Key Highlights
- ITR filing provisions now under Section 263, Income Tax Act, 2025 (corresponds to Section 139, ITA 1961)
- Due date for non-audit individuals and salaried: 31st July of the year following the Tax Year
- Due date for tax audit cases: 31st October; transfer pricing: 30th November
- Late filing fee: ₹5,000 (₹1,000 if income ≤ ₹5 lakh) under Section 425
- New ITR forms expected from CBDT for Tax Year 2026-27 reflecting ITA 2025 terminology
- Mandatory filing even if tax = zero, if income exceeds basic exemption (₹4 lakh new regime)
- Revised return: file within 31st December of the relevant Tax Year
1. Overview
Filing an Income Tax Return (ITR) is the process of reporting your income, deductions, and tax liability to the Income Tax Department for a Tax Year. Under the Income Tax Act, 2025, this obligation is codified under Section 263, which replaces the old Section 139 of ITA 1961.
For Tax Year 2026-27 (income earned from 1 April 2026 to 31 March 2027), the ITR must be filed by the due dates specified under Section 263. The ITR forms will carry new terminology — "Tax Year" instead of "Assessment Year" — and will be notified by the CBDT before 1 April 2026.
Even if your tax liability is zero after deductions and the Section 157 rebate, you must still file an ITR if your gross total income before deductions exceeds ₹4 lakh (new regime basic exemption). Filing an ITR creates a documented income history, helps in loan applications, visa processing, and carries forward losses.
2. Who Must File an ITR?
Under Section 263 of ITA 2025, the following persons must file an ITR:
- Every individual, HUF, company, or firm whose total income exceeds the basic exemption limit (₹4 lakh for individuals under new regime)
- A person who has deposited more than ₹1 crore in bank accounts during the Tax Year
- A person who has incurred foreign travel expenditure exceeding ₹2 lakh during the Tax Year
- A person who has electricity consumption exceeding ₹1 lakh during the Tax Year
- A person who is a resident and has signing authority in a foreign account
- A person who has assets or financial interest outside India
- Every company and firm, regardless of income or loss
- A person seeking to carry forward a loss from a previous Tax Year
3. Which ITR Form to Use?
| ITR Form | Who Should File |
|---|---|
| ITR-1 (Sahaj) | Resident individuals with salary, one house property, other sources (FD interest, dividend) — total income up to ₹50 lakh |
| ITR-2 | Individuals/HUF with capital gains, more than one house property, foreign income/assets, or income >₹50 lakh |
| ITR-3 | Individuals/HUF with business or professional income (not eligible for presumptive scheme) |
| ITR-4 (Sugam) | Individuals/HUF/Firms under presumptive taxation (Section 44AD, 44ADA, 44AE equivalents) — income up to ₹50 lakh |
| ITR-5 | Firms, LLPs, AOPs, BOIs, co-operative societies, trusts (other than those filing ITR-7) |
| ITR-6 | Companies (other than those claiming exemption under Section 11) |
| ITR-7 | Trusts, political parties, scientific research institutions, charitable organisations |
4. Documents Required for ITR Filing
- PAN card and Aadhaar card
- Form 16 (from employer) — for salaried individuals
- Form 26AS and Annual Information Statement (AIS) — from Income Tax Portal
- Bank account statements for all accounts
- Proof of investments (PPF, LIC, ELSS, NSC etc.) — for old regime
- Home loan interest certificate (from bank) — if claiming Section 24 deduction
- Rent receipts and rent agreement — for HRA claim
- Capital gains statements from broker/mutual fund platform
- Foreign asset details (if ROR)
- Business P&L and Balance Sheet (if business income)
5. Step-by-Step ITR Filing Process (Online)
- Visit incometaxindia.gov.in — the official Income Tax e-Filing Portal
- Login with PAN and password (register if first time)
- Select 'File Income Tax Return' from the 'e-File' menu
- Select Tax Year 2026-27 and filing mode (Online recommended)
- Select the correct ITR form based on your income sources
- Pre-fill the form — the portal pre-fills salary, TDS, and other data from Form 26AS and AIS
- Verify pre-filled data — match with Form 16 and correct any discrepancies
- Enter remaining income details — capital gains, house property, business income, other sources
- Select tax regime (new or old) and enter deductions if old regime
- Compute tax — the portal calculates tax, rebate, and final liability automatically
- Pay any balance tax due via self-assessment tax challan (Challan 280)
- Submit the return and proceed to verification
- Verify the return — using Aadhaar OTP (instant), Net Banking, Bank Account EVC, or send signed ITR-V to CPC Bengaluru within 30 days
6. ITR Due Dates for Tax Year 2026-27
| Category of Taxpayer | Due Date | Section (ITA 2025) |
|---|---|---|
| Individual, HUF (no audit required) | 31st July 2027 | Section 263(1) |
| Business requiring tax audit (turnover > ₹1 crore / ₹50L for professionals) | 31st October 2027 | Section 263(1) |
| Transfer pricing audit cases | 30th November 2027 | Section 263(1) |
| Belated return (after due date) | 31st December 2027 | Section 263(4) |
| Revised return (correcting filed ITR) | 31st December 2027 | Section 263(5) |
| Updated return (ITR-U) | Within 2 years from end of Tax Year | Section 263(8A) |
7. Belated and Revised Returns
Belated Return (Section 263(4)): If you miss the 31st July due date, you can still file a belated return up to 31st December 2027. However, a late filing fee of ₹5,000 (₹1,000 if income ≤ ₹5 lakh) applies under Section 425. Additionally, you cannot carry forward most losses if you file a belated return.
Revised Return (Section 263(5)): If you discover an error or omission in your originally filed return, you can file a revised return by 31st December 2027. There is no fee for revising a return that was originally filed on time.
Updated Return (ITR-U, Section 263(8A)): Even after the revised return deadline, you can file an updated return within 2 years from the end of the Tax Year — but additional tax must be paid (25% extra tax if filed in Year 1; 50% extra if filed in Year 2).
8. Verification of ITR
After submitting your ITR online, it must be verified within 30 days to be considered validly filed. Verification methods:
- Aadhaar OTP: Fastest — verify instantly on portal
- Net Banking EVC: Through your bank's net banking
- Bank Account EVC: Using pre-validated bank account
- Demat Account EVC: Using pre-validated demat account
- ITR-V by post: Print signed ITR-V and send to CPC Bengaluru within 30 days
An unverified ITR is treated as if it was never filed. Always verify within 30 days of submission.
9. What Happens After Filing?
- CBDT's Centralised Processing Centre (CPC) processes the return — typically within 15-30 days
- If no discrepancy: an Intimation under Section 287 of ITA 2025 (old Section 143(1)) is issued confirming the processing
- If discrepancy: a demand notice is issued — respond within the given timeline
- If refund is due: refund is credited to your pre-validated bank account
- If selected for scrutiny: a Section 279 notice (old Section 143(2)) is issued within the prescribed time
10. Penalties for Non-Filing / Late Filing
| Default | Consequence | Section (ITA 2025) |
|---|---|---|
| Late filing fee | ₹5,000 (₹1,000 if income ≤ ₹5L) | Section 425 |
| Non-filing (deliberate) | Prosecution — imprisonment 3 months to 2 years + fine | Section 480 |
| Non-filing (tax > ₹25 lakh) | Prosecution — imprisonment 6 months to 7 years + fine | Section 480 |
| Interest on unpaid tax | 1% per month under Section 418 | Section 418 |
| Losses cannot be carried forward | If belated return filed | Section 108/263 |
11. Latest Updates Under ITA 2025
- ITR filing provision now under Section 263 (replaces Section 139 of ITA 1961)
- New ITR forms for Tax Year 2026-27 to be notified by CBDT — will use "Tax Year" terminology
- Updated return (ITR-U) provisions retained under Section 263(8A)
- AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) continue as key pre-fill data sources
- Faceless processing under Section 532 of ITA 2025 — no physical interaction needed
12. Why TaxClue
Filing ITR correctly — choosing the right form, the right regime, and claiming all eligible deductions — requires expertise. TaxClue handles complete ITR filing for individuals, businesses, and companies under the Income Tax Act, 2025. Contact us for hassle-free ITR filing for Tax Year 2026-27.
13. Resources & Checklist
- ☐ Collect Form 16 from employer by 15 June 2027
- ☐ Download Form 26AS and AIS from Income Tax Portal
- ☐ Gather all investment proofs, rent receipts, capital gain statements
- ☐ Choose correct ITR form
- ☐ File ITR by 31 July 2027 (non-audit individuals)
- ☐ Verify ITR within 30 days of submission
- ☐ Pay any balance self-assessment tax before filing
14. Contact Us
Don't miss the ITR filing deadline for Tax Year 2026-27. TaxClue makes ITR filing simple, accurate, and stress-free. Contact us to get started.