ITR Filing FY 2025-26s covers income you earned between 1 April 2025 and 31 March 2026. Consequently, Assessment Year (AY) 2026–27 is the year when the Income Tax Department assesses that income — i.e., from 1 April 2026 onwards.

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Why You Should File ITR Even If It Is Not Mandatory

Beyond legal compliance, filing your income tax return (ITR) unlocks several financial benefits. Specifically, here is why every taxpayer should file:

Claim TDS Refund — Your employer or bank may have deducted TDS on your income. You can only recover that money by filing your ITR and claiming the income tax refund through the portal.
Carry Forward Losses — Capital losses, F&O trading losses, and business losses can offset future gains only if you file your ITR on time. Missing the deadline permanently kills the loss carryforward benefit.
Loan Approvals — Banks and NBFCs require your ITR as primary income proof for home loans, car loans, and business credit. A clean filing history, therefore, directly accelerates loan processing.
Visa Processing — The US, UK, Canada, and Schengen embassies ask for 2–3 years of ITR receipts during visa applications. Without them, your visa can be delayed or rejected.
Avoid Scrutiny Notices — The Income Tax Department’s system auto-reports high-value transactions. Filing preemptively reduces the risk of receiving a scrutiny notice under Section 143(2).
Build Your Financial Record — A verified income trail through annual ITR filings builds credibility with lenders, landlords, and government tenders.

Who Must File ITR for AY 2026–27?

Section 139(1) of the Income Tax Act 1961 mandates ITR filing for specific categories of taxpayers. Additionally, the Income Tax Department enforces mandatory filing based on high-value transaction thresholds — even when income appears below the taxable limit.

Taxpayer Category	Mandatory Filing Condition
Salaried Individuals	Gross income exceeds ₹3 lakh (new regime) or ₹2.5 lakh (old regime)
Self-Employed / Freelancers	Any taxable professional or business income above exemption limit
All Companies and Firms	Mandatory regardless of profit or loss
High-Value Transaction Holders	Bank deposits > ₹1 crore; foreign travel > ₹2 lakh; electricity bill > ₹1 lakh; business turnover > ₹60 lakh; savings account deposits > ₹50 lakh; TDS/TCS aggregate ≥ ₹25,000
Foreign Asset Holders	Residents holding assets abroad or signing authority in foreign accounts (Schedule FA mandatory)
Loss Carryforward Seekers	Anyone wishing to carry forward capital losses or business losses to future years under Section 80
TDS Refund Claimants	Taxpayers from whom TDS was deducted but total income is below the taxable limit
NRIs with Indian Income	Rental income, capital gains on Indian assets, or salary from Indian employer

Key Figures at a Glance for FY 2025–26

Parameter	Rate / Value
LTCG Rate on Listed Equity / Equity MFs	12.5%
Annual LTCG Exemption under Section 112A	₹1.25 lakh
STCG Rate on Listed Equity	20%
TDS Threshold on FD Interest (raised)	₹1 lakh per year
Section 87A Rebate (new regime)	Up to ₹25,000 for income ≤ ₹12 lakh
Capital Loss Carryforward Period	8 years (requires on-time ITR filing)
Updated Return (ITR-U) Window	48 months from end of AY (up to 31 Mar 2031)
Revised Return Deadline (Budget 2026 update)	Extended to 31 March (was 31 December)
Health and Education Cess	4% on tax + surcharge

ITR Filing Due Dates for FY 2025–26 (AY 2026–27)

Budget 2026 introduced important changes to the ITR filing due date calendar. As a result, different taxpayer categories now follow staggered deadlines. Understanding your specific deadline is therefore critical to avoiding the Section 234F late filing fee.

Taxpayer Category	ITR Form	Due Date	Key Notes
Salaried Individuals / HUF (No Audit)	ITR-1, ITR-2	31 Jul 2026	Standard ITR filing last date for most individuals
Non-Audit Business & Professionals	ITR-3, ITR-4	31 Aug 2026	Extended from 31 Jul — new for FY 2025–26 via Budget 2026
Tax Audit Cases (Section 44AB)	ITR-3, 5, 6	31 Oct 2026	Audit report (Form 3CA/3CB/3CD) due by 30 Sep 2026
Transfer Pricing Cases	ITR-3, 5, 6	30 Nov 2026	Form 3CEB report due 31 Oct 2026
Trusts and Institutions (Audit)	ITR-7	31 Oct 2026	Sections 139(4A/B/C/D)
Belated Return (missed original deadline)	Any	31 Dec 2026	Late fee under Section 234F + interest under Section 234A
Revised Return (correcting errors)	Any	31 Mar 2027	Extended from 31 Dec under Budget 2026
Updated Return — ITR-U	ITR-U	31 Mar 2031	Up to 48 months from end of AY; additional tax of 25–50% applies

Income Tax Slabs FY 2025–26: Old Regime vs New Tax Regime

For FY 2025–26 (AY 2026–27), you can choose between the old tax regime (with deductions and exemptions) and the new tax regime (with lower slab rates but fewer deductions). You must make this choice at the time of ITR filing — salaried individuals can switch each year.

New Tax Regime — Income Tax Slabs FY 2025–26

Income Range	Tax Rate
Up to ₹4,00,000	Nil
₹4,00,001 – ₹8,00,000	5%
₹8,00,001 – ₹12,00,000	10%
₹12,00,001 – ₹16,00,000	15%
₹16,00,001 – ₹20,00,000	20%
₹20,00,001 – ₹24,00,000	25%
Above ₹24,00,000	30%

Under the new regime, Section 87A rebate eliminates tax entirely for individuals earning up to ₹12 lakh. Consequently, effective income tax for many salaried employees becomes zero — but only if they file their ITR on time.

Old Tax Regime — Income Tax Slabs FY 2025–26

Income Range	Tax Rate
Up to ₹2,50,000	Nil
₹2,50,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
Above ₹10,00,000	30%

The old regime benefits taxpayers who actively claim Section 80C (up to ₹1.5 lakh), Section 80D (health insurance premium), HRA exemption, home loan interest deduction under Section 24, and other deductions. Use an income tax calculator to compare both regimes before deciding.

Which ITR Form Should You File for AY 2026–27?

The CBDT notifies all seven ITR forms for each assessment year. For AY 2026–27, all forms are available on the income tax portal. Selecting the wrong ITR form results in a defective return notice, which can delay your income tax refund and trigger unnecessary follow-up from the Income Tax Department.

ITR Form Selection Guide

ITR Form	Who Should File	Critical Condition
ITR-1 (Sahaj)	Resident individuals only	Income ≤ ₹50 lakh; salary/pension + one house property + interest income + equity LTCG u/s 112A ≤ ₹1.25L
ITR-2	Individuals and HUFs (no business income)	Capital gains (any amount), multiple house properties, foreign income, NRIs, RNORs, company directors, ESOP holders, unlisted equity investors
ITR-3	Business and Profession	Proprietary businesses, F&O trading, partners in firms; both audit and non-audit cases
ITR-4 (Sugam)	Presumptive income (Sections 44AD/44ADA/44AE)	Resident individual/HUF/firm (non-LLP); total income ≤ ₹50 lakh; gross receipts ≤ ₹50 lakh
ITR-5	Firms, LLPs, AOPs, BOIs	Partnership firms, LLPs, local authorities, cooperative societies
ITR-6	All Companies	Pvt Ltd, OPC, Public Ltd; mandatory tax audit; not claiming exemption under Section 11
ITR-7	Trusts and Institutions	Charitable/religious trusts (139(4A)), political parties (139(4B)), scientific research associations, investment funds

NRI Alert: Non-Resident Indians cannot use ITR-1 or ITR-4. NRIs must file using ITR-2 (no business income) or ITR-3 (business or professional income in India). Using the wrong form as an NRI is one of the most common and costly filing mistakes.

Deductions You Can Claim — Section 80C, 80D, HRA and More

Under the old tax regime, you can significantly reduce your taxable income by claiming the following deductions. However, these deductions are not available under the new tax regime (except a few standard deductions).

Section 80C — Up to ₹1.5 Lakh Deduction

Section 80C allows the largest deduction available to individual taxpayers. Eligible investments and expenses include:

PPF (Public Provident Fund) contributions
ELSS (Equity Linked Saving Scheme) mutual fund investments — also offers potential capital appreciation
LIC premium payments
EPF (Employee Provident Fund) contributions (employee’s share)
Home loan principal repayment
NSC (National Savings Certificate), SCSS, Sukanya Samriddhi Yojana
Children’s tuition fees (up to 2 children)
5-year tax-saving fixed deposits

Section 80D — Health Insurance Premium Deduction

Up to ₹25,000 for health insurance premiums for self, spouse, and dependent children
Up to ₹25,000 additional for parents’ health insurance premium (₹50,000 if parents are senior citizens)
Therefore, you can claim up to ₹1 lakh in total under Section 80D in the best scenario

HRA Exemption for Salaried Employees

If you pay house rent and your employer provides HRA, you can claim an HRA exemption on the lower of:

Actual HRA received
50% of salary (metro cities) or 40% of salary (non-metro)
Rent paid minus 10% of salary

Section 24(b) — Home Loan Interest Deduction

You can claim up to ₹2 lakh per year as a deduction on home loan interest for a self-occupied property. For a let-out property, there is no upper limit, but losses are capped at ₹2 lakh for set-off against salary income.

Other Important Deductions

Section	Deduction	Limit
80E	Interest on education loan	No upper limit; first 8 years
80G	Donations to eligible funds	50% or 100% depending on the fund
80TTA	Interest on savings account (non-senior citizens)	Up to ₹10,000
80TTB	Interest on deposits — senior citizens only	Up to ₹50,000
80CCD(1B)	NPS additional contribution	Up to ₹50,000 (over and above 80C)

What Business Owners Must Keep Ready

Profit & Loss Account and Balance Sheet for FY 2025–26
Books of accounts (mandatory if turnover exceeds ₹1 crore for business or ₹50 lakh for professionals)
GST returns (GSTR-1, GSTR-3B) — reconcile with income in ITR
TDS certificates received (Form 16A / 16B)
Advance tax payment challans (Challan 280) — due dates: 15 Jun, 15 Sep, 15 Dec, 15 Mar
Tax audit report Form 3CA/3CB/3CD — due 30 Sep 2026 (for Oct audit cases)
Fixed asset register for depreciation calculation

ITR Filing FY 2025-26 for NRIs and Expatriates

If you are a Non-Resident Indian (NRI) or an expatriate with income in India, you must navigate additional layers of compliance — including residential status determination, DTAA (Double Taxation Avoidance Agreement) claims, TDS at higher rates, and repatriation documentation.

When Must an NRI File an ITR?

Rental income from Indian property above the basic exemption limit
Capital gains from Indian stocks, mutual funds, or immovable property
Salary income from an Indian employer
TDS deducted on Indian income and you want an income tax refund
Carry forward of capital losses from Indian investments
Foreign asset declaration obligations under Schedule FA

DTAA Benefits — Avoiding Double Taxation

India maintains Double Taxation Avoidance Agreements with 90+ countries, including UAE, USA, UK, Singapore, Canada, Australia, and Mauritius. Consequently, qualifying NRIs can reduce or eliminate Indian tax on capital gains, dividend income, royalties, and interest income through DTAA provisions.

To claim DTAA benefits, you need:

A valid Tax Residency Certificate (TRC) from your country of residence
Form 10F filed with the Indian Income Tax Department
An NRO/NRE bank account statement for the relevant period
Lower Deduction Certificate (applied under Section 197) to reduce TDS at source on high-value transactions

Missed ITR Deadline? Belated Income Tax Return, Revised Return and ITR-U

Missing the ITR filing FY 2025-26 last date does not mean you have permanently lost your chance to file. Instead, the Income Tax Department provides several options — each with its own set of consequences and deadlines.

Option 1 — Belated Return (Section 139(4)): By 31 December 2026

If you miss your original due date, you can still file a belated return under Section 139(4) by 31 December 2026. However, this comes with significant costs:

ITR Late filing fee under Section 234F: ₹1,000 if total income ≤ ₹5 lakh; ₹5,000 if income > ₹5 lakh
Interest under Section 234A: 1% per month on unpaid tax from the original due date
No loss carryforward: You permanently forfeit the right to carry forward capital losses, business losses, and most other losses
Regime lock-in: You cannot choose the old tax regime in a belated return

Option 2 — Revised Income Tax Return (Section 139(5)): By 31 March 2027

Already filed your return but discovered an error? You can correct it by filing a revised Income tax return under Section 139(5) up to 31 March 2027 — an extension from the earlier 31 December deadline, introduced via Budget 2026. Importantly, there is no limit on the number of revisions within this window, and no penalty applies.

Option 3 — Updated Return — ITR-U (Section 139(8A)): Up to 31 March 2031

Even if you missed both the original and belated return windows, the Updated Return (ITR-U) gives you up to 48 months from the end of the assessment year to report additional income. For AY 2026–27, this window extends to 31 March 2031. However, note that:

An additional tax of 25–50% on tax + interest applies
You cannot use ITR-U to claim additional deductions, refunds, or reduce existing tax liability
You can file whether or not you originally filed a return

Common ITR Filing Mistakes to Avoid for AY 2026–27

Even experienced taxpayers make avoidable errors during income tax return filing. Furthermore, these mistakes lead to defective return notices, delayed income tax refunds, and scrutiny notices. Here are the most critical mistakes to avoid:

Mistake	Consequence	Correct Action
Using Tab 2 (Income Tax Act 2025) instead of Tab 1	Invalid filing for FY 2025–26	Always use Tab 1 (Income Tax Act 1961 / AY 2026–27) for FY 2025–26
Selecting the wrong ITR form (e.g., ITR-1 when ITR-2 is needed)	Defective return notice; refund rejection	Check all income sources before selecting the form
Not reconciling AIS and Form 26AS with Form 16	Mismatch triggers scrutiny notice under Section 143(2)	Download AIS, compare all entries, submit feedback for errors before filing
Claiming TDS that does not appear in Form 26AS	Refund rejected or return selected for scrutiny	Reconcile every TDS certificate against Form 26AS before claiming
Not e-verifying within 30 days of submission	Return treated as not filed — completely invalid	E-verify immediately using Aadhaar OTP or net banking after submission
Bank account not pre-validated on the portal	Income tax refund cannot be credited	Pre-validate the bank account on incometax.gov.in before filing
Declaring FD interest at maturity instead of annually	Incorrect income year, TDS mismatch, notice from IT dept	Declare FD interest on annual accrual basis under “Income from Other Sources”
Missing capital gains and filing ITR-1 instead of ITR-2	Defective return; if you sold any MF units or stocks, ITR-1 is invalid	Always use ITR-2 if you have any STCG or LTCG, regardless of the amount
Not checking Section 87A rebate eligibility	Overpaying tax unnecessarily	Confirm Section 87A rebate (up to ₹25,000) is auto-applied for income ≤ ₹12 lakh under new regime
Filing F&O losses without a tax audit	Income Tax Department may reject F&O loss carryforward	Consult a CA — F&O income is treated as non-speculative business income requiring ITR-3

Consequences of Not Filing Your ITR

Failing to file your income tax return by the due date triggers a cascade of financial and legal consequences. More importantly, some of these consequences are permanent and irreversible.

Consequence	Provision	Impact
Late Filing Fee	Section 234F	₹1,000 (income ≤ ₹5L) or ₹5,000 (income > ₹5L)
Interest on Unpaid Tax	Section 234A	1% per month from ITR due date on outstanding tax amount
Loss of TDS Refund	—	Cannot claim income tax refund for that assessment year
No Loss Carryforward	Section 80	STCL, LTCL, business losses and F&O losses cannot be carried forward
Prosecution	Section 276CC	Tax dues > ₹25,000 — imprisonment ranging from 3 months to 7 years
Loan Application Rejection	—	Banks use ITR as income proof; delayed filing directly impacts home loan and car loan eligibility
Visa Complications	—	US, UK, Canada, and Schengen embassies require 2–3 years of ITR for visa processing
Income Tax Scrutiny Notice	Section 143(2)	High-value transactions auto-reported to Income Tax Department; non-filing triggers notice
Penalty for Tax Evasion	Section 270A	Up to 200% of tax sought to be evaded in cases of under-reporting

Frequently Asked Questions (FAQs)

What is the ITR filing due date for salaried employees for FY 2025-26?

The ITR filing due date for salaried individuals filing ITR-1 or ITR-2 is 31 July 2026. This deadline remains unchanged from previous years for this category. Furthermore, if you miss it, you can still file a belated return by 31 December 2026, subject to late fees.

What is the income tax return last date 2026 for freelancers?

Freelancers and self-employed professionals who file under the presumptive scheme (Section 44ADA) using ITR-4 now have a new income tax return last date of 31 August 2026 — extended by one month under Budget 2026.

What is the revised return last date for FY 2025-26?

The revised return last date for FY 2025-26 (AY 2026-27) is 31 March 2027 — extended from the earlier 31 December 2026 deadline. You can revise your return multiple times before this date without paying any extra fee.

What happens if I miss the July 31 deadline?

If you miss the 31 July ITR filing due date, you can still file a belated return under Section 139(4) by 31 December 2026. However, a late filing fee of ₹1,000 or ₹5,000 applies under Section 234F, interest accrues under Section 234A on any unpaid tax, and you permanently lose the ability to carry forward business losses and capital losses.

Can I claim Section 80C deductions in a belated return?

In a belated return, the Income Tax Department restricts certain deductions and exemptions. Additionally, you lose carry-forward of business losses and capital losses. To ensure full availability of all Section 80C to 80U deductions, always file within the original ITR filing due date.

How do I check if my employer has filed TDS returns correctly?

Download your Form 26AS from the e-filing portal and cross-check it against your Form 16. The TDS return due date for Q4 of FY 2025-26 is 31 May 2026, so your employer’s TDS data should reflect in Form 26AS shortly after that. If you spot a mismatch, contact your employer immediately before you file.

What is the difference between a revised return and an updated return?

A revised return (Section 139(5)) lets you correct errors in your original ITR at no extra cost, and you can still claim refunds and carry-forward losses. By contrast, an updated return (Section 139(8A)) applies after the revised return deadline, charges additional tax of 25%–70%, does not allow refund claims, and cannot be revised once filed.

What is advance tax and do I need to pay it?

Advance tax is tax paid in instalments during the financial year on income that is not subject to TDS. If your total tax liability (after TDS) exceeds ₹10,000 for FY 2025-26, you must pay advance tax in four instalments. Not doing so attracts interest under Section 234B and Section 234C — both of which increase your overall tax outgo.

Can I use Form 15G or Form 15H to avoid TDS on my FD interest?

Yes. If your total income is below the taxable limit, submit Form 15G (for individuals under 60) or Form 15H (for senior citizens) to your bank at the start of the financial year. This prevents the bank from deducting TDS on your fixed deposit and savings account interest. Nevertheless, you must still file your Income Tax Return if your gross income (before deductions) crosses the basic exemption limit.

Is the July 31 ITR filing due date extended every year?

Not automatically. The government extends deadlines through official notifications, and it does not do so every year. Moreover, extensions — when they happen — are announced only a few weeks before the deadline. Always check the official e-filing portal at https://www.incometax.gov.in for the latest notifications rather than assuming an extension will occur.

What is the ITR-U (Updated Return) and when should I file it?

File ITR-U when you need to declare income that you omitted in your original, belated, or revised return, and the deadline for a revised return (31 March 2027) has already passed. ITR-U is available until 31 March 2031 for AY 2026-27. However, since the additional tax increases from 25% to 70% the longer you wait, file it as early as possible if you need to use this route.

What is the Cost Inflation Index (CII) for FY 2025-26?

The Cost Inflation Index (CII) for FY 2025-26 is 363 (as notified by the government). You use CII to compute the indexed cost of acquisition for long-term capital assets — which directly reduces your taxable capital gains tax liability. For example, if you sell a property or debt mutual fund held for more than 2–3 years, indexation significantly lowers the capital gains amount you report in your ITR.

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ITR Filing FY 2025-26