A complete guide to filing your Income Tax Return (ITR) for Assessment Year 2025-26 in India. Learn which ITR form to use, documents needed, step-by-step e-filing process, deadlines, and tips to avoid penalties.
Who Must File an Income Tax Return?
Filing an income tax return (ITR) is mandatory for individuals, Hindu Undivided Families (HUFs), firms, companies, and other persons whose gross total income exceeds the basic exemption limit during the Financial Year 2024-25 (Assessment Year 2025-26). Even if your income is below the exemption limit, you must file if you meet certain conditions:
- Deposited more than ₹1 crore in one or more current accounts during the year
- Spent more than ₹2 lakh on foreign travel
- Paid electricity bills exceeding ₹1 lakh during the year
- TDS/TCS deducted exceeds ₹25,000 (₹50,000 for senior citizens)
- Turnover from business exceeds ₹60 lakh or from profession exceeds ₹10 lakh
- Received income from property held as a beneficiary of a trust
ITR Forms: Which One Should You Use?
| ITR Form | Who Should File |
|---|---|
| ITR-1 (Sahaj) | Resident individuals with salary, one house property, other sources, and total income up to ₹50 lakh |
| ITR-2 | Individuals/HUFs with capital gains, foreign income/assets, multiple house properties, or income above ₹50 lakh |
| ITR-3 | Individuals/HUFs with income from business or profession |
| ITR-4 (Sugam) | Individuals/HUFs/Firms under presumptive taxation (Section 44AD/44ADA/44AE) with income up to ₹50 lakh |
| ITR-5 | Partnership firms, LLPs, AOPs, BOIs |
| ITR-6 | Companies (other than companies claiming Section 11 exemption) |
| ITR-7 | Trusts, political parties, institutions, colleges, and universities |
Documents Required for ITR Filing
- Form 16: TDS certificate issued by your employer showing salary and tax deducted
- Form 26AS: Annual Tax Statement showing all TDS/TCS credits and advance tax paid
- Annual Information Statement (AIS): Comprehensive statement of financial transactions from the Income Tax portal
- Bank Statements: For interest income verification and matching with AIS
- Investment Proofs: Section 80C (PPF, ELSS, LIC), 80D (health insurance), 80E (education loan interest)
- Capital Gains Statements: From demat account, mutual fund houses, or property sale documents
- Rental Income Details: Rent receipts, property tax paid, home loan interest certificate
- Business/Profession Records: Profit & loss account, balance sheet (for ITR-3 filers)
Old vs New Tax Regime: Which to Choose?
For AY 2025-26, the new tax regime is the default option. However, you can opt for the old regime if it benefits you more. Here is a quick comparison:
| Feature | New Regime (Default) | Old Regime |
|---|---|---|
| Tax Slabs | Lower rates with more slabs | Higher rates, fewer slabs |
| Standard Deduction | ₹75,000 | ₹50,000 |
| Section 80C Deduction | Not available | Up to ₹1.5 lakh |
| HRA Exemption | Not available | Available |
| Section 80D (Health Insurance) | Not available | Up to ₹25,000 (₹50,000 for seniors) |
| Home Loan Interest (Section 24b) | Not available | Up to ₹2 lakh |
| Best For | Low-investment taxpayers | Taxpayers with heavy deductions/exemptions |
Use the tax calculator on the income tax portal or consult a CA to determine which regime saves you more tax.
Step-by-Step E-Filing Process
Step 1: Log in to the Income Tax Portal
Visit eportal.incometax.gov.in and log in using your PAN as the user ID.
Step 2: Go to E-File > Income Tax Returns > File Income Tax Return
Select the Assessment Year (2025-26), select your filing status, and choose the applicable ITR form.
Step 3: Choose Filing Mode
Select Online (recommended for ITR-1, ITR-4) or Offline (download the utility for ITR-2, ITR-3, and other complex forms). The offline utility allows you to prepare the return on your computer and upload the JSON file.
Step 4: Pre-Fill Data
The portal automatically pre-fills data from Form 26AS, AIS, and employer-reported information. Verify all pre-filled details carefully — discrepancies can trigger notices.
Step 5: Enter Additional Details
Add any income, deductions, or exemptions not captured in pre-filled data. Enter bank account details for refund crediting.
Step 6: Compute Tax and Pay Balance
The portal computes your total tax liability. If there is a balance due, pay it via the e-pay tax facility before submitting the return. Download the challan for your records.
Step 7: Verify and Submit
Review the entire return, accept the declaration, and submit. After submission, verify the return within 30 days using one of these methods:
- Aadhaar OTP (most convenient)
- Net banking
- Digital Signature Certificate (DSC)
- Bank ATM
- Physical ITR-V sent to CPC Bengaluru
Important Deadlines for AY 2025-26
| Category | Due Date |
|---|---|
| Individuals (non-audit) | July 31, 2025 |
| Businesses requiring audit | October 31, 2025 |
| Transfer pricing cases | November 30, 2025 |
| Revised return | December 31, 2025 |
| Belated return | December 31, 2025 |
Penalties for Late Filing
- Late Filing Fee (Section 234F): ₹5,000 if filed after the due date but before December 31. ₹1,000 if total income does not exceed ₹5 lakh.
- Interest (Section 234A): 1% per month on unpaid tax from the due date until the date of filing.
- Loss of Benefits: Certain losses (business loss, capital loss) cannot be carried forward if the return is filed late.
How The Ledger Company Can Help
Filing your income tax return accurately is crucial to avoid penalties and scrutiny. The Ledger Company provides expert ITR filing services for individuals, HUFs, businesses, and NRIs. Our CAs analyse your income sources, recommend the optimal tax regime, claim all eligible deductions, and ensure error-free filing. Book a consultation to get professional tax filing assistance.
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