Essentials for Filing Income Tax Returns
A practical walkthrough of who must file, by when, what to send us, and what late filing actually costs - for FY 2025-26 (AY 2026-27).
Filing is entirely online and paperless - there's no physical return to submit at a local tax office. But knowing whether you're required to file, and what to send us, still trips people up every year.
Direct vs Indirect Tax
Taxes in India fall into two broad categories. Direct tax is paid by you, directly, on your own income. Indirect tax is collected by someone else on your behalf and remitted to the government - GST being the most familiar example. Income tax falls under the direct tax category.
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're also weighing the New Tax Regime against the Old, that comparison is covered separately in our New Tax Regime vs Old guide.
Due Dates for FY 2025-26 (AY 2026-27)
| # | Category | Due Date |
|---|---|---|
| 1 | Assessees required to furnish a Transfer Pricing report under Section 92E | 30 November 2026 |
| 2 | Companies; entities with an audit requirement under Income Tax law or any other law; partners of a firm whose accounts are audited | 31 October 2026 |
| 3 | Business income, where audit is not applicable | 31 August 2026 |
| 4 | All other assessees | 31 August 2026 |
When Filing is Mandatory
Based on Income
- If your Gross Total Income - before claiming deductions under Sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA, or 54GB - exceeds the basic exemption limit, filing is compulsory.
Mandatory Regardless of Income, If Any of These Apply
- Electricity expenditure during the year exceeds ₹1,00,000
- Foreign travel expenditure exceeds ₹2,00,000, whether for yourself or anyone else
- Deposits exceeding ₹1 crore in aggregate across one or more current accounts with banks or co-operative banks
Additional Conditions (Notification No. 37/2022, 21 April 2022)
- Business turnover or gross receipts exceed ₹60 lakh in the previous year
- Gross receipts from a profession exceed ₹10 lakh in the previous year
- Aggregate TDS and TCS during the previous year is ₹25,000 or more
- Deposits in one or more savings bank accounts aggregate to ₹50 lakh or more during the previous year
Filing Voluntarily, Below the Exemption Limit
You're free to file a return even if your Gross Total Income falls below the basic exemption limit. We'd actually recommend it - a filed return often doubles as proof of regular income, which comes up more often than people expect: applying for a passport, or taking a loan, are two common examples.
What We Need From You
Details of income from all sources, along with Form-16/16A/16C wherever applicable. Please send these unlocked.
If the following weren't already factored in by your employer or another deductor during tax deduction, we'll need details on these too (for the period 1 April 2024 to 31 March 2025, 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 (1 April 2025 to 31 March 2026)
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's worth checking your AIS before filing, since it often surfaces income or transactions that are easy to miss otherwise.
Late Fee & Interest
If a return required to be filed isn't submitted within the prescribed time limit, a late fee applies:
| # | Particulars | Late Fee |
|---|---|---|
| 1 | Taxable income does not exceed ₹5,00,000 | ₹1,000 |
| 2 | Taxable income exceeds ₹5,00,000 | ₹5,000 |
If you're unsure which due date applies to you, or want help pulling your AIS and reconciling it before filing, send through the details above and we'll take it from there. Our Taxation team handles ITR filing across all categories.
