Income tax return filing is the annual declaration of your income, deductions and tax paid to the Income Tax Department, filed on the e-filing portal at incometax.gov.in. October 2026 is a transition period: returns for income earned in FY 2025-26 (assessment year 2026-27) are still filed under the Income-tax Act, 1961, while the new Income-tax Act, 2025 applies from 1 April 2026 and will govern returns for tax year 2026-27 that fall due from July 2027. This page explains which form to use, which deadlines apply now and how belated, revised and updated returns work.
What is income tax return filing?
An income tax return (ITR) is the form in which a taxpayer reports total income for a year, claims deductions, computes tax and reconciles it with tax already paid through TDS, TCS and advance tax. You file it online, verify it (usually through Aadhaar OTP or net banking) and the Department processes it, issues a refund or raises a demand.
The law is changing underneath the process. The Income-tax Act, 2025 replaces the 1961 Act from 1 April 2026 and introduces the concept of a single 'tax year' in place of the 'previous year' and 'assessment year' pair. For this reason, the return you file in 2026 for income earned between 1 April 2025 and 31 March 2026 is still an AY 2026-27 return under the 1961 Act. The return for tax year 2026-27, the year that began on 1 April 2026, is the first under the 2025 Act and is not due until July 2027. The Income Tax portal indicates that forms for the new Act will be notified under the Income Tax Rules, 2026.
For individuals the new tax regime is the default, and you must opt out if you prefer the old regime with deductions. Taxpayers having business or professional income can opt out by the due date and, under the new regime provisions, can withdraw from the new regime only once, so the choice needs thought rather than a default click.
Filing is not only for people who owe tax. Many people file to claim refunds, carry forward losses, support loan or visa applications, or because they meet one of the conditions that make filing mandatory irrespective of income, such as holding foreign assets or having large bank deposits or electricity bills.
Who needs to file an income tax return?
You must file if your total income before deductions exceeds the basic exemption limit under the regime you follow, and also in the special cases the law lists. Typical categories are:
- Salaried employees with income above the exemption limit, or with income from other sources, capital gains or more than one house property
- Business owners and professionals, whether or not they have a profit, if they want to carry forward losses or are covered by audit rules
- Partnership firms, LLPs and companies, which must file every year regardless of profit or loss
- Persons with capital gains from shares, mutual funds, property or crypto assets
- Residents holding foreign assets or having signing authority in a foreign account
- People who want to claim a refund of excess TDS or advance tax
- Directors of companies and holders of unlisted equity shares, who are required to use specific ITR forms
- Non-residents with taxable income in India
Benefits of Income Tax Return (ITR) Filing
Refund of excess tax
If TDS or advance tax exceeds your liability, the only way to receive the difference is to file a return, preferably well before the due date.
Proof of income
Banks, visa officers and NBFCs ask for ITR acknowledgements and computation for loans and visas. A regular filing history is a strong credibility signal.
Carry forward of losses
Business losses and capital losses can be carried forward to later years only if the return is filed on time, so timely filing preserves a valuable tax asset.
Avoid late fee and interest
Filing on time prevents late filing fee and interest on unpaid tax, and keeps you out of the belated or updated return route.
Lower notice risk
A return that matches Form 26AS, the Annual Information Statement and the TIS has a much lower chance of generating a mismatch notice.
Which ITR form applies to you?
Choosing the wrong form is a frequent cause of a defective return notice. The forms in use for AY 2026-27 are ITR-1 to ITR-7. The following is a practical guide; the portal's 'Return / Forms applicable to me' page lists the exact conditions.
- ITR-1 (Sahaj): resident individuals with salary or pension, one house property and other simple income, within the prescribed income and asset limits
- ITR-2: individuals and HUFs with capital gains, more than one house property, foreign assets or income, or directorship, but no business or professional income
- ITR-3: individuals and HUFs with business or professional income who do not qualify for ITR-4, including partners in firms
- ITR-4 (Sugam): resident individuals, HUFs and firms (other than LLPs) opting for presumptive taxation of business or profession, subject to limits
- ITR-5: firms, LLPs, associations of persons and bodies of individuals
- ITR-6: companies other than those claiming exemption under the charitable or religious trust provisions
- ITR-7: trusts, political parties, institutions and other persons filing under specified sections
Documents required
Identity and access
- PAN linked with Aadhaar, and active e-filing login
- Mobile number and email registered on the portal
- Bank account details, pre-validated for refunds
- Digital Signature Certificate for companies and cases where it is required
Income documents
- Form 16 from employers and salary slips
- Form 26AS, Annual Information Statement (AIS) and Taxpayer Information Summary
- Interest certificates from banks and post office, dividend statements
- Capital gains statements from brokers and mutual fund registrars, and sale and purchase deeds for property
- Books of accounts, profit and loss account and balance sheet for business and professional income, or turnover details for presumptive filers
- Rent receipts, house property details and loan interest certificates
Deduction and tax payment proofs
- Proofs for deductions if you stay in the old regime, such as life insurance, ELSS, PPF, health insurance, home loan and donations
- Challans for advance tax and self-assessment tax
- Tax audit report and other audit forms where applicable
- Foreign asset and foreign income details, where relevant
Step-by-step ITR filing process
The process below applies to AY 2026-27 returns filed on the portal. Screens may change as the department prepares the forms for the Income-tax Act, 2025.
Collect and reconcile your data
Download Form 26AS and the AIS, and compare them with your Form 16, bank statements and broker statements. Mismatches should be corrected or explained before filing.
Select the correct ITR form
Use the form guide on the portal or the list above. Business income, capital gains, foreign assets and directorship each push you out of ITR-1.
Decide the regime
Compute tax under the new regime and under the old regime with deductions, and compare. Taxpayers with business income should remember the opt-out and withdrawal rules.
Log in and start the return
Choose the assessment year, filing type (original, revised, belated or updated) and mode. The portal pre-fills data from AIS and Form 26AS, but you remain responsible for accuracy.
Fill income, deductions and taxes paid
Enter each head of income, claim eligible deductions, add TDS, TCS and advance tax and compute self-assessment tax due. Pay the balance tax by challan before submission.
Submit and e-verify
Verify through Aadhaar OTP, net banking, bank account EVC or DSC. A return is treated as not filed until it is verified within the time allowed by law, so do not skip this step.
Track processing and respond to intimation
Watch for the intimation after processing, check refund status and bank validation, and reply to any mismatch or demand on the portal within the stated time.
Maintain records
Keep the acknowledgement, computation, proofs and supporting workings, because assessments and notices can relate to old years.
Government fees and late fee
There is no government fee to file a return. Charges arise only for delay, as late fee and interest. Figures below are those reported for the 1961 Act for AY 2026-27.
| Item | Amount | Note |
|---|---|---|
| Filing an ITR on time | No fee | Free on the e-filing portal |
| Late fee on belated return (total income up to ₹5 lakh) | ₹1,000 | Section 234F, old Act |
| Late fee on belated return (total income above ₹5 lakh) | ₹5,000 | Section 234F, old Act |
| Interest on tax due for delay | As per sections 234A, 234B and 234C | Calculated on unpaid tax and shortfall in advance tax |
Professional charges are quoted separately after reviewing your case. Government fees are paid directly to the authority. Tax payable is a separate amount and depends on your income and regime.
ITR due dates for AY 2026-27 and what applies now
Due dates depend on the category of taxpayer. The table shows the dates reported for AY 2026-27. As of mid-October 2026, the ordinary July and August dates for non-audit taxpayers have passed, so most such returns still pending are filed as belated returns up to 31 December 2026. For audit cases, the dates were reported as extended by CBDT; confirm on the portal before relying on them.
| Stage | Typical time |
|---|---|
| ITR-1 and ITR-2 (individuals, HUFs, no audit) | 31 July 2026 (passed) |
| ITR-3 and ITR-4 (non-audit business and professional cases) | 31 August 2026 (passed; extended from 31 July under the Finance Act, 2026 as reported) |
| Tax audit report (section 44AB) | 21 October 2026 as reported (originally 30 September 2026) |
| ITR for audit cases, companies, firms (not under transfer pricing) | 21 November 2026 as reported (originally 31 October 2026) |
| Transfer pricing cases (Form 3CEB and ITR) | 31 October 2026 for the report; 30 November 2026 for the return |
| Belated return | 31 December 2026 or before assessment completion, whichever is earlier |
| Revised return | Before 31 March 2027 or before assessment completion, whichever is earlier |
Belated, revised and updated returns
A belated return can be filed after the due date up to 31 December 2026 for AY 2026-27 (or before assessment completion), with late fee under section 234F. A revised return corrects mistakes in an original or belated return and must be filed before 31 March 2027 for this year, as proposed. An updated return (ITR-U) under section 139(8A) of the 1961 Act lets you file even after those windows within 48 months from the end of the relevant assessment year, but you must pay additional tax, you can file only one per year, and it cannot be used to reduce tax, increase a loss or increase a refund. Under the Income-tax Act, 2025, the corresponding provisions are in section 263: belated within 9 months from the end of the tax year, revised within 12 months, and updated within 48 months from the end of the financial year after the relevant tax year. Belated or revised returns for AY 2025-26 or earlier cannot be filed on or after 1 April 2026.
Compliance after filing
- Complete e-verification within the time allowed so the return is treated as validly filed
- Check the intimation after processing and reconcile it with your computation
- Pay any demand or file a rectification request if the department's computation differs
- Track refund status and ensure the bank account is pre-validated and linked to PAN
- Respond to AIS feedback and mismatch notices on the portal
- Keep supporting records for each year's return as per the retention period suggested by your adviser
- Pay advance tax in instalments if your estimated liability crosses the prescribed threshold
- File Form 10-IE or the regime-opt-out forms where required in the return process, and track the once-only withdrawal rule for business income
Income-tax Act, 1961 vs Income-tax Act, 2025: what changes for filers
| Point | Income-tax Act, 1961 | Income-tax Act, 2025 (from 1 April 2026) |
|---|---|---|
| Year concept | Previous year and assessment year | Single 'tax year' |
| Applies to | Returns for AY 2026-27 and earlier | Tax year 2026-27 onwards; returns due from July 2027 |
| Belated return | Section 139(4): by 31 December of the assessment year | Section 263(4): within 9 months from end of the tax year |
| Updated return | Section 139(8A) | Section 263(6): within 48 months from end of the financial year after the tax year |
| Default regime for individuals | New regime default; old regime on opt-out | New regime under section 202 with nil tax up to ₹4 lakh slab |
| Forms | ITR-1 to ITR-7 | To be notified under the Income Tax Rules, 2026 |
Common mistakes & rejection reasons
Wrong ITR form
Using ITR-1 despite capital gains, foreign assets or directorship leads to a defective return notice. Check the form conditions every year because they change.
Ignoring AIS and Form 26AS
Income shown in AIS but missing in the return generates mismatch notices. Reconcile before filing and add comments in AIS where figures are wrong.
Not e-verifying
A return that is submitted but not verified is not treated as filed. Complete verification the same day.
Choosing the regime without comparing
The new regime is the default but not always cheaper, especially for taxpayers with large deductions. Business-income taxpayers have restrictions on switching back, so compute both before choosing.
Missing bank validation
A refund is stuck when the bank account is not pre-validated or the name differs from PAN. Validate during filing.
Late filing and losing carry-forward
A belated return forfeits carry-forward of certain losses and attracts late fee. Even if tax is nil, file within time.
Penalties for non-compliance
Late filing attracts a late fee and interest on unpaid tax. Furnishing inaccurate particulars or concealing income can attract penalty and, in serious cases, prosecution. The exact penalty rates depend on the provision applied (the 1961 Act for AY 2026-27 and the 2025 Act afterwards), and we have not quoted figures beyond the verified late fee. Seek advice if you have received a notice.
| Default | Consequence | Provision |
|---|---|---|
| Late filing of return (income up to ₹5 lakh) | Late fee of ₹1,000 | Section 234F, Income-tax Act, 1961 |
| Late filing of return (income above ₹5 lakh) | Late fee of ₹5,000 | Section 234F, Income-tax Act, 1961 |
Practitioner tips
- Open the AIS before you open the return form. Starting from the department's own view of your income tells you what will be matched, and saves rework.
- For freelancers and small traders, check the presumptive scheme limits and the digital-receipts condition carefully. Many people file ITR-3 with full accounts when ITR-4 would have been enough, or the reverse.
- File well before the due date. The portal is slowest in the last few days, and a verification failure on the last day can push you into the belated window.
- If you spot an error after filing, revise within the window rather than waiting for the department's intimation. An updated return is costlier because of additional tax.
- Keep a one-page note each year recording the regime chosen and why. If you later decide to switch, the note shows you have followed the once-only rule for business income.
How Lawgical Guru helps
Form and regime selection
We identify the correct ITR form and compare tax under the new and old regimes before you decide.
Data reconciliation
We reconcile Form 26AS, AIS, bank and broker statements so that the return matches the department's records.
Return preparation and filing
We prepare the return, review computation, help with payment of balance tax and file and e-verify on the portal.
Belated and updated returns
If you have missed a due date, we advise on belated, revised or updated return options and the cost of each.
Related compliance
We coordinate with TDS return filing, GST return filing and accounting and bookkeeping so the books and the return agree.
Income Tax Return (ITR) Filing: frequently asked questions
What is the last date to file ITR for AY 2026-27?
It depends on the category. Reported dates are 31 July 2026 for ITR-1 and ITR-2, 31 August 2026 for non-audit ITR-3 and ITR-4, and 21 November 2026 for audit cases after a reported CBDT extension from 31 October. Belated returns can be filed up to 31 December 2026.
Which ITR form should I use as a freelancer or small business owner?
ITR-4 is for residents opting for presumptive taxation within limits. If you maintain full books, claim actual expenses or fall outside the presumptive limits, use ITR-3. Partners in firms and some other cases also use ITR-3. Check the portal's applicability page each year because conditions change.
Is the Income-tax Act, 2025 applicable for the return I file now?
Not yet. The 2025 Act applies from 1 April 2026, so it governs tax year 2026-27, with returns due from July 2027. The return you file now for income from 1 April 2025 to 31 March 2026 is an AY 2026-27 return under the 1961 Act.
Can I still file ITR after the due date?
Yes. For AY 2026-27 you can file a belated return up to 31 December 2026 (or before assessment completion), with a late fee of ₹1,000 if total income is up to ₹5 lakh and ₹5,000 otherwise, plus interest on unpaid tax. After that, an updated return may be possible.
What is an updated return (ITR-U)?
An updated return lets you report income you missed or correct a return within 48 months from the end of the relevant assessment year, on payment of additional tax. You can file only one per year and cannot use it to reduce tax, increase a loss or increase a refund.
Should I choose the old or new tax regime?
Compute both. The new regime is the default and has lower slab rates but few deductions, while the old regime allows deductions such as home loan interest, insurance and PPF. Taxpayers with business or professional income can opt out only by the due date and withdraw only once.
Is ITR filing mandatory if my income is below the exemption limit?
Not generally, but there are exceptions. You must file if you hold foreign assets, have specified high-value transactions, or meet other conditions listed in the law. You may also choose to file to claim a refund, carry forward losses or build financial records.
How do I e-verify my return?
Use Aadhaar OTP, net banking, a bank account or demat account EVC, or a Digital Signature Certificate on the e-filing portal. A return is treated as not filed until it is verified within the time permitted by law, so verify as soon as you submit.
What happens if I file the wrong ITR form?
The department can treat the return as defective and send a notice asking you to correct it within a stated time. If you do not, the return can be treated as invalid, which could expose you to late fee and penalty. File the correct form promptly.
Can a company or LLP skip filing a return if there is no profit?
No. Companies and LLPs must file a return every year, even with nil income or a loss. The same applies to firms. A loss return filed on time also preserves the right to carry forward certain losses, so filing has a financial benefit.
Reviewed by Satyam Gupta, Company Secretary (CS) & Advocate
8+ years of industry experience. This page was last reviewed on 16 October 2026 against the official sources below. Rules and fees change — confirm on the official portal before you apply.