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Income Tax Return Filing FY 2025-26 Complete Guide

Relevant to Assessment Year 2026-27

ITR Filing (Salary)
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Overview

INCOME TAX RETURN FILING — FOR FINANCIAL YEAR 2025-26

RELEVANT TO ASSESSMENT YEAR 2026-27

All income accruing or arising, whether directly or indirectly, through or from any business connection in India, or through or from any property in India, or through or from any asset or source of income in India, or through the transfer of a capital asset situate in India are taxable as per Indian income tax laws i.e. the Income tax Act, 1961 (hereinafter referred as the "ACT").

Taxability of overseas income (such as rental income, capital gains, bank interest, dividends, etc.) arising out of your assets outside of India (such as bank accounts, stock market/securities, life insurance policies, loans, company deposits, debentures, bonds, residential properties, etc.) depends on residential status in India.

Residential Status

RESIDENTIAL STATUS OF AN INDIVIDUAL AS PER INCOME TAX ACT, 1961

Categories Of Person Based On Residence In India Condition For Residential Status - As Per Section 6 Of The Act TAX INCIDENCE - As Per Section 5 Of The Act (Means what will be included in his total income)
Resident and Ordinary Resident in India (ROR) Two basic conditions:

Condition 1 - any individual who resides in India for 182 days or more in the relevant Financial Year.

Condition 2- is in India cumulatively for 60 days or more in the relevant financial year and for 365 days or more in the preceding 4 financial Years.

Exception:

1. For an individual who is Indian Citizen leaving India either for employment outside India or as crew member only condition 1 is applicable.

2. For an individual, Indian Citizen or Person of Indian Origin visiting India and who being outside India, comes to visit India, for condition 2, 60 days has been substituted with 120 days, if Total income (excluding foreign income) is exceeding 15 lakhs.

Deemed Resident: an individual, being a Citizen of India not liable to tax in any other country and total income (excluding foreign income) is exceeding 15 lakhs.

An individual being a resident and not satisfy RNOR conditions, then he is a ROR.

All income from whatever source derived which—

(a) is received or is deemed to be received in India in such year by or on behalf of such person; or

(b) accrues or arises or is deemed to accrue or arise to him in India during such year; or

(c) accrues or arises to him outside India during such year

Global Income of ROR is taxable

Resident but Nor Ordinary Resident in India (RNOR) Three Additional conditions:

Condition 1 - If an individual has been a non-resident in India in 9 out of 10 years preceding that financial year.

Condition 2- If one has been in India for less than or equal to 729 days out of 7 years preceding that financial year,

Condition 3- If an individual who is an Indian citizen or persons of Indian Origin having taxable income as per Act (excluding foreign income) more than Rs 15 lakhs

All income from whatever source derived which -

(a) is received or is deemed to be received in India in such year by or on behalf of such person; or

(b) accrues or arises or is deemed to accrue or arise to him in India during such year; or

Note: Income which accrues or arises to him outside India shall not be so included unless it is derived from a business controlled in or a profession set up in India.

Non- Resident (NRI) If an individual does not satisfy the basic conditions of 182 days rule and 60/120 days & 365 days rule and not a deemed resident then the individual is Non- Resident in India. All income from whatever source derived which—

(a) is received or is deemed to be received in India in such year by or on behalf of such person; OR

(b) accrues or arises or is deemed to accrue or arise to him in India during such year.

ITR Forms & Due Dates

Basic Rules for Filing Income Tax Return for Financial Year 2025-26 comprising of period from 01.04.2025 to 31.03.2026 also referred to as Assessment Year
(AY) 2026-27

Category of Taxpayer Applicable ITR Form When Required to File Return Due Date for Filing
Resident Individual ITR-1 (Sahaj) Total income upto Rs.50 lakh and having Income from Salaries, one house property, other sources (Interest etc.), long-term capital gains under section 112A up to Rs. 1.25 lakh, and agricultural income upto Rs.5 thousand. [Not for an individual who is either Director in a company or has invested in unlisted equity shares or in cases where TDS has been deducted u/s 194N or if income-tax is deferred on ESOP or has assets (including financial interest in any entity) located outside India] 31st July 2026
Individual / HUF (Not covered by ITR 1/ITR 2) ITR-3 / ITR-4 ITR-3: Individuals / HUFs having income from business or profession (profits/losses). ITR-4: For Resident Individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs.50 lakh and having income from business and profession under presumptive taxation scheme.
Individual / HUF ITR-2 Individuals / HUFs with no business income and Income exceeding ₹50 lakh from income from salary, capital gains more than Rs. 1.25 lakh, more than one house property income, hold foreign assets. 31st July 2026
Companies (Domestic) ITR-6 All companies except those claiming exemptions under Section 11 (charitable trusts). 31st October 2026
Assessee Claiming Exemption under Section 11 ITR-7 Company, Charitable/religious trusts and institutions, political parties, NGO / Other Entities institutions claiming exemption. 31st October 2026
Firms / LLPs / AOPs, BOIs, cooperative societies, and other entities ITR-5 / ITR-4 Partnership firms / LLPs AOPs, BOIs, cooperative societies, and other entities (excluding companies). ITR-4 can be filed when the Firm has opted for presumptive taxation scheme (not available for LLPs).
NRIs ITR-2 / ITR-3 Income from salary, capital gains, property, or business/profession in India.
Any person who already filed his return Same as original ITR Form or change, if any When there is any Revised Return. 31st March 2027
Any person As applicable When there is any Belated/late Return i.e. after the relevant due date. 31st December 2026
Any person whether filed his return earlier or not ITR-U with Same ITR Form When there is any Updated Return — time limit to update the return is 4 years from the end of the relevant Assessment Year. 31st March 2031
Any person As applicable Transfer Pricing cases. 30th November 2026
Special Provisions

Additional Rules for Specific Persons

Relevant Income Tax Rule Provision of said Due Dates
139(4A) Every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes, or of income being voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2, shall furnish a return of such income of the previous year, if the total income without giving effect to the provisions of sections 11 and 12 exceeds the maximum amount which is not chargeable to income-tax. 31st July of assessment year

If accounts are required to be audited under this Act or under any other law for the time being in force — 31st October of assessment year

If required to furnish a report u/s 92E, the 30th November of assessment year
139(4B) Every political party shall furnish a return of such income of the previous year, if the total without giving effect to the provisions of section 13A exceeds the maximum amount which is not chargeable to income-tax. Same as above
139(4C) Every— (a) research association referred to in clause (21) of section 10; (b) news agency referred to in clause (22B) of section 10; (c) association or institution referred to in clause (23A) of section 10; (ca) person referred to in clause (23AAA) of section 10; (d) institution referred to in clause (23B) of section 10; (e) fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (iiiab) or sub-clause (iiiad) or sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (iiiac) or sub-clause (iiiae) or sub-clause (via) of clause (23C) of section 10; (ea) Mutual Fund referred to in clause (23D) of section 10; (eb) securitisation trust referred to in clause (23DA) of section 10; (eba) Investor Protection Fund referred to in clause (23EC) or clause (23ED) of section 10; (ebb) Core Settlement Guarantee Fund referred to in clause (23EE) of section 10; (ec) venture capital company or venture capital fund referred to in clause (23FB) of section 10; (f) trade union referred to in sub-clause (a) or association referred to in sub-clause (b) of clause (24) of section 10; (fa) Board or Authority referred to in clause (29A) of section 10; (g) body or authority or Board or Trust or Commission (by whatever name called) referred to in clause (46) of section 10; (h) infrastructure debt fund referred to in clause (47) of section 10 — if the total income in respect of which such research association, news agency, association or institution, etc. is assessable, without giving effect to the provisions of section 10, exceeds the maximum amount which is not chargeable to income-tax, shall furnish a return of such income of the previous year. As applicable
139(4D) Every university, college or other institution referred to in clause (ii) and clause (iii) of sub-section (1) of section 35, shall furnish the return in respect of its income or loss in every previous year. As applicable
139(4E) Every business trust, shall furnish the return of its income in respect of its income or loss in every previous year. As applicable
139(4F) Every investment fund referred to in section 115UB, shall furnish the return of income in respect of its income or loss in every previous year. As applicable
Non-Filing Consequences

CONSEQUENCES FOR NON-FILING OF INCOME TAX RETURN BY THE DUE DATES

⏱ Interest for Delay in Filing / Payment
Section 234A — Delay in filing ITR: 1% per month (or part of month) on tax payable from due date till actual filing date.
Section 234B — Non-payment / short payment of Advance Tax: 1% per month from 1st April to end of FY on amount of tax due on total income.
Section 234C — Deferment / shortfall in installments of advance tax: 1% per month for 3 months on shortfall in each installment.
Section 220(2) — Interest on tax not paid even after notice under Section 156: 1% per month from due date to payment date.
💰 Penalty for Defaults
Section 271 — Concealment / Under-reporting: Up to 100% of tax evaded if concealment of income; lower percentage for under-reporting.
Section 271F — Late filing of ITR: Fixed penalty ₹5,000 if filed after due date (except in cases where total income ≤ ₹5 lakh).
Section 272A(2) — Default in furnishing TDS / TCS statements: Penalty ₹10/day of default (max as per rules).
Section 270A — Misreporting / under-reporting: Tax-related penalty.
⚖️ Prosecution for Serious Offences
Section 276C — Willful attempt to evade tax: Imprisonment 6 months to 7 years + fine.
Section 276CC — Failure to file ITR / furnish return or pay tax: Imprisonment 3 months to 2 years + fine.
Section 277 — False statements / failure to produce documents: Imprisonment 6 months to 7 years + fine.
Key Provisions

NOTE

Belated Return Provision — After the Due Date

If any person who is required to file the return as mentioned above but has not furnished a return within the time allowed may furnish the return for the relevant financial year at any time before three months prior to the end of the relevant assessment year i.e. 31.12.2026 or before the completion of the assessment, whichever is earlier along with interest / late fees / penalties.

Revised Return

If any person, having furnished a return by the due date or belated return, discovers any omission or any wrong statement therein, he may furnish a revised return up to the end of the relevant assessment year i.e. 31.12.2027 or before the completion of the assessment, whichever is earlier.

Prohibition on Return Filing

Return filing is not allowed after three months prior to the end of the relevant assessment year i.e. after 31.12.2026 except in cases where taxes are payable. In such cases taxes are payable along with additional 25% of taxes in the Updated income return u/s 139(8A) of the Income tax Act, 1961.

FAQs

Frequently Asked Questions

The due date to file the Income Tax Return for Financial Year 2025-26 (Assessment Year 2026-27) for individuals and HUFs who are not required to get their accounts audited is 31 July 2026.
The applicable ITR form depends on the type of taxpayer and income source. ITR-1 is generally for salaried individuals with income up to ₹50 lakh, while ITR-2, ITR-3, ITR-5, ITR-6, and ITR-7 apply to other categories such as business income, companies, or trusts.
Any individual whose total income exceeds the basic exemption limit under the Income Tax Act, 1961 must file an Income Tax Return. Filing may also be mandatory for individuals with foreign assets, foreign income, or certain high-value transactions.
If a taxpayer fails to file the return before the due date, they may be liable to interest under Section 234A, late filing fees under Section 234F, and other penalties and Fee as per the Income Tax Act, 1961.
Yes, if a taxpayer finds any error or omission in the filed return, they can submit a Revised Return under Section 139(5) before 31 December 2026 or before completion of assessment, whichever is earlier.