Who Should File ITR?
Filing your Income Tax Return (ITR) for FY 2025–26 (Assessment Year 2026–27) is mandatory for individuals and entities whose income exceeds the basic exemption limit, and is strongly recommended even when income is below the threshold to maintain a clean financial record.
You must file an ITR if any of the following apply:
- Your gross total income exceeds ₹2.5 lakh (₹3 lakh for senior citizens; ₹5 lakh for super senior citizens aged 80+), before deductions under Chapter VI-A.
- You deposited more than ₹1 crore in one or more current accounts during the financial year.
- Your electricity expenditure exceeded ₹1 lakh in the financial year.
- You incurred expenditure of more than ₹2 lakh on foreign travel.
- You are claiming a tax refund (excess TDS, advance tax, etc.).
- You have foreign income or assets (including overseas bank accounts).
- You are a company or LLP, regardless of income level.
- You received income from business or profession and your total income exceeds the exemption limit.
- You are carrying forward losses (capital, business, or speculative) to future years — you can only do so if the return is filed on time.
Even if you are not mandatorily required, filing is good practice — it creates a verifiable income record useful for loan applications, visa processing, and insurance.
Key Due Dates for AY 2026–27
| Category | Due Date |
|---|---|
| Individuals / HUF / AOP (no audit) | 31st July 2026 |
| Businesses requiring audit (Companies, LLPs, etc.) | 31st October 2026 |
| Transfer Pricing cases | 30th November 2026 |
| Belated Return (penalty applicable) | 31st December 2026 |
| Updated Return (ITR-U, with extra tax) | 31st March 2029 |
Pro Tip: Filing before 31 July avoids a late-filing fee of ₹1,000–₹5,000 (under Section 234F), preserves the right to carry forward losses, and allows you to revise the return if corrections are needed.
Required Documents
Gather the following before starting your return:
Identity & Linking
- PAN Card
- Aadhaar Card (must be linked with PAN)
- Bank account details for refund credit
Income Documents
- Form 16 from your employer (Part A: TDS; Part B: salary breakup)
- Form 16A / 16B / 16C: TDS on rent, property sales, professional income
- Form 26AS (Tax Credit Statement) — download from Income Tax Portal
- AIS / TIS (Annual Information Statement) — cross-check with your records
- Salary slips or appointment letter (if Form 16 unavailable)
- Bank interest certificates (savings/FD/RD)
- Dividend statements from brokers/Mutual Fund companies
Investment & Deduction Proofs
- Section 80C: LIC premiums, PPF contributions, ELSS, home loan principal statements, school fee receipts
- Section 80D: Health insurance premium receipts
- Section 80CCD(1B): NPS contribution slips
- HRA exemption: Rent receipts + landlord's PAN (if rent > ₹1 lakh/year)
- Home loan interest certificate from the lender (Section 24)
Capital Gains
- Broker statements (contract notes, P&L reports)
- Mutual Fund Capital Gains statements (download from AMC portals or CAMS/KFintech)
- Property sale deed and purchase agreement
Choosing the Correct ITR Form
Selecting the wrong form is a common but avoidable error. Here's a straightforward guide:
| ITR Form | Who Should Use It |
|---|---|
| ITR-1 (Sahaj) | Residents with salary/pension, one house property income, other income (interest etc.) up to ₹50 lakh. Cannot be used for: capital gains, business income, foreign assets, or more than one house. |
| ITR-2 | Individuals/HUF with income from capital gains, more than one house property, foreign income/assets, or income > ₹50 lakh. |
| ITR-3 | Individuals/HUF with income from business or profession. Also covers all ITR-2 income types. |
| ITR-4 (Sugam) | Individuals/HUF/firms opting for Presumptive Taxation Scheme (44AD/44ADA/44AE). Total income must be ≤ ₹50 lakh. |
| ITR-5 | Firms, LLPs, AOPs, BOIs (not companies). |
| ITR-6 | Companies (other than those claiming exemption under Section 11). |
| ITR-7 | Trusts, political parties, research institutions filing under Sections 139(4A)-(4F). |
Key Rule for Salaried Professionals: If you have freelance income, traded stocks, or have a home loan with two properties — use ITR-2 or ITR-3, not ITR-1.
Common Mistakes to Avoid
These errors frequently result in notices, delayed refunds, or penalties:
1. Not reconciling AIS/TIS with your actual data. The Income Tax Department has visibility into your financial transactions via SFT, banking data, and GSTIN. Any mismatch triggers scrutiny.
2. Ignoring savings account interest. Interest from all savings accounts is taxable (beyond the ₹10,000 exemption under Section 80TTA). Most filers forget to include this.
3. Incorrect claim of HRA exemption. HRA can only be claimed if you are actually paying rent and living in rented accommodation. Fabricating rent receipts is a criminal offence.
4. Not reporting FD/RD interest. TDS on FDs is typically 10%, but the full interest is taxable at your slab rate. Failing to report this results in notices.
5. Missing capital gains from mutual fund switches/redemptions. Switching between mutual fund schemes is a taxable event. Systematically track all redemptions.
6. Wrong ITR form. Filing ITR-1 when ITR-2 is required results in defective return notices.
7. Not verifying the return within 30 days. A filed-but-unverified return is treated as not filed. Verify via Aadhaar OTP, net banking, or DSC immediately after filing.
8. Not pre-validating your bank account. Refunds are credited only to pre-validated accounts on the portal.
How to Track Your Refund
Once your return is processed:
1. Log in to the Income Tax Portal: incometax.gov.in
2. Navigate to e-File → Income Tax Returns → View Filed Returns
3. Your return status will show one of:
- Successfully e-Verified: Return has been submitted and verified, awaiting CPC processing.
- ITR Processed: CPC has processed the return. Refund (if any) will be initiated.
- Refund Issued: Refund has been sent to your bank account.
- Defective: Error in the return — you will receive an intimation under Section 139(9) with 15 days to correct it.
You can also track the refund at NSDL: tin.tin.nsdl.com/oltas/refundstatuslogin.html
Typical refund timelines:
- E-filed + Aadhaar OTP verified: 10–45 working days
- Physical verification: 60–90 days
- Complex returns (capital gains, business income): may take longer if scrutiny is triggered
Frequently Asked Questions
Q: Can I file ITR without Form 16?
Yes. Form 16 is convenient but not mandatory. You can reconstruct your salary income from salary slips and cross-reference TDS via Form 26AS and AIS.
Q: What if I missed the 31 July deadline?
You can file a belated return up to 31 December 2026. A penalty of ₹1,000 (income ≤ ₹5 lakh) or ₹5,000 applies. You cannot carry forward losses with a belated return.
Q: Is it mandatory to e-verify my return?
Yes. E-verification must be done within 30 days of filing. Without verification, the filing is void.
Q: Can I revise my ITR after filing?
Yes, you can revise the return any number of times before 31 December 2026, as long as the original return was filed on time.
Q: What happens if I don't file even though mandatory?
Penalty under Section 234F (₹1,000–₹5,000), plus interest under Sections 234A and 234B on unpaid taxes. Persistent non-filing can result in prosecution under Section 276CC.
Q: Should I choose old or new tax regime?
This depends on your deductions. If total deductions (80C, 80D, HRA, home loan, NPS) exceed ~₹4–5 lakh, the old regime often gives a lower tax outgo. WonderTax's free Tax Regime Calculator can help you decide in under 60 seconds.