Do I Need to File Income Tax Return (ITR) in India? — Updated for FY 2025 26 / AY 2026 27

Whether you must file ITR depends on two main things:

1. Which tax regime you choose (Old vs New)

2. Your total income + exempted income + deductions + special income (capital gains, etc.)

✅ Tax Slabs & Basic Exemption (FY 2025‑26)

New Tax Regime (Section 115BAC) — same for all ages

Note: Because of the increased basic exemption (₹4 L) and rebate under Section 87A (for taxable income up to ₹12 L), many salaried taxpayers may pay zero tax under the new regime if they don’t have “special‑rate income” (capital gains, STCG, etc.)

Old Tax Regime (for age‑based exemption) — unchanged from previous years

Beyond these thresholds, applicable tax slabs: 5%, 20%, 30%.

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✅ Who Should File ITR (Even if Income Below Slab Threshold)

Even if your income is below the basic exemption limit, you should file ITR under any of these conditions:

• You have capital gains, short‑term gains, speculative income, crypto gains, or other special‑rate income.

• You want to claim refund of excess TDS / TCS / advance tax.

• You want carry‑forward losses (capital loss, business loss, etc.).

• You need proof of income for loans, credit cards, visas, etc.

• You are an NRI / foreign‑income earner / have foreign assets/income.

• You had TDS deducted, even if income is below threshold.

📌 Many important financial & compliance benefits (covered below) come only if you file ITR.

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💡 Benefits of Filing ITR (Even When Not Mandatory)

• Proof of Income & Tax Compliance — useful for loans, visas, credit history

• Claim Refunds — for excess TDS, TCS or advance tax paid

• Carry‑Forward Losses — Capital losses, business losses set off in future years

• Avoid Penalties or Notices — avoids mismatch or non‑filing alerts

• Documentation for Investments / Compliance — helps during audits or financial verification

• Financial Credibility — eases processes like loan approval, credit history checks, visa/apartment rental, etc.

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🗓 ITR Filing Deadlines (FY 2025‑26 / AY 2026‑27)

⚠️ Late filing may result in interest and penalty under Section 234A/234B/234C.

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🧰 How to File ITR (Simple Steps for 2025–26)

1. Collect documents: Form 16, Bank statements, Investment proofs, Capital gains proofs, TDS/TCS challans.

2. Choose your regime (Old or New) / choose correct ITR form (ITR‑1/2/3/4 as applicable).

3. Calculate total income (salary, house property, capital gains, other income).

4. Compute deductions or exemptions (if old regime) or simply apply slab (if new regime).

5. File online via e‑filing portal → Upload JSON or use built‑in utility → Verify via Aadhaar / OTP / net‑banking.

6. Save ITR‑V / acknowledgement; store documents for 6 years (recommended).

Internal Link: Use WonderTax’s Income Tax Filing Online Services to simplify your filing.

https://wondertax.in/services/plans/all-plans/tax-filing-and-advisory

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📋 Quick Decision Table: When to File ITR

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🎯 Why WonderTax Makes ITR Filing Easy & Risk-Free

• ✅ Expert‑reviewed returns — minimize errors

• ✅ Auto‑calculation of deductions, gains, losses

• ✅ Support for both Old & New Regime — helps choose the best

• ✅ Secure cloud filing & storage — effortlessly retrievable documents

• ✅ Refund tracking, notice handling, paperwork support

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❓ FAQs (2025–26 Updated)

Q1: Do I need to file ITR if income < ₹4,00,000 under new regime and no capital gains?
→ Not mandatory. But filing is useful if you want proof of income, refunds, or future credit/loan eligibility.

Q2: Can I switch between old and new regime each year?
→ Yes, while filing your ITR, you may choose either regime depending on which benefits you more (subject to conditions).

Q3: Will senior citizens get extra exemption under new regime?
→ No. Under new regime slab — same for all ages. Senior‑age exemption applies only under old regime.

Q4: I had only TDS on salary — should I file ITR?
→ Yes. Filing helps claim refund and maintain clean record for loans/financial history.

Q5: Does filing ITR help with loan or visa applications?
→ Yes. ITR acknowledgement serves as valid proof of income and tax compliance.

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✅ Conclusion — Filing ITR Is Smart Tax Planning (FY 2025–26)

With the new tax slabs and rebate rules effective from FY 2025‑26, many individuals may pay zero or very low tax under the new regime.
But whether your income is zero or high, filing ITR remains a smart move — for refunds, documentation, loss carry‑forward, and financial credibility.

👉 Considering your income sources, capital gains, rental income, or future financial needs — filing ITR with WonderTax ensures compliance, optimization, and peace of mind.

https://wondertax.in/services/plans/all-plans/tax-filing-and-advisory