Filing your Income Tax Return (ITR) for FY 2025-26 (Assessment Year 2026-27) is the single most important financial task you'll do this year. Whether you're a salaried employee, freelancer, business owner, or trader — this guide breaks down everything you need to know in plain language.
What changed in FY 2025-26?
The Union Budget 2025 introduced significant changes to the New Tax Regime, making it the more attractive option for most salaried taxpayers. Here's a quick summary:
- Zero tax up to ₹12 lakh taxable income (via enhanced Section 87A rebate of ₹60,000)
- Standard deduction increased to ₹75,000 (from ₹50,000 earlier)
- Effectively, salaried individuals pay zero tax on gross salary up to ₹12.75 lakh under the New Regime
- The Old Regime continues unchanged — useful for taxpayers with significant 80C, 80D, HRA, home loan interest claims
New Tax Regime Slabs · FY 2025-26
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹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% |
Old Tax Regime Slabs · Unchanged
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Which ITR form should you use?
- ITR-1 (Sahaj): Salary + 1 house property + interest income + agricultural income up to ₹5,000. Total income under ₹50 lakh.
- ITR-2: Salary + multiple house properties + capital gains + foreign income. NO business income.
- ITR-3: Business or professional income (proprietor, consultant, F&O trader, freelancer treating it as business).
- ITR-4 (Sugam): Presumptive taxation under Section 44AD, 44ADA, 44AE — typically small businesses and professionals.
Critical deadlines for FY 2025-26
| Taxpayer Type | Due Date |
|---|---|
| Individual (no audit required) | 31 July 2026 |
| Audit cases / companies | 31 October 2026 |
| Transfer pricing cases | 30 November 2026 |
| Belated return (with penalty) | 31 December 2026 |
| Updated return (ITR-U) | 31 March 2030 (within 48 months) |
Documents you'll need
- PAN card & Aadhaar card
- Form 16 (if salaried)
- Form 26AS / AIS (downloadable from incometax.gov.in)
- Bank account details (for refund)
- Investment proofs (80C: PPF, ELSS, life insurance, EPF, etc.)
- Health insurance receipts (80D)
- Home loan interest certificate (24b — Old Regime only)
- Capital gains statements (broker reports for stocks/MFs, exchange statements for crypto)
- Rent receipts if claiming HRA (Old Regime only)
How to choose between New and Old Regime
Quick rule of thumb:
- Choose New Regime if: Total deductions (80C + 80D + HRA + home loan interest + etc.) are under ~₹3.5 lakh per year
- Choose Old Regime if: You have significant home loan interest (24b), HRA, and 80C investments totaling ₹4+ lakh in deductions
Our CA team computes BOTH at filing time and recommends whichever saves you more. This can save tens of thousands annually for some taxpayers.
Common mistakes to avoid
- Not reporting all bank interest — even small savings account interest above ₹10,000 is taxable (₹50,000 for senior citizens)
- Skipping capital gains from MFs — even SIPs you redeemed have capital gains
- Missing F&O turnover — F&O income must be reported even if it's a loss
- Wrong ITR form — using ITR-1 when you have capital gains will get the return defective
- Forgetting to e-verify — your return is INVALID until you e-verify (Aadhaar OTP is fastest)
Why filing through a CA matters in FY 2025-26
With multiple regimes, complex capital gains rules post-Budget 2024, F&O reporting requirements, crypto's Section 115BBH treatment, and the AIS-26AS mismatch issue plaguing many returns — DIY filing has become risky. A small error can cost ₹50,000+ in penalty + interest, or trigger a scrutiny notice that takes years to resolve.
At ETAXCART, every return is prepared and reviewed by a qualified Chartered Accountant — for as little as ₹499 (salaried) to ₹4,399 (crypto + F&O combined). No upsells. No hidden fees. Filed in 24-48 hours.
Ready to file your ITR for FY 2025-26?
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