Filing your Income Tax Return (ITR) is not just a legal obligation — it's a financial discipline that helps you claim refunds, build credit history, and stay compliant with the law. Whether you're a salaried employee, freelancer, or business owner, this guide covers everything you need to know about ITR filing for Financial Year 2025-26 (Assessment Year 2026-27).
Who Should File ITR?
Filing an Income Tax Return is mandatory for certain categories of taxpayers under the Income Tax Act, 1961. Even if you fall below the taxable income threshold, filing ITR has significant benefits like faster loan approvals, visa processing, and claiming TDS refunds.
You must file ITR if you fall under any of these categories:
- Individuals with gross income above ₹2.5 lakh (₹3 lakh for senior citizens, ₹5 lakh for super senior citizens) before any deductions under the old regime
- Salaried employees whose employer has deducted TDS — even if no additional tax is due, you should file to claim potential refunds
- Freelancers and self-employed professionals with income exceeding the basic exemption limit
- Business owners — sole proprietors, partnership firms, LLPs, and companies must file regardless of profit or loss
- NRIs with income earned in India such as rental income, interest on NRO accounts, or capital gains from Indian investments
- Individuals who want to claim TDS refund — if excess TDS has been deducted, you can claim it back only by filing ITR
- Persons with foreign assets or foreign income — mandatory filing even if total income is below the exemption limit
- Individuals who deposited more than ₹1 crore in bank accounts or spent more than ₹2 lakh on foreign travel during the financial year
- Anyone who paid more than ₹1 lakh in electricity bills during the financial year
Pro Tip: Even if your income is below the exemption limit, filing a NIL return helps in building financial credibility for loans, credit cards, and visa applications. Banks often require 2-3 years of ITR for home and business loan approvals.
Important Deadlines for FY 2025-26
Missing the ITR filing deadline can result in penalties, interest on unpaid tax, and loss of certain deductions. Here are the key dates to keep in mind:
| Category | Due Date | Penalty if Missed |
|---|---|---|
| Individuals & HUF (non-audit) | July 31, 2026 | ₹1,000 – ₹5,000 |
| Businesses requiring audit | September 30, 2026 | ₹5,000 + interest |
| Transfer pricing cases | November 30, 2026 | ₹5,000 + interest |
| Belated return | December 31, 2026 | ₹1,000 – ₹5,000 |
| Revised return | December 31, 2026 | No additional penalty |
Important: Under Section 234A, interest at 1% per month is charged on any unpaid tax amount from the due date until the actual filing date. Additionally, under Section 234F, a late filing fee of ₹5,000 (₹1,000 if income is under ₹5 lakh) applies if you miss the deadline.
New Regime vs Old Regime — Which to Choose?
One of the most important decisions during ITR filing is choosing between the Old Tax Regime and the New Tax Regime. From FY 2023-24 onwards, the new regime is the default option — you need to actively opt for the old regime if it benefits you more.
| Parameter | Old Regime | New Regime |
|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 |
| Section 80C (PPF, ELSS, etc.) | Up to ₹1.5 lakh | Not available |
| Section 80D (Health Insurance) | Up to ₹75,000 | Not available |
| HRA Exemption | Available | Not available |
| Home Loan Interest (Sec 24b) | Up to ₹2 lakh | Not available |
| Tax Rebate (Sec 87A) | Up to ₹5 lakh income | Up to ₹7 lakh income |
| Best For | Heavy investors, home loan holders | Salaried with few deductions |
Our recommendation: If your total deductions under 80C, 80D, HRA, and home loan interest exceed ₹3.75 lakh, the old regime will likely save you more tax. For everyone else, the new regime with its lower slab rates and higher rebate threshold is usually more beneficial.
Not sure which regime saves you more? Use our free Income Tax Calculator to compare your tax liability under both regimes instantly.
Try Income Tax CalculatorDocuments Required for ITR Filing
Before you start filing your ITR, gather all the necessary documents. Having everything ready upfront makes the process smooth and ensures you don't miss any income sources or deductions.
Essential documents for all taxpayers:
- PAN Card — your primary tax identity number; must be linked with Aadhaar
- Aadhaar Card — mandatory for e-verification and linking with PAN
- Form 16 — TDS certificate issued by your employer showing salary details and tax deducted
- Form 16A / 16B / 16C — TDS certificates for non-salary income (interest, property sale, rent)
- Form 26AS / AIS (Annual Information Statement) — comprehensive tax statement showing all TDS, advance tax, and financial transactions reported to the IT department
- Bank statements — from all bank accounts showing interest earned (savings + FD), and to reconcile your income
- Salary slips — for verifying HRA, special allowances, and other exemptions
For claiming deductions:
- Section 80C proofs — PPF passbook, ELSS statements, life insurance premium receipts, tuition fee receipts, home loan principal repayment certificate
- Section 80D proofs — health insurance premium receipts for self, spouse, children, and parents
- Home loan certificate — interest and principal repayment statement from the bank (for Section 24b and 80C)
- Rent receipts / Rental agreement — for claiming HRA exemption (needed if annual rent exceeds ₹1 lakh)
- Donation receipts — for Section 80G deductions (ensure the organization has valid 80G registration)
- Education loan interest certificate — for Section 80E deduction
- NPS contribution statement — for additional ₹50,000 deduction under Section 80CCD(1B)
For capital gains:
- Stock trading statements — P&L reports and contract notes from your broker (Zerodha, Groww, Angel One, etc.)
- Mutual fund statements — capital gains statement from CAMS/KFintech or your AMC
- Property sale/purchase documents — sale deed, stamp duty receipt, registration charges
- Crypto/virtual digital asset statements — transaction records for reporting under Section 115BBH
Step-by-Step ITR Filing Process
Here's the complete process to file your ITR online on the Income Tax e-filing portal:
Log in to the Income Tax Portal
Visit incometax.gov.in and log in with your PAN as the user ID. If you're a first-time filer, register using your PAN and verify with Aadhaar OTP. Once logged in, navigate to e-File → Income Tax Returns → File Income Tax Return.
Select the Correct ITR Form
Choosing the right form is critical — filing with the wrong form will result in a defective return notice:
- ITR-1 (Sahaj) — Salaried individuals with income up to ₹50 lakh, one house property, and other sources (interest, etc.)
- ITR-2 — Individuals with capital gains, multiple house properties, foreign income, or income above ₹50 lakh
- ITR-3 — Individuals with business or professional income
- ITR-4 (Sugam) — Presumptive taxation scheme under Section 44AD/44ADA/44AE
Fill in Income Details & Deductions
The portal pre-fills many details from Form 26AS and AIS. Verify all pre-filled information carefully — especially salary details, TDS amounts, and bank interest. Add any income sources that are missing. Enter your deductions under Section 80C, 80D, 80G, and other applicable sections. The portal will automatically calculate your tax liability under the chosen regime.
Pay Any Remaining Tax Due
If the portal shows tax due after accounting for TDS and advance tax, pay it using the e-Pay Tax facility on the portal before submitting. You can pay via net banking, debit card, UPI, or NEFT/RTGS. Keep the challan receipt (BSR code and challan number) handy — you'll need to enter these details in the ITR form.
Verify & Submit Your ITR
After submitting, you must verify your ITR within 30 days — otherwise it's treated as not filed. The easiest method is Aadhaar OTP e-verification (instant). Other options include net banking, DSC, or sending a signed ITR-V to CPC Bengaluru. After successful verification, you'll receive an acknowledgment (ITR-V) via email. Keep this safe — it's your proof of filing.
Common Mistakes to Avoid
Even experienced taxpayers make these errors. Avoiding them can save you from notices, penalties, and unnecessary stress:
Not verifying ITR after filing — This is the #1 mistake. Your return is incomplete until verified within 30 days. Thousands of returns are invalidated every year because taxpayers forget this step.
Choosing the wrong ITR form — Filing ITR-1 when you have capital gains, or ITR-4 without qualifying for presumptive taxation, will result in a defective return notice from CPC.
Not reporting all income sources — Interest from savings accounts, FDs, mutual fund dividends, freelance income, and rental income must all be reported. The IT department has data from banks, brokers, and registrars — mismatches trigger automated notices.
Not reporting capital gains from stocks/mutual funds — Even LTCG below ₹1.25 lakh (exempt) must be reported. Short-term gains, F&O trading profits, and crypto gains are commonly missed.
Not reconciling Form 26AS with AIS — Check both statements thoroughly. If there's a TDS mismatch, contact your deductor to get it corrected before filing.
Claiming wrong deductions — Claiming 80C deductions in the new regime, overclaiming HRA without proper rent receipts, or claiming 80D for premiums paid in cash (not allowed) are common issues.
Frequently Asked Questions
What is the last date to file ITR for FY 2025-26?
The deadline for individual taxpayers (non-audit cases) is July 31, 2026. For businesses requiring audit, the deadline is September 30, 2026. Belated returns can be filed until December 31, 2026, with a late fee of up to ₹5,000.
Which is better — old tax regime or new tax regime for FY 2025-26?
The new tax regime offers lower slab rates and a standard deduction of ₹75,000 but removes most deductions like 80C, 80D, and HRA. The old regime is better if your total deductions exceed ₹3-4 lakh. Use a tax calculator to compare your liability under both regimes before choosing.
Can I file ITR myself or do I need a CA?
Salaried individuals with straightforward income can file ITR-1 themselves on the Income Tax portal. However, if you have capital gains, business income, foreign income, or multiple income sources, hiring a CA ensures accuracy and maximum tax savings. Professional filing starts at ₹1,499.
Need Help Filing Your ITR?
Our experienced CAs file your ITR accurately, maximize deductions, and ensure 100% compliance. Professional ITR filing starts at just ₹1,499.