Complete Guide to Income Tax Return (ITR) Filing for FY 2025-26

Filing your Income Tax Return (ITR) correctly and on time is one of the most important financial responsibilities for individuals, businesses, and Non-Profit Organisations (NPOs) in India.

Under the provisions of the Income-tax Act, 1961, timely filing ensures tax compliance, avoids penalties, and helps maintain financial transparency.

With evolving tax regulations, updated tax slabs, and stricter compliance requirements, understanding the ITR filing process for FY 2025-26 (AY 2026-27) is crucial to avoid penalties and notices.

This guide explains:

• Who needs to file ITR

• Types of ITR forms

• Documents required

• Important due dates

• Late filing consequences

• New vs Old tax regime

• Common mistakes to avoid

Who Should File Income Tax Return?

As per Section 139(1) of the Income-tax Act, 1961, filing an Income Tax Return is mandatory if:

• Your total income exceeds the basic exemption limit

• You are a company or partnership firm

• You wish to claim a tax refund

• You hold foreign assets or foreign income

• TDS or TCS has been deducted in your name

• You want to carry forward business or capital losses under Sections 72, 74, and 74A

• You are a trust or Non-Profit Organisation required to file return under Section 139(4A), 139(4C), or 139(4D)

Even if your income is below the taxable limit, filing ITR voluntarily helps in:

• Loan approvals

• Visa applications

• Financial credibility

• Claiming tax refunds

Types of ITR Forms for FY 2025-26

ITR-1 (Sahaj)

For resident individuals having:

• Income up to ₹50 lakh

• Income from salary/pension

• One house property

• Other sources

ITR-2

For individuals and HUFs having:

• Capital gains

• More than one house property

• Foreign assets or foreign income

• Income above ₹50 lakh

• Director in company or investment in unlisted shares

ITR-3

For individuals and HUFs having income from business or profession.

ITR-4 (Sugam)

For presumptive taxation under:

• Section 44AD – Businesses

• Section 44ADA – Professionals

• Section 44AE – Transport businesses

ITR-5

Applicable for:

• Partnership firms

• LLPs

• AOP / BOI

• Cooperative societies

• Artificial juridical persons

ITR-6

Applicable for companies other than those claiming exemption under Section 11.

ITR-7

Applicable for entities required to file return under:

• Section 139(4A) – Charitable trusts

• Section 139(4B) – Political parties

• Section 139(4C) – Certain institutions

• Section 139(4D) – Universities and colleges

Documents Required for ITR Filing

Identity Documents

• PAN Card

• Aadhaar Card

Income Documents

• Form 16 / Form 16A

• Salary slips

• Bank statements

• Interest certificates

Tax Information Statements

• Form 26AS

• AIS (Annual Information Statement)

• TIS (Taxpayer Information Summary)

Investment & Deduction Proofs

Supporting documents for deductions under:

• Section 80C

• Section 80D

• Section 80G

• Section 80CCD(1B)

• Section 80E

Capital Gain Documents

• Broker statements

• Property sale documents

• Capital gain statements

Business / Professional Documents

• GST returns

• Profit & Loss account

• Balance sheet

• Books of accounts

Important Due Dates for FY 2025-26 (AY 2026-27)

Individuals (Non-audit cases): 31 July

Businesses requiring audit: 31 October

Transfer pricing cases: 30 November

Consequences of Late Filing

Late filing fee under Section 234F:

• ₹5,000 if return filed after due date

• ₹1,000 if total income below ₹5 lakh

Interest may also be charged under:

• Section 234A – Delay in filing return

• Section 234B – Default in payment of advance tax

• Section 234C – Deferment of advance tax

New vs Old Tax Regime

Under Section 115BAC, taxpayers can choose between the new tax regime and the old tax regime.

New Tax Regime Slab Rates (FY 2025-26)

Up to ₹3,00,000 – Nil

₹3,00,001 – ₹6,00,000 – 5%

₹6,00,001 – ₹9,00,000 – 10%

₹9,00,001 – ₹12,00,000 – 15%

₹12,00,001 – ₹15,00,000 – 20%

Above ₹15,00,000 – 30%

Additional benefits:

• Standard deduction ₹50,000

• Rebate under Section 87A subject to conditions

Common Mistakes to Avoid While Filing ITR

• Mismatch between Form 26AS, AIS and ITR

• Not reporting bank interest income

• Incorrect capital gains calculation

• Claiming excess deductions

• Selecting wrong ITR form

• Not verifying the return

What Happens After Filing ITR?

1. E-verification of return (Aadhaar OTP / Net banking / DSC)

2. Processing by CPC Bengaluru

3. Refund issued if applicable

4. Possible scrutiny notice under Section 143(2)

Conclusion

Filing your Income Tax Return for FY 2025-26 (AY 2026-27) is an important compliance requirement. Whether you are a salaried individual, professional, business owner, or Non-Profit Organisation, timely and accurate filing helps avoid penalties and strengthens your financial profile.