What is Income Tax Return (ITR)?

Filing income tax returns, or ITR, is a fundamental obligation for taxpayers in India. Yet, many individuals, especially first-time earners, are often unsure about what exactly an Income Tax Return is, why it is required, and how it fits into the legal and financial framework of the country. This post will provide a thorough, humanized, and in-depth explanation of the concept of ITR to address these questions in detail.

1. Income Tax Return (ITR) in India

An Income Tax Return (ITR) is a formal statement or form that a taxpayer submits to the Income Tax Department of India, giving a detailed account of his or her income, tax liabilities, and payments made during a particular financial year. In the context of Indian tax laws, an ITR is not just a formality but a critical component in the overall tax administration system. It represents a taxpayer’s declaration of income earned, taxes paid, refunds claimed, and other relevant financial details.

The process of filing ITR encompasses self-assessment and disclosure, holding the taxpayer accountable for reporting their income and taxes truthfully. This self-declaration is later subject to processing and possible scrutiny by the tax department, forming the basis for further tax compliance procedures.

Meaning of Income, Tax, and Return

Before delving deeper, let’s break down the terminology:

  • Income: This includes all the money earned in a year from various sources — salary, business, rent, capital gains, interest, or even winnings from lotteries. It covers both Indian and foreign sources if the taxpayer is a resident.

  • Tax: This is the statutory charge levied on income, mandated by the Income Tax Act, 1961. It must be paid if your income exceeds a certain threshold (the exemption limit).

  • Return: In simple terms, ‘return’ means a statement or form submitted as a declaration. Hence, an Income Tax Return is a form where you “return” or declare all your income details for a year to the government.

Types of Income Covered by ITR

Income Tax Returns encapsulate various forms of income, including:

  • Salary or Pension

  • Income from House Property

  • Business or Professional Income

  • Capital Gains (from sale of property, securities, etc.)

  • Income from Other Sources (interest, lotteries, etc.)

The ITR form you use is determined by the nature and quantum of your income, residential status, and other specific factors.

Legal Requirement and Statutory Backdrop

The obligation to file an ITR is rooted in the Income Tax Act, 1961. Section 139(1) specifies that any individual, Hindu Undivided Family (HUF), firm, company, or other entity whose income exceeds the exemption limit must file a return annually. Non-filing, misreporting, or delay can lead to penalties, interest, and other legal consequences.

Functions of the ITR

The Income Tax Return serves multiple key purposes:

  1. Disclosure of Income: The primary purpose is to honestly report all sources of income for a financial year.

  2. Assessment of Tax Liability: It helps determine the exact tax payable or refund due after considering the taxes already paid (TDS, advance tax, self-assessment tax).

  3. Claiming Tax Refunds: If you have paid more tax than your actual liability, filing ITR is mandatory to claim the excess back.

  4. Documentation and Proof: An ITR is an official proof of income and tax compliance, often required for loans, visas, business investments, and major financial transactions.

What Information is Included in an ITR?

When you fill out an ITR, you need to disclose:

  • Personal Information: Name, PAN (Permanent Account Number), address, Aadhaar number, bank account details.

  • Financial Year & Assessment Year: The relevant years relating to your income and its assessment.

  • Income Details: Comprehensive inclusion of salaries, interest, rental income, business profits, capital gains, etc.

  • Deductions & Exemptions: Claims under sections such as 80C, 80D, HRA, and others that reduce taxable income.

  • Tax Paid: Details of advance tax, TDS (Tax Deducted at Source), TCS, and any self-assessment payments.

  • Refund Claims: If applicable, any refund sought for excess taxes paid.

  • Other Declarations: Foreign assets, directorships, shareholdings, etc., as now increasingly required for higher-income categories.

ITR as an Annual Declaration

ITR essentially functions as an annual financial health report, submitted at the end of every financial year (April–March). The declaration allows:

  • Tax authorities to match income declared with TDS deductions and third-party information.

  • Taxpayers to confirm or contest taxes paid and claim refunds.

  • The government to ensure tax compliance and collect statistical data for future policymaking.

E-Filing and Manual Filing

With advancements in technology, ITR can now be filed electronically (e-filing). Most taxpayers today file returns online via the Income Tax e-Filing Portal, which has made the process more accessible, transparent, and robust. Manual or physical filing is still allowed in certain rare cases (like super-senior citizens), but e-filing is the norm due to its convenience, speed, and ease of record-keeping.

Consequences of Not Filing an ITR

Not filing ITR when required exposes the taxpayer to:

  • Penalties and Interest: The law prescribes late fees, interest on unpaid taxes, and sometimes prosecution for willful evasion.

  • Loss of Refunds: You cannot claim any tax refund due unless you file.

  • Disqualification from Carry Forward Losses: Losses under certain heads (capital loss, business loss) can only be carried forward if ITR is filed before due dates.

  • Higher Tax Deduction at Source (TDS): Non-filers may face higher rates on TDS in certain transactions.

  • Difficulty in Loans and Visas: An ITR often acts as income proof; not having it can make availing loans, credit cards, or visas more difficult.

Example: The Journey of an ITR

Suppose Anil, a salaried professional living in Mumbai, earns ₹12 lakh in FY 2024–25. His employer deducts TDS, which is reflected in Form 16 and Form 26AS. When Anil sits down in June 2025 to file his ITR, he accesses the e-filing portal, selects ITR-1 (since his only income is salary and interest), fills in his details, adds deductions for his PF and ELSS investments, confirms the TDS figures, and submits the form. After e-verification, his return is processed, and he receives an intimation confirming acceptance. If Anil is eligible for a refund, it is usually credited within a few weeks.

ITR Versus Other Financial Documents

It’s important not to confuse ITR with statements like Form 16 (issued by employers), Form 26AS (a tax summary), or the Aadhaar/PAN card. While these documents are used to support your ITR, only the filed and acknowledged ITR is accepted as conclusive proof of income by various institutions (banks, immigration authorities, lenders, etc.).

Evolution and Strengthening of the ITR System

India’s ITR framework has evolved significantly over the years:

  • Simplified Forms: Sahaj (ITR-1) and Sugam (ITR-4) have made filing easier for salaried individuals and small businesses.

  • Digital Processing: Automation and quick refunds have replaced manual intervention.

  • Third-party Data Integration: The Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) now provide a consolidated view of financial data to both taxpayer and department.

  • Pre-filled Returns: For many, basic income and tax details come pre-filled on the portal, reducing manual effort and errors.

Social and Economic Importance of ITR

While an ITR is a mandatory tax compliance document, it also serves larger social and financial purposes:

  • Promotes Honesty: Encourages voluntary and truthful reporting of incomes.

  • Facilitates Inclusion: Helps the government identify deserving candidates for social and financial schemes.

  • Boosts Financial Credibility: Maintains a record of your financial discipline and integrity.

  • Supports Nation-building: Taxes collected via ITRs fund essential national services, infrastructure, and growth schemes.

2. Why is Filing ITR Important?

Filing an Income Tax Return (ITR) is not just a legal obligation but a significant financial responsibility with broad implications for individuals and entities. Understanding why filing ITR matters can motivate compliance and help taxpayers appreciate the benefits that go beyond mere statutory adherence. This comprehensive explanation explores the multiple dimensions of filing an ITR and its critical importance.

Legal Mandate and Avoidance of Penalties

One of the foremost reasons to file an ITR is its legal necessity. According to the Income Tax Act, anyone whose income exceeds the basic exemption limit is required to file an ITR annually. Non-filing or late filing can attract consequences such as:

  • Monetary penalties under various sections (e.g., Section 234F for late filing fee).

  • Interest charges on unpaid or short-paid tax (Sections 234A, 234B, 234C).

  • Prosecution and fines in cases of willful evasion.

  • Disallowance of tax benefits, such as carry-forward of losses.

Thus, timely filing safeguards you from avoidable legal complications.

Establishing Financial Identity and Credibility

An ITR filed with accurate details becomes a credible official record of your income and tax compliance. This documentation is essential for:

  • Loan approvals and credit facilities: Banks and financial institutions routinely require proof of income, and a filed ITR is often a prerequisite for home loans, personal loans, and credit cards.

  • Visa processing: For travel abroad, embassies and consulates frequently ask for recent ITR copies to verify your financial stability.

  • Government subsidies and schemes: Eligibility for certain benefits or government subsidies may require submitting proof of tax filing.

In effect, your ITR helps establish your financial identity.

Claiming Tax Refunds and Adjusting Tax Liability

If the tax deducted at source (TDS) or advance tax you have paid exceeds your actual tax liability, filing an ITR is necessary to claim a refund. Without filing, the government has no record of your excess payment, and a refund cannot be processed.

Moreover, by filing, you can:

  • Correct discrepancies or errors in TDS or tax payments.

  • Adjust advance tax installments and plan your tax liabilities more efficiently.

Hence, filing ITR enables efficient tax management.

Facilitating Carry Forward of Losses

If you incur losses in business, capital gains, or speculation, the Income Tax Act allows you to carry forward these losses for set periods (usually up to 8 years). However, this benefit is contingent upon filing your ITR within the prescribed deadline. Failure to do so results in the loss of this carry-forward opportunity, which could raise your tax burden in future years.

Transparency and Avoiding Scrutiny

A properly filed ITR reflects transparency in your financial transactions. It reduces the likelihood of your case being selected for scrutiny or audit unnecessarily, as the Income Tax Department matches your return with third-party data such as TDS certificates, bank statements, and AIS/TIS reports.

Supporting Financial and Personal Transactions

ITR documents serve as proof of income in various real-life scenarios, including:

  • Buying or selling assets such as property or vehicles.

  • Applying for passports where income proof is required.

  • Participating in tenders or contracts that demand financial disclosures.

Social and Ethical Contribution

Taxation is a vital part of nation-building, funding public services, infrastructure, health, and education. Filing ITR and paying your due taxes contributes to this collective social good, ensuring you fulfill your civic duty and support the country’s growth.

Avoiding Higher TDS and Restrictions

The government often mandates higher TDS rates for non-filers of income tax returns on specified transactions such as sale of immovable property, interest income, and dividends. Filing your ITR avoids these higher deductions, ensuring better liquidity.

Ease of Future Filings and Compliance

Filing ITR regularly simplifies future tax filings, as historical data, deductions, and declarations serve as a streamlined record. It also makes it easier to respond to any queries or notices from the department.

3. Who Should File Income Tax Return?

Filing an Income Tax Return (ITR) is mandatory for a variety of taxpayers depending on their income, profession, status, and financial activities. Knowing who is required or advised to file an ITR ensures compliance, avoids penalties, and helps taxpayers benefit from filing. Below is a detailed explanation of the categories and criteria of individuals and entities who should file an ITR in India.

1. Individuals with Income Above the Exemption Limit

Any individual resident or non-resident earning income exceeding the basic exemption threshold set by the Income Tax Department must file an ITR. For example, individuals earning more than ₹2.5 lakh per annum (for ordinary taxpayers below 60 years) are required to file an ITR.

This category includes:

  • Salaried employees

  • Pensioners with taxable income

  • Freelancers and consultants

  • Renters with rental income

  • Those earning interest, dividends, or any other taxable income

The exemption limit varies depending on age and status:

Age Group Basic Exemption Limit (INR)
Below 60 years 2,50,000
Between 60 and 80 years 3,00,000
Above 80 years (super senior citizens) 5,00,000

Individuals exceeding these limits must file ITR annually.

2. Businesses and Professionals

Persons carrying on business or profession must file ITR irrespective of income level. This applies especially to:

  • Sole proprietors

  • Partners in firms (partnerships)

  • Freelancers or consultants running a professional practice

If their income exceeds the exemption limit after deductions and expenses, filing is mandatory. Businesses also have to disclose profit and loss details, and submitting audited financial statements may be necessary depending on turnover.

3. Companies and Firms

All companies, whether private limited, public limited, or one-person companies (OPCs), and firms including limited liability partnerships (LLPs) are required to file ITR irrespective of income level or losses. Companies must adhere to stricter compliance including audit, reporting of tax payments, and other filings.

4. Non-Resident Indians (NRIs) with Taxable Income in India

NRIs who earn taxable income in India (such as rental income, business income, capital gains, or salary payments from Indian employers) must file ITR. Even if income earned outside India is exempt under the Double Taxation Avoidance Agreement (DTAA), Indian sourced income requires compliance.

5. Individuals Having Foreign Assets or Income

Taxpayers who hold foreign assets, deposits, or have income from abroad need to declare these details in their ITR. The government mandates disclosure under the Black Money Act, and failure to file can result in penalties and scrutiny.

6. Those Seeking Tax Refunds

Taxpayers who have had excess tax deducted at source (TDS), advance tax paid more than liability, or tax deducted on digital transactions need to file ITR to claim refunds.

7. Individuals with Specific Taxable Transactions or Professional Obligations

  • Those who have suffered loss and want to carry forward or set off losses.

  • Individuals required to comply with audit provisions of tax laws.

  • People holding directorship in companies.

  • Individuals receiving income from speculative business or commission agents.

  • Those involved in certain specified transactions like investments above certain limits, purchase or sale of property, etc.

Summary Table: Who Should File ITR?

Category Criteria
Individuals Income above exemption limit
Businesses & Professionals Earning income through business or profession
Companies & Firms All must file irrespective of income
NRIs Taxable income in India
Foreign asset holders Must disclose foreign assets or income
Refund claimants Excess tax paid or deducted
Specific transactions Carry forward losses, audit required, directorship, etc.

4. Types of ITR Forms and Their Applicability for FY 2025–26 (AY 2026–27)

Selecting the appropriate Income Tax Return (ITR) form is essential for accurate tax filing and compliance. The Income Tax Department prescribes different ITR forms based on the taxpayer’s category, sources of income, and other specific criteria. For the Assessment Year 2026–27, the following ITR forms are applicable:

ITR-1 (Sahaj)

  • Who should file: Resident individuals (not ordinarily resident) with total income up to ₹50 lakh from salary, pension, a single house property, and other sources excluding lottery or race winnings.

  • Exclusions: Income from more than one house property, capital gains, business or profession, and foreign assets/income.

  • Ideal for: Salaried employees and pensioners with straightforward income sources.

ITR-2

  • Who should file: Individuals and Hindu Undivided Families (HUFs) with income from salary/pension, multiple house properties, capital gains, foreign assets/income, or agricultural income exceeding ₹5,000.

  • Exclusions: Income from business or profession.

  • Ideal for: Taxpayers with complex income, multiple houses, or foreign assets.

ITR-3

  • Who should file: Individuals and HUFs with income from business or profession (including partners in firms), along with other income sources like salary, house property, capital gains, and trading income (stocks, derivatives, crypto).

  • Ideal for: Self-employed taxpayers, professionals, and partners.

ITR-4 (Sugam)

  • Who should file: Resident individuals, HUFs, and firms (excluding LLPs) with total income up to ₹50 lakh, and income from business or profession under presumptive taxation schemes (Sections 44AD, 44ADA, 44AE).

  • Exclusions: Those with dividend income above ₹10 lakh, income from more than one house property, foreign assets/income, or directors in companies.

  • Ideal for: Small businesses and professionals opting for presumptive taxation.

ITR-5

  • Who should file: Firms, Limited Liability Partnerships (LLPs), Association of Persons (AOP), Body of Individuals (BOI), estates, trusts (except charitable trusts under Section 11), and business trusts.

  • Exclusions: Individuals and HUFs.

  • Ideal for: Partnership firms, LLPs, co-operative societies, local authorities, and business trusts.

ITR-6

  • Who should file: Companies other than those claiming exemption under Section 11 (non-profit organizations).

  • Mandatory e-filing.

ITR-7

  • Who should file: Entities required to file under Sections 139(4A), 139(4B), 139(4C), and 139(4D), such as trusts, political parties, scientific research institutions.

  • Ideal for: Charitable/religious trusts, political parties, and certain notified institutions.

  • Filing the correct ITR form is crucial to avoid processing delays or notices from the tax department.

  • Even if you are not legally required to file based on income, you may file to claim refunds, carry forward losses, or establish financial records.

  • Review your income sources carefully before choosing the form to ensure compliance for AY 2026–27.

5. Documents Required for Income Tax Return Filing in India (FY 2025–26 | AY 2026–27)

Filing your Income Tax Return (ITR) accurately and on time is heavily dependent on gathering the right documents. Here is a comprehensive list with explanations on why each document is necessary:

Basic Personal and Identity Documents

  • PAN Card: Primary identification for tax records.

  • Aadhaar Card: Mandatory for e-verification and linking with PAN.

  • Bank account details: For direct deposit of tax refunds and completing the ITR form.

Income-Proof Documents

  • Form 16: Issued by your employer, details salary, deductions, TDS.

  • Form 26AS: Consolidated tax statement from the Income Tax Department showing TDS, advance tax, self-assessment tax, etc.

  • Annual Information Statement (AIS) & Taxpayer Information Summary (TIS): Consolidated records of all high-value financial transactions reported to the IT Department.

  • Salary slips: Useful for cross-verification of total income and allowances.

  • Interest certificates from banks/Post Office: For savings accounts, FDs, and recurring deposits.

  • Rental income documents: Rent agreements, receipts, municipal tax receipts.

  • Capital gain statements: If income from stocks, mutual funds, sale of property, etc.—obtain statements from depositories, brokers, or registrars.

Investment and Deduction Proofs

To claim deductions under various sections, keep these ready:

  • Investment proofs (Section 80C): PPF, NSC, ELSS, LIC premium, tuition fee receipts, home loan principal repayment, etc.

  • Health insurance/LIC premium (Section 80D/80C)

  • Interest certificate on home loan/education loan (Sections 24/80E)

  • Proof of donations (Section 80G)

  • Receipts for rent paid (if claiming HRA)

  • NRE/NRO account statements for NRI taxpayers

Other Essential Documents

  • Business income records, profit and loss account, balance sheet (for business/professional ITRs)

  • Books of accounts and balance sheet (compulsory for businesses/if turnover exceeds prescribed limits)

  • Foreign asset/income details (for residents with global income)

  • Loan interest certificates and EMI statements

Why These Documents Matter

Each serves as evidence either for income received or deduction/exemption claimed. The IT Department cross-verifies much of this data using AIS, TIS, and Form 26AS. Incomplete or incorrect documentation can result in mismatches, leading to scrutiny, delayed refunds, or even penalties.

Step-by-Step Process to File ITR Online (FY 2025–26)

E-filing is the easiest and most popular way to submit your ITR. Here’s the detailed workflow tailored for FY 2025–26:

1. Log in to the Income Tax e-Filing Portal

Open incometax.gov.in and log in with your PAN and password. First-time users must register.

2. Select Assessment Year and Mode

Choose AY 2026–27 (for FY 2025–26) and select ‘online’ as the filing mode, which is recommended for most taxpayers.

3. Choose the Correct ITR Form

Select based on your income sources as previously discussed.

4. Enter Personal and Income Details

  • Pre-fill or manually enter basic information and salary/income details.

  • Check for pre-loaded information from Form 26AS/AIS.

5. Claim Deductions and Exemptions

Declare all deductions (Sections 80C, 80D, 24(b), etc.) with the correct proofs where required.

6. Upload Required Documents

While no attachments are required, keep all proofs for your own record and in case of scrutiny.

7. Validate and Submit

Check all fields, ensure there are no mismatches, validate the summary, and submit the return.

8. E-Verify Your ITR

Complete the process by e-verifying within 30 days for completion (see more below).

You are absolutely right—for Financial Year (FY) 2025–26, all ITR-related deadlines, whether for standard returns, audits, or transfer pricing, fall in the subsequent Assessment Year (AY) 2026–27, i.e., in 2026, as the income for FY 2025–26 is reported, assessed, and taxed in the following year. Below is a fully corrected, detailed, and structured guide based strictly on all updated rules:

6. Income Tax Filing Deadlines for FY 2025–26 (AY 2026–27)

1. Key Return Filing Due Dates

Taxpayer Category Statutory Due Date (2026)
Individuals, HUFs (Non-Audit Cases), AOPs, BOIs 31st July 2026
Businesses/Firms/Companies Requiring Audit 31st October 2026
Taxpayers with International/Specified Domestic Transactions (Transfer Pricing cases) 30th November 2026
Belated or Revised Returns 31st December 2026
Updated Return (ITR-U) Four years from end of relevant AY (i.e., 31st March 2031 for AY 2026–27)

Note: If the Central Board of Direct Taxes (CBDT) notifies any extensions, the updated dates must be followed.

2. Meaning of Each Deadline and Sub-Point Explained

a. Original Return Filing (Section 139(1))

  • For most individual taxpayers, the ITR must be filed by 31st July 2026. This covers salaried employees, pensioners, and those with income not subject to audit.

  • Why important: Filing by this date means you avoid penalties and retain full loss set-off/carry-forward rights.

b. Tax Audit Cases (Section 44AB)

  • Firms, companies, and some professionals whose accounts require auditing (typically businesses with turnover above limits set by Section 44AB) must file their return and furnish the audit report by 31st October 2026.

  • Why important: Failure to meet the audit deadline can trigger heavy penalties, interest, and disallowance of specific deductions.

c. Transfer Pricing Returns (Section 92E)

  • Taxpayers involved in international transactions or specified domestic transactions requiring a transfer pricing report (Form 3CEB) get a further extension, with the ITR due by 30th November 2026.

  • Why important: Extra time is given due to the complexity of transfer pricing calculations and reporting.

d. Belated Return Filing (Section 139(4))

  • If you cannot file by your deadline (as above), you may still file a belated return by 31st December 2026.

  • Key point: Belated returns attract late fees and interest, and you lose the right to carry forward certain losses (business and capital losses). No carry-forward for most losses if filed after 31st July/31st October as applicable.

e. Revised Return Filing (Section 139(5))

  • If you discover mistakes after filing your original/belated ITR, you can revise it any time up to 31st December 2026 (if original was filed by due date).

  • Key point: Only timely-filed returns can be revised.

f. Updated Return Filing (Section 139(8A))

  • Even if you totally miss earlier windows, you get a rare chance to file an updated return (ITR-U) within four years from the end of the relevant Assessment Year (31st March 2031 for AY 2026–27), with additional tax and conditions.

3. Penalties and Consequences of Missing Due Dates (FY 2025–26 / AY 2026–27)

  • Section 234F (Late Fee):

    • ₹5,000 late fee if ITR is filed after due date but before 31st December 2026 (₹1,000 if income ≤₹5 lakh).

  • Section 234A (Interest):

    • 1% simple interest per month (or part) on tax unpaid, calculated from the original due date till filing.

  • Section 234B/234C:

    • For shortfall/deferment of advance tax installments, further interest is charged.

  • Loss of Loss Carry Forward:

    • Most losses (business/capital/speculative) cannot be carried forward unless the ITR was filed by the due date.

  • Possible scrutiny and delayed refunds: Late or wrong filing increases chances of scrutiny, may also delay refund processing.

  • Other legal outcomes: In serious cases, repeated or willful default may attract higher penalties or even prosecution.

4. Additional Compliance Points

  • E-Verification: Every filed ITR must be e-verified within 30 days of electronic submission, else it is treated as never filed.

  • Supporting papers: While supporting documents are not uploaded, all calculations must be supported in your records and produced if scrutinized.

5. Deadlines for TDS/TCS Returns (FY 2025–26)

Quarter TDS/TCS Return Due Date (2026)
April–June 2025 31st July 2025
July–September 2025 31st October 2025
October–December 2025 31st January 2026
January–March 2026 31st May 2026

Non-compliance with TDS/TCS return deadlines can draw penalties of ₹200 per day (up to TDS amount), plus interest for late payment.

Key ITR Deadlines for FY 2025–26 (AY 2026–27)

Filing Type Description Due Date
Original Return (Individual/HUF) Salaried, pensioners, non-audit businesses 31 July 2026
Audit Return (firms/companies) Businesses/firms/companies requiring audit 31 October 2026
Transfer Pricing/International Tx Audit + international/domestic specified tx cases 30 November 2026
Belated/Revised Return Applies if missed above deadlines 31 December 2026
Updated Return (ITR-U) Allowed up to 4 years from end of AY 31 March 2031

Best Practices

  • File early to avoid last-minute hassle, rush penalties, and interest.

  • Always check for government notifications or extensions.

  • Maintain all supporting documents for 6 years from the end of relevant AY.

  • Ensure all TDS, bank details, AIS/TIS numbers are checked for mismatch before submission.

Benefits of Filing ITR on Time (FY 2025–26)

Timely ITR filing offers multiple tangible and intangible advantages:

  • Claim tax refunds quickly: Especially for excess TDS paid.

  • Visa approvals: Most consulates/embassies work only with recent ITRs as income proof.

  • Easy loan and credit card approvals.

  • Acts as income and identity proof for high-value transactions.

  • Carry forward losses: Secure valuable tax benefits in future years.

  • Prevents penalties and scrutiny from the tax department.

  • Smooth financial operations: Essential for property purchases, investments, or government tenders.

Common Mistakes to Avoid While Filing ITR (FY 2025–26)

  1. Choosing the wrong ITR form: Leads to defective return.

  2. Not reporting all income sources: Omitting even small interest income can trigger notices.

  3. Mismatch in Form 26AS/AIS/TIS: Results in delays or inquiries.

  4. Incorrect personal/bank details: May delay refunds.

  5. Not reconciling TDS or pre-filled data: Always check against your records.

  6. Filing for the wrong Assessment Year: Should be AY 2026–27 for FY 2025–26 income.

  7. Forgetting to e-verify your return: An unverified return isn’t considered filed.

  8. Claiming bogus deductions: Can lead to heavy penalties or prosecution.

  9. Ignoring minor income: Include all, including old accounts or FDs.

How to E-Verify Your ITR (FY 2025–26)

You must e-verify your filed ITR within 30 days to complete the process. Options include:

  • Aadhaar OTP: Most common and fastest, directly linked to your Aadhaar-registered mobile.

  • Net banking login: Generate an EVC via your connected bank and verify on the portal.

  • Bank account EVC: If pre-validated, allows you to generate an Electronic Verification Code.

  • Demat account EVC: For investors/traders.

  • Digital Signature Certificate (DSC): Mandatory for some business categories but optional for individuals156.

What Happens After Filing ITR?

  • Processing by Centralized Processing Centre (CPC)

  • Intimation under Section 143(1): Confirms calculations, refunds, or additional tax owed.

  • Refund issuance (if applicable): Credited directly to your bank.

  • Revision or rectification: If you detect an error, file a revised return by 31 December 2025.

  • Scrutiny or assessment: In rare cases, you may be called for further inquiry; maintain all documents for at least 6 years.

Loss Carry Forward Rules (FY 2025–26)

  • Business loss: Can be carried forward up to 8 years but only if the return is filed within the due date.

  • Capital loss: Carry forward permitted for up to 8 years, subject to timely filing.

  • Speculative business loss: Carry forward allowed for up to 4 years.

  • Mandatory timely filing: Late returns result in forfeiture of these benefits.

7. Penalties for Late Filing or Non-Filing of ITR (FY 2025–26 | AY 2026–27)

Filing your Income Tax Return (ITR) on time is crucial to avoid financial and legal penalties. The Income Tax Act, 1961 prescribes specific penalties and interest provisions for late filing or non-filing. Here is a detailed explanation of the penalties, their applicable sections, and consequences based on FY 2025–26 rules and AY 2026–27 timelines.

1. Late Filing Fee (Section 234F)

  • If you file your ITR after the due date (i.e., after 31st July 2026 for individuals and 31st October 2026 for audit cases), you will be liable to pay a late filing fee.

  • The fee amount depends on your total income:

    • ₹5,000 if your total income exceeds ₹5 lakh.

    • ₹1,000 if your total income is ₹5 lakh or less.

  • The late fee is payable even if no tax is due or refund is claimed.

  • If the return is filed after 31st December 2026 (the last date for belated returns), no late fee is applicable, but the return cannot be filed belatedly — failure to file beyond this date leads to other penalties.

2. Interest on Delay in Filing (Section 234A)

  • Interest is charged at 1% per month or part of a month on the amount of tax unpaid (or shortfall of advance tax) from the due date of filing till the actual filing date.

  • The interest is calculated on the amount of tax payable after adjusting TDS and advance tax already paid.

  • This means that even if you file late but have no outstanding tax, this interest does not apply.

3. Interest on Shortfall of Advance Tax (Sections 234B and 234C)

  • Section 234B applies if you have not paid advance tax or underpaid it; interest at 1% per month is charged on the shortfall amount starting from April 1 of the assessment year until the date of actual payment.

  • Section 234C addresses deferment or short payment of each installment of advance tax, levying interest on each delayed installment.

  • These interest charges are over and above late filing fees and Section 234A interest.

4. Disallowance of Loss Carry Forward

  • One significant consequence of late filing is the disallowance of carrying forward certain losses to subsequent years.

  • Business or professional losses, capital losses, and speculative losses can only be carried forward if the return is filed within the due date.

  • Filing after the deadline forfeits the option to reduce taxable income in coming years, which can increase tax liability.

5. Other Penalties for Non-Filing or Evasion

  • The Income Tax Department may initiate penalties under other provisions for willful evasion, concealment of income, or failure to file a return in time.

  • Penalty amounts can extend to ₹10,000 or more depending on the severity of the violation.

  • Non-filing can also trigger an income scrutiny or audit, causing prolonged compliance hassles.

6. Impact on Refunds and Compliance

  • Filing late delays processing of refunds, as the Income Tax Department processes returns on a first-come-first-serve basis.

  • Untimely returns may also lead to notices, inquiries, or demands, complicating your tax affairs.

Penalties and Interest for Late Filing (FY 2025–26)

Penalty/Interest Type Section Details and Rate
Late Filing Fee 234F ₹5,000 if income > ₹5 lakh; ₹1,000 if ≤ ₹5 lakh
Interest on Late Filing 234A 1% per month on unpaid tax from due date to filing date
Interest on Advance Tax Shortfall 234B 1% per month on unpaid advance tax
Interest on Advance Tax Installments 234C 1% per month on deferred installment
Loss Carry Forward Disallowance – Only if ITR not filed within due date

Advice to Avoid Penalties

  • File your ITR well before the due date.

  • Pay advance tax timely and in the correct amount.

  • Keep track of due dates especially if you fall under audit or transfer pricing provisions which have later deadlines.

  • Ensure all income and tax payments (TDS, advance tax) are reported correctly to avoid mismatches.

  • E-verify your return within 30 days of submission to complete the filing process.

8. Benefits of Filing ITR on Time (FY 2025–26 | AY 2026–27)

Filing your Income Tax Return (ITR) promptly is not just about staying legally compliant; it is a foundation for your financial credibility, opportunities, and peace of mind. Below, you’ll find an in-depth breakdown of the tangible and intangible benefits of timely ITR filing, fully aligned with the rules for FY 2025–26.

1. Legal Compliance & Avoiding Penalties

Filing before the due date (31 July 2026 for most individuals; 31 October/30 November 2026 for audits/transfer pricing) ensures you are on the right side of the law.

  • No late fee (Section 234F): On-time filers avoid automatic ₹1,000–₹5,000 penalties.

  • No interest on late payment (Section 234A): Avoids any 1% monthly interest on tax dues.

  • Preserves your right to respond easily in case of scrutiny.

2. Financial Transparency & Documented Income

A filed and acknowledged ITR serves as an official proof of your annual income and taxes paid/claimed.

  • Banks and NBFCs require ITRs for loan approvals (home, auto, personal) and issuing high-value credit cards.

  • Embassies/Consulates often demand recent ITRs when assessing your visa/travel eligibility.

  • High-value transactions (over ₹10 lakh) with mutual funds, real estate, or insurance may require ITR copies as proof of sources.

3. Claiming Tax Refunds

If you have paid excess tax (via TDS, TCS, or advance/self-assessment tax), filing a return is the only way to claim a refund.

  • Faster processing: Returns filed sooner tend to get processed (and refunds issued) earlier.

  • No refund without ITR: Not filing means any excess tax stays with the government.

4. Carry Forward of Losses

Only returns filed by the due date allow you to carry forward losses as follows:

  • Business and Speculative Losses: Carry forward up to 8 and 4 years, respectively, for set-off in future years.

  • Capital Losses: Also carried forward for 8 years, reducing future tax liability.

Missing the due date forfeits this right for that year.

5. Enhanced Loan & Credit Profile

  • ITR acknowledgments are required by almost every major bank for loans above certain thresholds, business loans, and high-limit credit cards.

  • Startups and founders need timely ITRs for fundraising, government schemes, and for regulatory eligibility.

6. Comfort in Scrutiny & Transparency

A timely, accurate ITR reduces the chance of notices and ensures you have clean, documented evidence of all financial affairs.

  • Taxpayer Information Summary (TIS) and AIS are automatically compared with your ITR, and early, accurate filing means less likelihood of mismatch-based queries.

  • Prevents future scrutiny: Timely filing prevents the risk of high-pitched assessments, especially if income has increased suddenly.

7. Visa Applications and International Travel

  • Many countries (USA, UK, Schengen, Australia, Canada, UAE, etc.) ask for at least 2–3 years’ ITRs as evidence of financial status and honest income reporting.

  • Essential for family members or business partners applying with you for foreign visits.

8. Smooth Entry for High-Value and Regulated Insurance Products

  • Some high-value insurance (life/term above ₹1 cr, ULIPs, pension funds, etc.) requests ITR copies for due diligence and risk assessment.

9. Aids in Government Tenders & Contracts

  • Central and State government tenders, contracts, and even PSU job applications may require ITRs for eligibility or financial documentation.

10. Helpful in Future Tax Planning and Updates

  • Prior year ITR data simplifies future filing and helps you catch mistakes, claim carried-forward losses, or explain income variations if needed.

Maximizing ITR Filing Benefits

  • File as early as possible after 1 April 2026 once your income and tax data is available.

  • Keep all supporting evidence organized for at least 6 years post filing.

  • Always double-check AIS, TIS, and Form 26AS against your declared details.

  • E-verify your ITR within 30 days to complete the filing process.

9. Common Mistakes to Avoid While Filing ITR (FY 2025–26 | AY 2026–27)

Filing your Income Tax Return (ITR) is a critical annual financial task. While the process has become more streamlined, mistakes—minor or major—can lead to notices, delayed refunds, or even penalties. Here’s a detailed guide to the most common mistakes taxpayers make when filing ITR for FY 2025–26 and how to avoid them, along with in-depth explanations of each sub-point.

1. Choosing the Wrong ITR Form

  • Impact: Selecting an incorrect form often leads to your return being declared “defective,” resulting in notices and requiring a corrected submission.

  • How to avoid: Review your income sources thoroughly and refer to the ITR form eligibility table for AY 2026–27. For example, if you have capital gains or foreign assets, use ITR-2 instead of ITR-1. If you run a business or are a partner in a firm, ITR-3 may be applicable.

2. Mismatch in Form 26AS / AIS / TIS

  • Impact: A mismatch between your reported income and the amounts shown in your Form 26AS, Annual Information Statement (AIS), or Taxpayer Information Summary (TIS) can result in scrutiny notices.

  • How to avoid: Always download and verify Form 26AS and AIS/TIS from the Income Tax Portal. Reconcile all TDS credits, advance tax, and reported transactions with your own records before filing.

3. Not Reporting All Income Sources

  • Impact: Omission of any income, including small or irregular sources (such as bank account interest, freelance income, fixed deposit interest, share/mutual fund redemptions, lottery wins, or past employer PF withdrawals), may lead to inquiries, re-assessment, or penalties.

  • How to avoid: Declare all income, even if no TDS was deducted or it seems insignificant. Remember to aggregate minor incomes from all bank accounts, previous employers, or side projects.

4. Incorrect Bank Account Details

  • Impact: Entering an incorrect bank account or IFSC code can delay tax refunds or even result in a failed refund transaction.

  • How to avoid: Double-check the account number and IFSC, and ensure your chosen account is validated on the e-filing portal.

5. Forgetting to E-Verify the ITR

  • Impact: Your ITR is considered “unfiled” unless e-verified within 30 days of submission. This voids your filing and can result in late fees after rectification.

  • How to avoid: E-verify instantly by Aadhaar OTP, net banking, or other enabled methods right after submission. Track the status on the portal until you see “Successfully verified.”

6. Ignoring AIS/TIS or Data Mismatches

  • Impact: The Income Tax Department collects data from banks, brokers, registrars, and reporting entities. Mismatches between your ITR and this consolidated data (AIS/TIS) attract queries or high-pitched assessments.

  • How to avoid: Cross-check all high-value transactions, interest credits, share sales/purchases, and property transactions listed in AIS/TIS and ensure they are reflected in the ITR.

7. Filing For the Wrong Assessment Year

  • Impact: Filing for an incorrect year (for example, choosing AY 2025–26 instead of AY 2026–27 for FY 2025–26 income) means your return is not counted for the year in question, causing refund delay and compliance issues.

  • How to avoid: Always select Assessment Year 2026–27 when reporting income for FY 2025–26.

8. Not Reconciling TDS, Advance Tax, and Pre-filled Data

  • Impact: Differences between TDS credits available in Form 26AS/AIS and what you claim can delay processing and trigger intimation under Section 143(1).

  • How to avoid: Ensure TDS, advance tax, and self-assessment tax data in the ITR match exactly with the figures in your official records.

9. Claiming Bogus or Unsupported Deductions

  • Impact: Artificially inflating deductions under Sections 80C, 80D, etc., without valid proofs can lead to penal action, disallowance of claims, or, in serious cases, prosecution.

  • How to avoid: Only claim deductions for which you have genuine, valid receipts or certificates (such as LIC premiums, tuition fees, medical insurance, or donations).

10. Ignoring or Underreporting Minor Income

  • Impact: Leaving out small items like savings/FD interest, dividends, or income from other sources may appear as under-reporting in the tax department’s automated matching, potentially resulting in penalties.

  • How to avoid: Include all income regardless of amount or whether tax has been deducted at source.

Practices to Prevent Mistakes

  • Start early and keep all records (Form 16, 26AS, AIS, salary slips, investment proofs) organized.

  • Validate your return summary thoroughly before submission.

  • Consult a tax expert if your return involves business income, foreign assets, or complex transactions.

  • Retain acknowledgment, e-verification confirmation, and all evidence for at least six years.

By avoiding these common pitfalls, you ensure a smooth, hassle-free ITR filing experience, minimize the risk of notices, and maximize the chance of quick refund and long-term compliance.

10. How to E-Verify Your ITR After Filing (FY 2025–26 | AY 2026–27)

After successfully submitting your Income Tax Return (ITR) for FY 2025–26, your return is not considered “filed” until you complete the e-verification process within 30 days of submission. Missing this critical step means your ITR will be treated as invalid, potentially resulting in late fees and loss of carry-forward benefits. Here’s a full breakdown of all available e-verification methods, the details of each, and best practices for a smooth finish.

1. E-Verify via Aadhaar OTP

  • How it works: If your Aadhaar is linked to your PAN and your mobile number is updated with Aadhaar, you can generate a one-time password (OTP) and enter it on the e-filing portal.

  • Why it’s preferred: Fastest, most user-friendly for individual taxpayers.

  • Step-by-step:

    • On the e-filing portal, choose ‘e-Verify using Aadhaar OTP.’

    • Ensure your Aadhaar details match those in PAN and ITR.

    • Enter the OTP sent to your Aadhaar-registered mobile number.

    • On success, you’ll see an “e-Verification Successful” message.

2. E-Verify via Net Banking

  • How it works: Most major banks offer direct login to the Income Tax e-filing portal using the Net Banking option.

  • Key points: The PAN must be linked to the selected bank account, and you should have internet banking enabled.

  • Step-by-step:

    • Log in to your net banking account.

    • Find and click the Income Tax e-filing or tax services tab.

    • Access the e-filing account and select the ITR pending e-verification.

    • Complete the process on the portal; confirmation will be displayed.

3. E-Verification via Bank Account EVC

  • How it works: If you have pre-validated your bank account on the income tax portal, you can generate an Electronic Verification Code (EVC), which is then used to verify your return.

  • Step-by-step:

    • Select ‘e-Verify using Bank Account EVC’ on the portal.

    • Enter the EVC received on your registered mobile/email.

    • Submit for instant verification.

4. E-Verify via Demat Account EVC

  • How it works: For taxpayers with an active, validated demat account, an EVC can also be generated for ITR e-verification.

  • Key points: Ideal for investors, traders, and those with demat holdings.

  • Step-by-step:

    • Pre-validate your demat account details on the portal beforehand.

    • Select the option and enter the generated code to complete verification.

5. E-Verify using Digital Signature Certificate (DSC)

  • Who should use: Mandatory for companies and certain types of professionals, optional for others.

  • How it works: Upload and register your DSC on the portal, then use it for instant authentication.

  • Technical note: Ensure you use the latest utility and have Java enabled for DSC use.

What if You Can’t E-Verify Online?

If you’re unable to e-verify online (due to technical snag, lack of access, or non-updated credentials), you may send a signed physical ITR-V (Verification form) by ordinary post or speed post to the Centralized Processing Centre (CPC), Bengaluru within 30 days of filing. However, this physical option is becoming increasingly obsolete and is used only as a last resort.

e-Verification Acknowledgement

  • Once successfully e-verified, you will receive an email and SMS confirmation from the Income Tax Department.

  • Your ITR status will change from “Pending for e-verification” to “Successfully e-verified” or “Verified” on the portal.

  • No further action is required unless you receive an intimation or notice about the return.

E-Verification

  • Always e-verify on the same day you file your ITR to avoid forgetting or system delays.

  • Double-check that your mobile and email are updated in both PAN and Aadhaar databases.

  • Save the e-verification acknowledgment PDF for your records.

  • Regularly log in to the IT portal to confirm your return status post e-verification.

Why E-Verification Is Mandatory

  • Your ITR is invalid if not e-verified within 30 days.

  • Invalid returns can’t be processed for refunds, loss carry forward, or basic compliance.

  • Delayed e-verification may require re-filing the return with penalties.

11. What Happens After Filing ITR? (FY 2025–26 | AY 2026–27)

Filing and e-verifying your Income Tax Return (ITR) are vital steps, but understanding what happens next in the process—and knowing how to track your return status and respond appropriately—is equally crucial. Here’s a comprehensive, step-by-step overview of the post-filing journey for your ITR for FY 2025–26:

1. Processing by the Centralized Processing Centre (CPC)

  • Who handles it?
    All electronically filed returns are received and processed centrally by the Income Tax Department’s Centralized Processing Centre (CPC) in Bengaluru.

  • How long does it take?
    Processing time varies (from a few days to a few months), but e-filing and e-verification accelerate the queue.

  • What is checked?
    CPC checks:

    • Accuracy of entries.

    • Reconciliation of tax paid (TDS, advance tax, self-assessment) vs. income reported.

    • Deduction claims and bank account details.

    • Data matches with Form 26AS, AIS, TIS.

2. Issue of Intimation under Section 143(1)

  • What’s Section 143(1)?
    Every validly filed ITR is processed under Section 143(1), and an “Intimation” is generated—this is an official communication from the department. It’s sent by email and SMS, and downloadable from the e-filing portal.

  • Types of intimations:

    • No demand, no refund: Your calculations match CPC’s; no action needed.

    • Refund due: Excess tax paid; refund will be credited to your linked bank account.

    • Tax demand raised: Discrepancy found; pay outstanding tax as per the notice.

Check all figures in the intimation. Respond promptly if you disagree or detect errors.

3. Refund (if applicable)

  • If a refund is due (because TDS or advance/self-assessment tax paid exceeds your tax liability):

    • The refund is credited directly to your validated bank account.

    • Status can be tracked on the e-filing portal or NSDL refund status page.

    • Mismatch in bank details may delay the process—ensure your account is pre-validated.

  • Refund timeline: Usually within a few weeks after intimation, but may be delayed if returns require additional processing or manual verification.

4. Scrutiny and Further Notices (if selected)

  • While most returns are accepted as filed, a small percentage are selected for scrutiny or detailed assessment.

  • Notice under Sections 143(2), 142(1), etc., is sent if the IT Department needs more information or documents.

  • Always respond within the timeline using the e-filing portal’s “e-Proceedings” section.

5. Revision or Rectification (if needed)

  • Revision (Section 139(5)):
    If you detect a genuine error in your filed return (like missed income, deduction error, or data mismatch), you can revise your ITR any time up to 31 December 2026 for FY 2025–26—provided the original was filed on time.

  • Rectification (Section 154):
    If you spot a clerical or evident factual error in processing (such as mismatch in TDS credit or calculation mistake), you can apply for rectification online.

6. Completion of Assessment

  • Most returns are processed automatically under Section 143(1), and no further action is needed unless you receive a notice.

  • If selected for detailed or manual assessment, you’ll be issued notices and have the right to respond and submit further documentation.

  • Maintain all income proofs, investment receipts, and bank statements for six years from the end of the assessment year (i.e., up to 31 March 2033 for FY 2025–26).

7. Record-Keeping and Status Monitoring

  • Make a habit of downloading and saving:

    • Filed ITR acknowledgment (ITR-V)

    • E-verification confirmation

    • Intimation under Section 143(1)

    • Refund/rectification orders

  • Use the e-filing portal’s “My Account” > “View Returns/Forms” to track the status at any stage.

12. Kyna FinTax — Income Tax Return Filing

In India, filing your Income Tax Return (ITR) is not just a statutory compliance but the foundation for your financial future and growth. At Kyna FinTax, we see ITR filing not as an annual ritual but as a step towards Financial Empowerment. What you need is a fresh approach—where filing your ITR becomes not just about following the law, but a gateway to unlocking growth and new opportunities.

Kyna FinTax Approach: Beyond Filing — Financial Upscaling!

1. Pre-Filing Tax Planning

We begin every client engagement with proactive tax planning — organizing investment proofs, identifying tax-saving options, and planning exemptions well in advance. This prevents last-minute rush, missing documentation, or overlooked deductions.

2. Digital & Hassle-Free Document Collection

With our client-friendly online portal and a mobile-first ecosystem, you can upload PAN, Aadhaar, Form 16/26AS, investment proofs, and bank details securely and easily from anywhere — all encrypted and just a click away.

3. Comprehensive Data Reconciliation

We perform thorough cross-verification across Form 26AS, Annual Information Statement (AIS), Taxpayer Information Summary (TIS), salary slips, investments, and loan details. This ensures no mismatches, missed incomes, or errors that could trigger departmental notices or refund delays.

4. Customized Deduction & Exemption Optimization

We offer personalized guidance tailored to your category — whether salaried employee, business owner, professional, NRI, or senior citizen — maximizing benefits under sections like 80C, 80D, 24(b), HRA, LTA, and donations.

5. Smart Summary & Pre-Submission Review

Before filing, you receive a detailed summary highlighting expected tax payable or refund, deductions claimed, carry-forward losses, bank validation, and payment details—ensuring nothing is missed.

6. Instant E-Filing, E-Verification & Acknowledgement

Your ITR is filed and e-verified within minutes, with digital acknowledgement sent instantly—removing any fear of missed verification and ensuring full compliance.

7. Post-Filing Monitoring & Dedicated Support

We continuously track your ITR status, refund processing, and any tax notices or intimation under Section 143(1). Our dedicated CA-assigned helpdesk is available via email, phone, or WhatsApp for timely support whenever you need it.

8. Year-Round Advisory & Secure Document Storage

All your documents, filing history, and proof of deductions are securely maintained. Additionally, year-round advisory on tax planning, GST, advance tax instalments, or investment opportunities keeps you ahead financially.

Our Promise: Making Tax Filing a Positive Experience

  • Simple language with minimal jargon for full clarity.

  • AI-powered error checks and a completely paperless ecosystem.

  • Commitment to filing within fixed timelines for every client.

  • Strong data security and client confidentiality.

  • Personalized reminders for due dates, refund status, and tax payments.

A New Beginning—ITR Filing as a Growth Catalyst

At Kyna FinTax, we transform tax filing from a stress-inducing task to an empowering experience, helping you build better loan eligibility, smooth visa approvals, and long-term wealth creation.

Kyna FinTax — Where ITR filing isn’t just a compliance duty, but a unique and empowering financial journey. Make every ITR filing a new chapter in your growth story!

(Helping your business, growth, and family goals become easier with expert compliance and advisory.)

Frequently Asked Questions (FAQ) for Income Tax Return (ITR) Filing — FY 2025–26 (AY 2026–27)

Here is a comprehensive FAQ list covering every important aspect of ITR filing in India for the current financial and assessment year:

1. Who needs to file an Income Tax Return?

Anyone whose total income exceeds the basic exemption limit (₹2.5 lakh for those below 60, ₹3 lakh for 60–80, ₹5 lakh for 80+) must file an ITR. Even if income is below this, it’s necessary if you want to claim a refund, have foreign assets, or to apply for loans/visas, etc.

2. What are the various types of ITR forms for FY 2025–26?

There are seven forms: ITR-1 (Sahaj), ITR-2, ITR-3, ITR-4 (Sugam), ITR-5, ITR-6, ITR-7. Each caters to specific income types and taxpayer categories: salary, business, capital gains, firms, companies, or trusts.

3. How do I select the correct ITR form?

Your sources of income and taxpayer type (individual, HUF, company, etc.) determine the form. The official portal provides a “Help me decide: Which ITR to file?” utility to guide you. Salaried individuals with total income up to ₹50 lakh generally use ITR-1.

4. What is the due date for filing ITR for FY 2025–26?

  • Most individuals (non-audit): 31st July 2026.

  • Businesses/audit cases: 31st October 2026.

  • Transfer pricing cases: 30th November 2026.

  • Belated/revised returns: 31st December 2026.

5. Can I file ITR after the due date?

Yes, you can file a belated return before 31st December 2026, with a penalty. Filing further late is possible using ITR-U with additional tax and penalty for up to 4 years after the end of the AY.

6. What is required to file an ITR?

  • PAN, Aadhaar.

  • Bank details.

  • Form 16, 26AS, AIS/TIS.

  • Proofs for deductions/ investments.

  • All relevant income and expenditure details.

7. Is attaching physical documents to the ITR mandatory?

No documents, receipts, or proofs need to be attached with the online ITR. Keep them for your records and departmental reference if called for scrutiny.

8. How can I file my ITR?

You can file online via the Income Tax Portal using the e-filing utility or offline through the official software. Both modes allow validation and submission after login with your PAN credentials.

9. How do I e-verify my return, and why is it compulsory?

E-verification (within 30 days) is mandatory for validity. Methods include Aadhaar OTP, net banking, bank account EVC, demat EVC, or by sending the signed ITR-V to CPC, Bengaluru.

10. What’s the difference between the old and new tax regime?

Starting from AY 2024–25, the new tax regime is the default. You can opt for the old regime for more deductions. Choose the regime every year as per your planning; the system will enable/disable deductions accordingly.

11. Can I revise my return if I make a mistake?

Yes, a filed return can be revised until 31st December 2026, provided the original was timely filed. After this, only an updated return (ITR-U) is possible under certain conditions with additional tax.

12. What happens if I miss the e-verification process?

If not completed within 30 days, your ITR is treated as invalid — you need to re-file with possible penalties.

13. Are NRIs required to file an ITR in India?

NRIs must file if they have taxable income in India, own foreign assets/income, or for carry-forward/loss set-off or refund claim purposes.

14. Which deductions am I eligible for?

All eligible deductions under Section 80C, 80D, 24(b), HRA, LTA, etc., can be claimed if you opt for the old regime. Fewer are available in the new regime.

15. Is ITR filing necessary to claim a tax refund?

Absolutely. If TDS is deducted or advance/self-assessment tax paid exceeds your liability, you can get your refund only by filing ITR.

16. What are the penalties for late ITR filing?

Penalties go up to ₹5,000 if your income exceeds ₹5 lakh (₹1,000 if ≤₹5 lakh). Interest is charged for delayed tax payment. Losses cannot be carried forward and refunds get delayed.

17. How do I track my refund?

You can check your refund status on the Income Tax Portal or the NSDL website using your PAN and assessment year details.

18. What are the common mistakes to avoid?

  • Choosing the wrong ITR form.

  • Not reporting all incomes.

  • Mismatch in Form 26AS/AIS/TIS.

  • Incorrect bank/account details.

  • Missing e-verification.

  • Ignoring minor interest incomes.

19. Can I file ITR on my mobile phone?

Yes, the income tax portal is mobile-optimized. You can use it via browser or app for secure document upload and e-filing.

20. How long should I retain my tax documents?

Keep all documents for at least 6 years from the end of the relevant assessment year, in case the department picks your return for scrutiny.

21. What if my income is below the taxable limit, but I want to claim TDS refund?

You can (and should) file an ITR to claim any TDS refund, regardless of income level.

22. Can business owners and freelancers use ITR-1?

No, only salaried/pensioners with uncomplicated incomes and no business/professional receipts can use ITR-1. Use the correct form (ITR-3 or ITR-4) based on income nature.

23. Who cannot file ITR-1 (Sahaj)?

If you have income from capital gains, more than one house property, business/profession, foreign assets/income, or are a company director/shareholder in an unlisted company, you cannot use ITR-1.

24. Are there any recent updates to ITR filing for this year?

Major changes include detailed capital gains disclosures, new rules for reporting HRA, and stricter validation for salary and investment details. Always consult the latest forms and guidelines.

25. How can Kyna FinTax help me with ITR filing?

Kyna FinTax offers end-to-end support: tax planning, document review, online ITR preparation, e-verification, refund tracking, and expert CA helpdesk — ensuring compliance, accuracy, and a stress-free experience.

If you have questions beyond these, consult Kyna FinTax for personalized guidance and seamless ITR filing.