The Indian taxation system has undergone significant structural shifts as of the Finance Act 2025. Filing an Income Tax Return (ITR) is no longer merely a statutory requirement but a critical financial exercise that ensures eligibility for loans, visa processing, and seamless carry-forward of investment losses. With the New Tax Regime now serving as the default framework, understanding the nuances of the Assessment Year (AY) 2026-27 is vital. This comprehensive resource outlines the latest tax slabs, mandatory documentation, and a granular step-by-step procedure to navigate the official e-filing portal with precision and compliance.

Understanding the Tax Slabs for FY 2025-26 (AY 2026-27)

For the current financial year, taxpayers must choose between the New Tax Regime (Default) and the Old Tax Regime. The Finance Act 2025 has further enhanced the New Regime to provide more relief to middle-income earners.

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New Tax Regime Slabs (Default)

The New Tax Regime offers lower tax rates but requires the taxpayer to forego most exemptions like HRA, LTA, and Section 80C.

Income Range (₹)

Tax Rate

Up to 4,00,000

Nil

4,00,001 – 8,00,000

8,00,001 – 12,00,000

10%

12,00,001 – 16,00,000

15%

16,00,001 – 20,00,000

20%

20,00,001 – 24,00,000

25%

Above 24,00,000

30%

Key Benefits in 2025-26:

Standard Deduction: Increased to ₹75,000 for salaried individuals and pensioners.
Rebate under Section 87A: Taxable income up to ₹12,00,000 is now eligible for a full rebate, effectively making it Zero Tax for those earning up to ₹12.75 Lakh (including standard deduction).

Old Tax Regime Slabs

The Old Tax Regime remains optional and is beneficial for those with high investments in tax-saving instruments.

Income Range (₹)

Tax Rate

Up to 2,50,000

Nil

2,50,001 – 5,00,000

5,00,001 – 10,00,000

20%

Above 10,00,000

30%

Pre-filing Checklist: Essential Documents

Before initiating the filing process, gather the following documents to ensure the data entered matches the records available with the Income Tax Department.

PAN and Aadhaar: Must be linked. Filing is not permitted if the PAN is inoperative.
Form 16: Issued by your employer, detailing your salary break-up and TDS deducted.
Annual Information Statement (AIS) & TIS: These are the most critical documents in 2025. The AIS captures all financial transactions like stock market trades, savings interest, and high-value purchases.
Form 26AS: A consolidated tax credit statement showing taxes deducted at source by banks or clients.
Bank Statements: To declare interest income from savings accounts and fixed deposits.
Investment Proofs: If opting for the Old Regime, keep receipts for LIC, PPF, ELSS, and Health Insurance (Section 80D) ready.

Step-by-Step Guide to Filing ITR Online

The Income Tax Department has optimized the e-filing portal (incometax.gov.in) for a faster, user-centric experience. Follow these steps for a successful submission.

Visit the official Income Tax e-Filing Portal.
Log in using your PAN (User ID) and password.
Navigate to 'e-File' > 'Income Tax Returns' > 'File Income Tax Return'.

Step 2: Select Assessment Year and Status

Select Assessment Year 2026-27 (for income earned in FY 2025-26).
Choose the mode of filing as 'Online' and click continue.
Select your status as 'Individual'.

Step 3: Choosing the Correct ITR Form

Selecting the wrong form can lead to a defective return notice. Refer to the table below:

Form Type

Applicability

ITR-1 (Sahaj)

Residents with income up to ₹50 Lakh from Salary, One House Property, and Other Sources.

ITR-2

Individuals/HUFs not having business income but having Capital Gains or Foreign Assets.

ITR-3

Individuals having income from a business or Profession (including F&O trading).

ITR-4 (Sugam)

Individuals/HUFs opting for Presumptive Taxation (Section 44AD/44ADA).

Step 4: Validate Pre-filled Data

The portal will now show sections for Personal Information, Gross Total Income, and Tax Payments.

Verify AIS/TIS data: Ensure the salary and interest income match your AIS.
Confirm Tax Regime: Since the New Regime is the default, you must explicitly select 'Opt-out' if you wish to file under the Old Regime.

Step 5: Tax Computation and Payment

The system will automatically compute your tax liability based on the slabs.
If any tax is due, you can pay it online via e-Pay Tax using Net Banking or UPI.
Once the Total Tax Liability becomes nil or paid, proceed to 'Preview Return'.

Step 6: E-Verification (The Final Step)

Your return is not filed until it is verified.

You have 30 days from the date of submission to e-verify.
The most common method is Aadhaar OTP. Alternatively, you can use Net Banking or EVC via ATM.

Key Changes to Note in 2025-2026

The 2025 updates have introduced specific reporting requirements that taxpayers must be aware of:

Capital Gains Uniformity: Long-term capital gains (LTCG) on most financial assets are now taxed at a flat 12.5%, with an exemption limit of ₹1.25 Lakh for equity-oriented assets.
Updated Returns (ITR-U): The timeline for filing an updated return has been extended to 48 months from the end of the relevant assessment year, provided additional tax is paid.
Dividend & Buyback Tax: Income from share buybacks is now treated as dividend income and taxed at your applicable slab rate.

Common Errors to Avoid

Mismatch with AIS: If you forget to report an FD interest mentioned in your AIS, you will likely receive a notice for Information Mismatch.
Bank Account Pre-validation: To receive a refund, your bank account must be pre-validated on the portal and linked with your PAN.
Claiming Wrong Deductions: Do not claim 80C or HRA if you have stayed in the New Tax Regime, as these will be disallowed automatically.
Reporting Exempt Income: Even if your income is exempt (like Agricultural income up to ₹5,000), it must be reported in the 'Exempt Income' schedule.

Conclusion

Filing your Income Tax Return in 2025-26 has become significantly more data-driven. With the integration of AIS and the simplified New Tax Regime, most of the process is now automated. However, the responsibility of verifying the accuracy of pre-filled data rests solely with the taxpayer. By choosing the correct ITR form and ensuring timely e-verification, you can maintain a clean financial record and avoid the penalties associated with late filing or misreporting.

Frequently Asked Questions (FAQs)

What is the last date to file ITR for FY 2025-26?

For individual taxpayers not requiring an audit, the deadline is typically July 31, 2026. However, for 2025, the government has historically provided extensions if portal upgrades are underway.

Can I file ITR if my income is below ₹4 Lakh?

Yes. While you may not have a tax liability, filing a Nil Return is beneficial for building a financial history for future loans or visa applications.

Is the Standard Deduction available in the Old Regime?

Yes. In the Old Regime, the standard deduction is ₹50,000, whereas in the New Regime, it has been increased to ₹75,000 for the current year.

What happens if I miss the ITR filing deadline?

You can file a Belated Return until December 31st of the assessment year. However, a late fee of up to ₹5,000 (₹1,000 if income is below ₹5 Lakh) will be applicable under Section 234F.

Is it mandatory to link Aadhaar with PAN for ITR filing?

Yes. Without linking, your PAN becomes inoperative, and you cannot file your return or receive tax refunds.

Can I switch between the New and Old tax regimes every year?

Salaried individuals without business income can choose between regimes every year. Those with business or professional income (ITR-3 or ITR-4) can generally only switch back to the Old Regime once in their lifetime.

How do I check the status of my tax refund?

Once filed and verified, you can track your refund status on the e-filing portal under 'e-File' > 'Income Tax Returns' > 'View Filed Returns'.

What is AIS and why is it important?

The Annual Information Statement (AIS) is a comprehensive view of all your financial transactions. The Income Tax Department uses this to cross-verify the income you declare in your ITR.

Do I need to send a physical copy of ITR-V to Bengaluru?

Only if you do not e-verify via Aadhaar OTP or Net Banking. If you choose physical verification, you must mail the signed ITR-V to the Centralized Processing Centre (CPC) within 30 days.

Can I revise my ITR if I made a mistake?

Yes. You can file a Revised Return under Section 139(5) any time before the end of the relevant Assessment Year or before the completion of the assessment, whichever is earlier.

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How to File Income Tax Return (ITR) in India: 2025-26