ITR Filing FY 2025-26 (AY 2026-27): The Complete Guide

The Income Tax Return season for Financial Year 2025-26 (Assessment Year 2026-27) is approaching, and this year’s filing is anything but routine. Budget 2025 redrew the new tax regime slabs, raised the rebate threshold, introduced Section 194T, and tightened reporting on foreign assets and crypto.

This guide is the playbook we walk our own clients through — written for salaried professionals, business owners, NRIs, traders, and freelancers who want to file correctly the first time.

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What’s actually new for AY 2026-27

Before we touch forms or due dates, get these five changes on your radar. Most filing errors this season will trace back to one of them.

1. New regime is now the default. If you do not actively opt for the old regime (Form 10-IEA for business income, simple selection for salaried), the new regime applies automatically.
2. Revised new-regime slabs. Zero tax up to ₹4,00,000 of income; the marginal slabs now run 5% / 10% / 15% / 20% / 25% / 30% with the top slab kicking in above ₹24 lakh.
3. Higher Section 87A rebate. Salaried individuals with taxable income up to ₹12,75,000 (after the ₹75,000 standard deduction) effectively pay zero tax under the new regime.
4. Section 194T on partner payments. If you are a partner drawing remuneration or interest above ₹20,000 from a firm, expect TDS at 10% — and reconcile your 26AS / AIS carefully before filing.
5. Stricter foreign asset and VDA reporting. Schedule FA and Schedule VDA (crypto) are under closer scrutiny. Non-disclosure attracts penalty under the Black Money Act, not just the Income Tax Act.

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Which ITR form should you file?

Picking the wrong form is the most common reason returns get treated as defective under Section 139(9). Use this matrix:

Form	Who should use it	Common pitfalls
ITR-1 (Sahaj)	Resident individual, total income ≤ ₹50L, only salary, one house property, other sources, agri income ≤ ₹5,000	Cannot use if you have capital gains, foreign assets, are a director, or own unlisted shares
ITR-2	Individual / HUF without business income — includes capital gains, multiple properties, foreign income, NRI status	Most NRIs and equity investors file here
ITR-3	Individual / HUF with business or professional income — including F&O traders, intraday traders, freelancers under presumptive	Tax audit applicability under Sec 44AB needs separate evaluation
ITR-4 (Sugam)	Presumptive income under 44AD / 44ADA / 44AE, total income ≤ ₹50L	Cannot use if turnover crosses ₹2 Cr (44AD) or gross receipts cross ₹50L (44ADA)
ITR-5	Partnership firms, LLPs, AOPs, BOIs	—
ITR-6	Companies (other than those claiming exemption u/s 11)	—
ITR-7	Trusts, political parties, charitable institutions	—

If you are unsure between ITR-2 and ITR-3, the question is binary: do you have any business or professional income in FY 2025-26? Yes → ITR-3. No → ITR-2.

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Due dates that matter

Taxpayer category	Original due date
Individuals / HUFs not requiring audit	31 July 2026
Businesses requiring audit (Sec 44AB)	31 October 2026
Transfer pricing cases (Form 3CEB)	30 November 2026
Belated / revised return	31 December 2026
Updated return (ITR-U)	Up to 48 months from end of AY

Late filing under Section 234F costs ₹1,000 (income ≤ ₹5L) or ₹5,000 (income > ₹5L), plus you lose the ability to carry forward business and capital losses. Don’t.

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Documents checklist

Pull these together before you log into the portal — half the pain of filing comes from hunting for documents mid-flow.

Identity & access

• PAN, Aadhaar (linked to PAN — mandatory)
• Bank account details for refund (with IFSC)
• Mobile number linked to Aadhaar for OTP

Income

• Form 16 (salary) and Form 16A (TDS on other income)
• Form 26AS, AIS, and TIS — download from the portal and reconcile
• Capital gains statements from broker / mutual fund / registrar
• Interest certificates from banks and post office
• Rental income agreements and municipal tax receipts

Deductions (old regime)

• 80C investments (PPF, ELSS, life insurance, principal repayment, tuition fees)
• 80D health insurance premium receipts
• 80E education loan interest certificate
• Home loan interest certificate (Sec 24)
• Donation receipts with 80G certificate

Special cases

• Schedule FA: foreign bank accounts, equity, immovable property, signing authority
• Schedule VDA: every crypto transaction (date, cost, sale value)
• Schedule AL: applicable if total income > ₹50 lakh

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The five mistakes we see most often

1. Not reconciling AIS with your books. The AIS now shows everything from mutual fund SIP redemptions to credit card spends above ₹10L. If you don’t address discrepancies before filing, you’ll get a 143(1) intimation later.
2. Choosing the wrong regime. Salaried taxpayers with significant 80C + home loan interest + HRA almost always still benefit from the old regime. We’ve covered the math in New vs Old Tax Regime FY 2025-26.
3. Missing F&O turnover audit threshold. F&O is business income. Tax audit under Sec 44AB applies based on turnover and profit margin — see our F&O traders filing guide.
4. Skipping Schedule FA as an NRI returnee. If you returned to India and became Resident in FY 2025-26, your foreign assets must be disclosed. We unpack this in our NRI ITR guide.
5. Filing before 15 June. AIS and TDS data continue to populate until early June. Filing too early often means filing a revised return later.

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How we file returns at our firm

We don’t treat ITR filing as a data-entry exercise. For every client we:

• Pull AIS / TIS / 26AS and reconcile to bank statements line by line
• Run both regimes side by side, document the rationale, and store it for your records
• Validate Schedule FA / VDA / AL applicability before submission
• Pre-empt 143(1) and 143(2) triggers — the cost of a clean filing is always less than responding to a notice

If you want our team to handle your AY 2026-27 return — salaried, business, NRI, F&O, capital gains, all of it — share your documents through our secure portal and we will scope a fixed fee within 24 hours. See our Income Tax Return filing service for the document checklist, process, and how to get started.

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Frequently Asked Questions

Is the new tax regime mandatory for AY 2026-27?

No. The new regime is the default, but you can opt for the old regime. Salaried taxpayers can switch annually; those with business income must file Form 10-IEA and the choice has lock-in implications.

Up to what income is there zero tax under the new regime?

For salaried individuals, up to ₹12,75,000 of total income (after the ₹75,000 standard deduction) attracts zero tax due to the enhanced Section 87A rebate.

What if I missed the 31 July 2026 deadline?

You can file a belated return up to 31 December 2026 with late fee under Section 234F and interest under 234A. You’ll lose the right to carry forward business and capital losses, but house property loss carry-forward is still allowed.

Do I need to file a return if my income is below the basic exemption limit?

You may still need to file if you (a) deposited > ₹1 Cr in current accounts, (b) spent > ₹2L on foreign travel, (c) paid > ₹1L electricity bill, (d) hold foreign assets, or (e) have TDS deducted that you want refunded.

Can I revise my return after filing?

Yes, you can file a revised return up to 31 December 2026 or before completion of assessment, whichever is earlier. There’s no limit on the number of revisions.

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Related reading

• New vs Old Tax Regime FY 2025-26: Which One Should You Choose?
• Compliance Calendar FY 2025-26: Every Due Date in One Place
• TDS Rate Chart FY 2025-26
• Need a quick check on what’s pending? Use our free Compliance Checker.