HRA + home loan interest + others) are less than โน3.75 lakh
- Choose Old Regime if: Your total deductions exceed โน3.75 lakh (especially if you have a home loan, high HRA, and max 80C)
Use our free tax calculator to compare both regimes with your actual numbers.
Common Mistakes to Avoid
- Not reconciling Form 26AS / AIS โ mismatches trigger notices
- Forgetting to report all bank accounts โ even zero-balance or dormant accounts
- Missing capital gains from mutual fund switches โ STP and switch transactions are taxable events
- Not reporting exempt income โ agricultural income, LTCG under โน1.25 lakh still needs to be disclosed
- Choosing the wrong ITR form โ using ITR-1 when you have capital gains will get your return flagged as defective
- Not e-verifying after filing โ your return is invalid until e-verified within 30 days
Need help? Our expert consulting team can file your return accurately with regime comparison, deduction optimisation, and post-filing support. Get a free quote โ