Complete Guide to ITR Filing for FY 2025-26

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 – 31 March 2026):

• Your gross total income exceeds the basic exemption limit (₹2.5 lakh under old regime, ₹4 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 ₹1 crore+ in current accounts, spent ₹2 lakh+ on foreign travel, or paid ₹1 lakh+ in electricity bills
• Your business turnover exceeds ₹60 lakh or professional receipts exceed ₹10 lakh
• You have TDS/TCS deducted during the year (even if income is below taxable limit — you need to file to claim refund)

Which ITR Form Should You Use?

• ITR-1 (Sahaj): Salaried individuals with income up to ₹50 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 ₹50 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 — Individuals, HUFs, and businesses not requiring audit
• 31st October 2026 — Businesses requiring tax audit under Section 44AB
• 30th November 2026 — Companies with transfer pricing obligations
• 31st December 2026 — Belated return / revised return deadline

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 — savings, FD, RD)
• Investment proofs: PPF, ELSS, LIC, NPS statements
• Home loan interest certificate (Section 24b)
• Rent receipts + landlord PAN (if HRA claimed, rent > ₹1 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

1. Log in to the income tax e-filing portal at incometax.gov.in
2. Go to e-File → Income Tax Returns → File Income Tax Return
3. Select the Assessment Year (2026-27 for FY 2025-26)
4. Choose Filing Mode — Online (recommended) or Offline (using JSON utility)
5. Select the correct ITR form based on your income sources
6. Pre-filled data will load automatically — verify salary, TDS, interest income against your Form 16 and 26AS
7. Enter deductions under Chapter VI-A (80C, 80D, 80G, etc.) if using old regime
8. Verify tax computation — check if tax payable matches or refund is due
9. Pay any outstanding tax via challan before submitting
10. Submit and e-verify using Aadhaar OTP, net banking, or DSC (must verify within 30 days)

New vs Old Regime — 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 ₹3.75 lakh
• Choose Old Regime if: Your total deductions exceed ₹3.75 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 — mismatches trigger notices
• Forgetting to report all bank accounts — even zero-balance or dormant accounts
• Missing capital gains from mutual fund switches — STP and switch transactions are taxable events
• Not reporting exempt income — agricultural income, LTCG under ₹1.25 lakh still needs to be disclosed
• Choosing the wrong ITR form — using ITR-1 when you have capital gains will get your return flagged as defective
• Not e-verifying after filing — your return is invalid until e-verified within 30 days