Income Tax Return Filing Guide for FY 2025-26

Filing your income tax return (ITR) accurately and on time is one of the most fundamental compliance obligations for every taxpayer in India. Yet each year, thousands of individuals and businesses face penalties, notices, and missed refunds simply because they filed incorrectly or too late.

This guide covers everything you need to know about ITR filing for FY 2025-26 (Assessment Year 2026-27) — from choosing the right form to claiming every deduction you are entitled to.

Filing an ITR is mandatory if any of the following apply to you:

• Your gross total income exceeds the basic exemption limit (₹2.5 lakh for individuals below 60; ₹3 lakh for senior citizens aged 60–79; ₹5 lakh for super senior citizens aged 80 and above)
• You are a company or LLP, regardless of income or loss
• You wish to carry forward a loss to future years
• You hold foreign assets or have foreign income
• You are a resident with signing authority in a foreign account
• Your total sales, turnover, or gross receipts exceed ₹60 lakh (business) or ₹10 lakh (profession)
• You have deposited more than ₹1 crore in bank accounts, spent more than ₹2 lakh on foreign travel, or paid more than ₹1 lakh in electricity bills during the year

Even if your income is below the exemption limit, filing a return is advisable if you want to claim a refund of TDS deducted or apply for a visa or loan.

Selecting the wrong ITR form is one of the most common errors — it can render your return defective and require refiling.

Missing the due date costs you interest, penalties, and the ability to carry forward losses.

• 31st July 2026 — Non-audit cases: individuals, HUFs, firms not requiring audit
• 31st October 2026 — Audit cases: businesses and professionals requiring tax audit under Section 44AB
• 30th November 2026 — Transfer pricing cases: entities with international transactions requiring Form 3CEB
• 31st December 2026 — Belated return (with penalty of ₹5,000; ₹1,000 if income is below ₹5 lakh)

Filing a belated return means you cannot carry forward most losses (except house property loss). Interest under Section 234A accrues at 1% per month on the unpaid tax from the original due date.

Gathering the right documents before you start saves time and prevents errors:

For salaried individuals:

• Form 16 (Part A and Part B) from your employer
• Form 26AS and Annual Information Statement (AIS) from the income tax portal
• Bank statements for all accounts
• Home loan interest certificate (if applicable)
• Rent receipts (if claiming HRA)
• Investment proofs for Section 80C, 80D, 80G deductions

For business owners and professionals:

• Audited financial statements (if audit is applicable)
• Books of accounts (if maintained)
• GST returns filed during the year
• TDS certificates (Form 16A) from clients
• Details of all bank accounts held during the year

For investors:

• Capital gains statements from brokers (equity, mutual funds)
• Property sale/purchase documents
• Crypto transaction records (taxable as virtual digital assets at 30%)

Do not leave money on the table. These are the most commonly missed deductions:

Section 80C (up to ₹1.5 lakh): PPF, ELSS mutual funds, life insurance premiums, NSC, 5-year FD, tuition fees, principal repayment of home loan, Sukanya Samriddhi

Section 80D: Health insurance premiums — ₹25,000 for self/family; additional ₹25,000 for parents (₹50,000 if parents are senior citizens)

Section 24(b): Interest on home loan — up to ₹2 lakh per year for self-occupied property; no limit for let-out property

Section 80CCD(1B): Additional NPS contribution — up to ₹50,000 over and above the 80C limit

Section 80G: Donations to approved charitable institutions — 50% or 100% deduction depending on the organisation

Section 80TTA / 80TTB: Interest on savings accounts — ₹10,000 for individuals below 60; ₹50,000 for senior citizens (covers FD interest too)

Since FY 2020-21, taxpayers can choose between the old regime (with deductions) and the new regime (lower slab rates, no deductions). From FY 2023-24, the new regime became the default.

New regime tax slabs (FY 2025-26):

• Up to ₹3 lakh: Nil
• ₹3–7 lakh: 5%
• ₹7–10 lakh: 10%
• ₹10–12 lakh: 15%
• ₹12–15 lakh: 20%
• Above ₹15 lakh: 30%

The new regime offers a rebate under Section 87A making income up to ₹7 lakh effectively tax-free. However, if you have significant deductions (home loan interest, 80C investments, HRA), the old regime may still result in lower tax. Run the numbers both ways before deciding — or let a CA do it for you.

1. Not reconciling with Form 26AS and AIS The income tax department cross-checks your return against Form 26AS (TDS credits) and the Annual Information Statement (AIS). Any mismatch triggers a notice. Always verify that all TDS credits appear correctly before filing.

2. Forgetting to report all income Interest income from savings accounts, FDs, and post office schemes is taxable and must be reported. So is income from freelancing, rental income, and capital gains — even if TDS has been deducted.

3. Incorrect ITR form selection Using ITR-1 when you have capital gains, or ITR-4 when your business income exceeds the presumptive threshold, makes your return defective.

4. Not e-verifying the return Filing the return is only half the job. You must e-verify it within 30 days of filing (via Aadhaar OTP, net banking, or sending a signed ITR-V to CPC Bengaluru). Unverified returns are treated as not filed.

5. Missing the advance tax deadlines If your total tax liability exceeds ₹10,000 after TDS, you must pay advance tax in four instalments (15% by June 15, 45% by September 15, 75% by December 15, 100% by March 15). Shortfall attracts interest under Sections 234B and 234C.

Once you file and e-verify your return, the income tax department processes it and issues an intimation under Section 143(1). This intimation either confirms your return as filed, makes adjustments for arithmetic errors or incorrect claims, or raises a demand. Review it carefully — if you disagree with any adjustment, you can file a rectification request online.

If your return is selected for scrutiny, you will receive a notice under Section 143(2) within 6 months of the end of the assessment year. Respond promptly with supporting documents.

While simple salary returns (ITR-1) can be filed independently, engaging a Chartered Accountant is strongly recommended if you have:

• Business or professional income
• Capital gains from property, equity, or mutual funds
• Foreign income or foreign assets
• Multiple sources of income
• Received a notice from the income tax department
• Significant investments requiring tax planning

A CA not only ensures accurate filing but also identifies tax-saving opportunities you may have missed, and represents you in case of scrutiny or assessment proceedings.

Need help filing your income tax return for FY 2025-26? Contact AccentTax Consulting for a free consultation — our Chartered Accountants handle everything from ITR filing to tax planning and notice responses.