This ITR filing guide AY 2026-27 is for the lakhs of taxpayers across Ahmedabad who sit down in late July, open the income tax portal, and realise they’re not sure which form to pick, what’s changed since last year, or whether they should stick with the old tax regime or move to the new one. If that sounds familiar, you’re in the right place.”
This guide walks you through everything you need to know to file your Income Tax Return for FY 2025-26 (Assessment Year 2026-27) – from the latest rule changes and revised due dates to a complete step-by-step filing process, document checklist, and the mistakes that most commonly cause refund delays or tax notices.
An Income Tax Return (ITR) is a form you submit to the Income Tax Department reporting your total income, the tax you’ve already paid (through TDS, advance tax, or self-assessment tax), and your final tax liability for the financial year. Based on this, you either receive a refund for excess tax paid or pay the balance due.
Filing your ITR isn’t just a compliance formality. It plays a direct role in:
Even if your income is below the taxable limit, filing a return voluntarily can work in your favour, especially if you’re planning a major purchase or application that requires income proof.
What’s new for AY 2026-27
This year brings some of the most significant procedural changes in recent memory. Here’s a quick summary of what’s different compared to last year’s filing season.
The new tax regime continues as the default option, but the basic exemption limit has been raised to ₹4 lakh, and the slab structure now has seven tax brackets ranging from nil to 30% (applicable above ₹24 lakh). If you want to stay with the old regime instead, you’ll need to actively opt for it while filing.
Short-term capital gains on equity (under Section 111A) are taxed at 20%, and long-term capital gains (under Section 112A) at a flat 12.5%, with indexation benefits removed for most assets. The Cost Inflation Index for FY 2025-26 has been set at 363, relevant mainly for pre-July 2024 property transactions. The earlier date-based split (pre and post 23 July 2024) that caused confusion last year has now been removed from the ITR forms entirely.
Instead of one common deadline for everyone, due dates now depend on which ITR form you’re using. We’ve covered this in detail in the next section, but the short version is: salaried individuals filing ITR-1 or ITR-2 get more time on one end, while business and professional taxpayers filing ITR-3 or ITR-4 (non-audit) now have until the end of August.
If you’ve missed filing or made an error in a past return, the window to file an updated return (ITR-U) has been extended to 48 months (4 years) from the end of the relevant assessment year, giving taxpayers considerably more breathing room to correct past filings.
New reporting fields have been added for political donations claimed under Section 80GGC, and NRIs opting for presumptive taxation now have a separate reporting schedule. Crypto and other virtual digital assets continue to be taxed at a flat 30%, with no deductions allowed except the cost of acquisition, and losses cannot be set off against any other income.
This is one of the most important changes this year, so pay close attention to which category you fall under.
| Taxpayer category | Applicable form | Due date |
|---|---|---|
| Salaried individuals, pensioners | ITR-1, ITR-2 | 31st July 2026 |
| Business/professional income, non-audit cases | ITR-3, ITR-4 | 31st August 2026 |
| Businesses requiring tax audit | ITR-3, ITR-5, ITR-6 | 31st October 2026 |
| Transfer pricing cases | Applicable forms | 30th November 2026 |
| Belated return (with late fee) | Any applicable form | 31st December 2026 |
| Revised return window | Any applicable form | 31st March 2027 |
Filing late attracts a penalty of ₹5,000 under Section 234F (₹1,000 if your total income is ₹5 lakh or below), plus 1% monthly interest on unpaid tax under Section 234A. More importantly, if you file a belated return, you lose the option to choose the old tax regime — you’ll be taxed under the new regime by default, regardless of which one is more beneficial for you. Filing on time also means your refund, if any, gets processed faster.
Filing an ITR is mandatory for the following categories, regardless of where you live in Ahmedabad — whether you’re in Bodakdev, Satellite, Vastrapur, SG Highway, or anywhere else in the city:
Having these ready before you sit down to file — or before you hand them over to your CA — will save you several rounds of back and forth.
| Category | Documents needed |
|---|---|
| Basic identity | PAN card, Aadhaar card, active bank account details (for refund credit) |
| Salaried individuals | Form 16, salary slips, rent receipts (if claiming HRA) |
| Business/professional income | Profit and loss statement, balance sheet, GST returns, bank statements |
| Investments and deductions | LIC receipts, PPF/ELSS statements, home loan interest certificate, health insurance premium receipts |
| Capital gains | Broker/contract notes, property sale deeds, purchase cost details |
| Rental income | Rent agreement, municipal tax receipts, home loan certificate |
| TDS verification | Form 26AS, Annual Information Statement (AIS), TDS certificates |
| NRI filing | NRO/NRE account statements, foreign income proofs, DTAA-related documents |
You can still file accurately using your salary slips, bank statements, Form 26AS, and AIS data. These three documents together capture almost everything the Income Tax Department already knows about your income and TDS, so cross-checking against them is essential regardless of whether you have Form 16.
Choosing the wrong form is one of the most common reasons returns get marked defective. Here’s a quick reference:
| ITR form | Who should file |
|---|---|
| ITR-1 (Sahaj) | Salaried individuals with income up to ₹50 lakh, one house property, and other sources like interest income |
| ITR-2 | Individuals with capital gains, multiple house properties, foreign assets, or income above ₹50 lakh without business income |
| ITR-3 | Individuals and HUFs with income from business or profession, including freelancers and consultants maintaining books of accounts |
| ITR-4 (Sugam) | Individuals, HUFs, and firms (other than LLP) opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE |
If you’re unsure which one applies to your situation – especially if you have a mix of salary and freelance income, or capital gains alongside a regular job – it’s worth getting this checked before you file, since switching forms after filing usually means filing a revised return.
The new tax regime is the default for AY 2026-27, with a basic exemption limit of ₹4 lakh and seven slabs going up to 30% for income above ₹24 lakh. It offers lower tax rates but removes most deductions and exemptions, such as 80C, 80D, and HRA.
The old regime retains higher rates but allows you to claim deductions for investments, insurance premiums, home loan interest, HRA, and more.
As a rough guide:
If you file a belated return (after the due date), you cannot opt for the old tax regime at all – you’ll be taxed under the new regime regardless of which one would have saved you more. This is one more reason filing on time matters, especially if the old regime suits your financial situation better.
Here’s the complete process from start to finish, whether you’re filing yourself on the income tax e-filing portal or working with a Chartered Accountant.
Collect Form 16, bank statements, Form 26AS, AIS, investment proofs, and any capital gains or rental income records. List out every source of income for the financial year – salary, interest, rent, capital gains, business income, and so on.
Based on your income sources and total income, select the applicable form from ITR-1 to ITR-4 (or higher forms for businesses and companies). Filing the wrong form can result in your return being treated as defective.
Cross-check the income and TDS details in your documents against Form 26AS and the Annual Information Statement. Mismatches between what you report and what the department already has on record are one of the most common triggers for income tax notices.
Decide between the old and new tax regime based on which results in lower tax liability for your situation, keeping in mind the restrictions on switching for business and professional taxpayers.
Calculate your gross total income, claim eligible deductions (if under the old regime), and arrive at your final tax liability. Account for advance tax and TDS already paid to determine your refund or balance payable.
Log in to the income tax e-filing portal using your PAN, select the assessment year (AY 2026-27) and the applicable ITR form, and fill in your income, deduction, and tax details. Most fields are pre-filled based on your AIS and Form 26AS, but these should always be verified rather than accepted blindly.
If your TDS and advance tax payments don’t fully cover your tax liability, pay the balance as self-assessment tax before submitting your return.
Once submitted, your ITR must be verified within 30 days using Aadhaar OTP, net banking, electronic verification code (EVC), or by sending a signed physical ITR-V to the CPC office. An unverified return is treated as if it was never filed.
After verification, your return is processed and any refund due is credited to your bank account, usually within a few weeks for straightforward returns. Keep an eye on your registered email and the portal for any communication from the department.
For most salaried individuals filing ITR-1 or ITR-2, the due date is 31st July 2026. Business and professional taxpayers filing ITR-3 or ITR-4 (non-audit) have until 31st August 2026, while audit cases get until 31st October 2026.
Salaried individuals and those without business income can choose their preferred regime every year directly while filing their return. Business and professional taxpayers can switch out of the new regime only once in their lifetime, by filing Form 10-IEA before the due date.
You can still file a belated return until 31st December 2026, but you’ll face a late fee under Section 234F (₹1,000 or ₹5,000 depending on your income level), interest on any unpaid tax, restrictions on carrying forward certain losses, and you’ll lose the option to choose the old tax regime for that year.
Short-term capital gains on equity under Section 111A are taxed at 20%, and long-term capital gains under Section 112A at a flat 12.5%, with indexation removed for most assets. For certain pre-July 2024 property transactions, the Cost Inflation Index of 363 for FY 2025-26 applies.
Yes. The revised return window for AY 2026-27 has been extended to 31st March 2027. Additionally, an updated return (ITR-U) can now be filed up to 48 months from the end of the relevant assessment year, giving you significantly more time to correct errors in past filings.
Yes. Income from virtual digital assets such as cryptocurrency and NFTs is taxed at a flat 30% under Section 115BBH, with no deductions allowed except the cost of acquisition, and any losses cannot be set off against other income. This must be reported separately in the relevant schedule.
Simple returns with only salary income can often be filed independently using the pre-filled e-filing portal. However, if you have capital gains, business income, multiple properties, foreign income, or are unsure which regime benefits you more, professional assistance helps ensure accuracy, reduces the risk of notices, and often identifies deductions or planning opportunities you might otherwise miss.
CA Pratik Bhatt has over 13 years of experience in Income Tax, GST, accounting, and business compliance, helping individuals, professionals, business owners, and NRIs across Ahmedabad manage their tax obligations accurately and efficiently. This guide is reviewed periodically to reflect current Income Tax regulations and filing requirements.
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