Essentials for Filing Income Tax Returns

Filing is entirely online and paperless - there is no physical return to submit at a local tax office. But knowing whether you are required to file, and what to send us, still trips people up every year.

Income Tax Returns - Over View

Income tax return forms range from ITR-1 to ITR-7, each meant for a different type of income or entity, with its own disclosure requirements. Returns are always filed for a Financial Year (April to March), regardless of whatever accounting year your business may otherwise follow.

If you are also weighing the New Tax Regime against the Old, that comparison is covered separately in our New Tax Regime vs Old guide. For common questions on TDS, slab rates, and what to disclose, see our Income Tax FAQs.

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

When Filing is Mandatory

Filing Voluntarily, Below the Exemption Limit

You are free to file a return even if your Gross Total Income falls below the basic exemption limit. We would actually recommend it - a filed return often doubles as proof of regular income, which comes up more often than people expect: applying for a Visa, or taking a Loan, are two common examples.

What You Need on Hand Before Filing Your Income Tax Return

Details of income from all sources, along with Form 16 / 16A / 16C wherever applicable. If you changed employers during the year, ensure you have submitted Form 122 to your new employer - this directly affects the TDS figures in your Form 16.

If the following were not already factored in by your employer or another deductor during tax deduction (for the period 1st April 2025 to 31st March 2026, unless noted):

• Home loan statement, to bifurcate interest and principal
• LIC policies - for self, spouse, and children
• Children's education fees
• Any investments, with nature specified
• Health insurance - self, spouse, children, and parents (bifurcated)
• Medical expenditure for parents, only if they are above 60 years
• Donation receipts
• Interest on a loan taken for higher education, for yourself or children
• Interest on all savings bank accounts (1st April 2025 to 31st March 2026) - for how this interest is taxed, see our article on Income Tax on FD & Savings Interest

Annual Information Statement (AIS)

The Income Tax Department maintains the Annual Information Statement - a comprehensive record of your financial transactions for the year, compiled from various sources at the department's end. It is worth checking your AIS before filing, since it often surfaces income or transactions that are easy to miss otherwise. This is particularly important if you hold RSUs or ESOPs, crypto assets, or have foreign income - these are areas where AIS mismatches are most common.

Consequences of Not Filing Before the Due Date

Interest Under Section 234A

Interest at 1% per month (or part of a month) is charged on the outstanding tax payable from the original due date until the date of actual filing. This accumulates every month the return remains unfiled and applies regardless of whether a late fee is also payable.

Loss of Carry-Forward of Losses

This is often the most costly consequence of missing the due date, yet the least visible. Business losses and capital losses (other than loss from house property) can be carried forward for up to eight years - but only if the original return is filed on or before the prescribed due date. A single day of delay permanently forfeits this right. House property loss is the only exception - it can be carried forward even in a belated return.

Late Fee - Section 234F

Section 234F imposes a late fee when a return that is required to be filed is submitted after the prescribed due date. It applies to belated returns under Section 139(4) and is separate from Section 234A interest. The fee is payable at the time of filing:

Belated Return - Section 139(4)

If the original due date is missed, a belated return can still be filed on or before 31st December 2026 for FY 2025-26. Section 234F late fee and Section 234A interest on unpaid tax both apply. The right to carry forward business and capital losses is lost permanently once the original due date passes.

Revised Return - Section 139(5)

A return already filed - whether original or belated - can be revised to correct any omission or wrong statement. Revising a return that was filed on time carries no late fee. Budget 2026 extended the revised return deadline from 31st December to 31st March of the assessment year, with a fee for the extended window. For FY 2025-26, the timelines are:

Tax Regime - Default and Opting Out

The New Tax Regime is the default regime from FY 2023-24 (AY 2024-25) onwards. If you want to continue under the Old Regime instead, you must submit your return before the due date while making that choice. Taxpayers filing ITR-1 or ITR-2 can switch between regimes each year directly in the return form. Taxpayers with business or professional income (ITR-3, ITR-4, ITR-5) must file Form 10-IEA on or before the due date - and the option to switch back to the New Regime can be exercised only once in a lifetime.

The full rules on opting out, Form 10-IEA compliance, and the lifetime switch-back restriction are covered in detail in our New Tax Regime vs Old guide.

Advance Tax for Tax Year 2026-27 (Income Tax Act, 2025)

Advance tax applies to any taxpayer whose estimated tax liability for the year - after TDS and TCS credits - exceeds ₹10,000. It is payable in four instalments during the financial year itself. Resident senior citizens (60 years and above) with no business or professional income are exempt from advance tax. For an overview of the Income Tax Act, 2025 and how it restructures provisions including advance tax, see our dedicated article.

Interest on Advance Tax Defaults

Updated Return - Section 139(8A)

After all regular filing windows close, the Updated Return (Form ITR-U) provides a last-resort mechanism to declare missed income, correct errors, or reduce carried-forward losses. It can be filed within 4 years from the end of the relevant assessment year. For example, if you missed filing ITR for AY 2022-23 (FY 2021-22), the last date to file an updated return is 31st March 2027.

ITR-U carries an additional tax burden that escalates with the delay in filing:

If you have foreign income, RSUs, or crypto holdings, ensure those are properly disclosed before filing - our articles on Foreign Income Tax Compliance, RSU Taxation, and Crypto Taxation cover those in detail.