Filing your Income Tax Return (ITR) for the financial year (FY) 2025-26 (Assessment Year 2026-27) is a crucial task, and being proactive is the best way to avoid stress, penalties, and last-minute errors. With the new Income Tax Act, 2025 coming into effect, the tax landscape is evolving to be simpler, yet it requires careful attention to detail. 

Here is your comprehensive guide to things to keep in mind for ITR 2025–26.

1. Key Deadlines and Assessment Year 

For income earned between April 1, 2025, and March 31, 2026 (FY 2025-26), the corresponding Assessment Year is AY 2026-27. 

• Individual/Salaried/HUF (No Audit): The due date is July 31, 2026. 

• Audit Cases/Companies: The due date is October 31, 2026. 

• Belated Return: If you miss the deadline, you can file until December 31, 2026, but with a penalty and interest. 

2. The New Tax Regime is the Default Option 

From FY 2023-24 onwards, the New Tax Regime is the default option. However, you still have the option to switch to the Old Regime if it offers more tax savings through deductions. 

• Evaluate Both: Use the Income Tax Department Calculator to compare the old vs. new tax liability before finalizing. 

• Switching: Salaried individuals can switch between regimes every year, but those with business/professional income can only switch once in a lifetime. 

3. Essential Pre-filing Documents 

Gather these documents to ensure a smooth filing process: 

• PAN and Aadhaar: Ensure they are linked. 

• Form 16: Provided by your employer (salary details). 

• Form 26AS & Annual Information Statement (AIS): Download from the e-filing portal to verify TDS, advance tax, and high-value transactions. 

• Bank Statements: For interest income and savings interest. 

• Capital Gains Statements: From brokers (shares/mutual funds) and property transactions. 

• Investment Proofs: If choosing the old regime (80C, 80D, HRA). 

4. Major Changes in FY 2025-26 

• Higher Standard Deduction: The standard deduction for salaried individuals under the new tax regime is ₹75,000. 

• Increased Rebate under Section 87A: Taxable income up to ₹12 lakh is effectively tax-free under the new regime due to an enhanced rebate. 

• TCS Changes: The Tax Collected at Source (TCS) on foreign remittances (LRS) has been standardized to 2% for education and medical purposes. 

• Updated Return Deadline: The time to file a revised return has been extended to 31 March 2027. 

5. Common Mistakes to Avoid 

• Ignoring AIS/26AS Mismatches: If income shown in AIS is not in your return, you may receive a notice. 

• Selecting Wrong ITR Form: Choosing the wrong form can render the return defective (e.g., using ITR-1 instead of ITR-2 when you have capital gains). 

• Not E-Verifying: You must e-verify your return within 30 days of filing; otherwise, it is treated as invalid. 

• Incorrect Personal Info: Mismatched PAN/Aadhaar details can lead to failed validation and delayed refunds. 

6. Tips for Smart Tax Planning 

• File Early: Don't wait for July 31. Last-minute technical glitches on the portal are common. 

• Use the Right Portal Tab: The portal will show two tabs—one for the Income Tax Act 1961 (for FY 2025-26) and one for the Income Tax Act 2025. Use the 1961 Act tab for this filing. 

• Bank Account Pre-validation: Pre-validate your bank account on the portal for fast, direct credit of refunds. 

Disclaimer: Tax laws are subject to change. Always consult a qualified tax professional for guidance on your specific situation. 

This blog is based on guidelines available up to early 2026. For the latest updates, visit the official Income Tax e-Filing portal. 

Get Expert Help: 

Consult Kopparam and Associates. We help you structure your accounts to be 100% compliant. Visit us to experience services delivered by the best experienced hands in the field.

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