If you are wondering how to file your ITR for AY 2026-27, you have picked an unusual year to learn. The return covers income earned in FY 2025-26, but the calendar around it has shifted, and a brand new tax law now sits in the background.
The Central Board of Direct Taxes (CBDT) notified all seven ITR forms on 30 March 2026, so the filing window is already open. This guide walks you through the full process, from confirming whether you even need to file, to picking the correct form and regime, to hitting submit and e-verifying.
Quick answers
Who has to file an ITR for AY 2026-27?
Anyone whose gross total income before deductions crosses the basic exemption limit, plus several mandatory categories regardless of income.
What period does AY 2026-27 cover?
Income earned from 1 April 2025 to 31 March 2026 (financial year 2025-26).
When is the ITR due date?
For most individuals not requiring audit, 31 July 2026. Audit cases get 31 October 2026.
Which law governs this return?
The Income Tax Act, 1961, even though the new Income Tax Act, 2025 took effect on 1 April 2026.
What if I miss the deadline?
You can file a belated return up to 31 December 2026 with a late fee under Section 234F.
Which tax regime applies by default?
The new regime under Section 115BAC is the default; you must actively opt for the old regime.
What is an income tax return?
An income tax return is a form filed with the Income Tax Department of India under the Income Tax Act, 1961, declaring your income, the tax already paid, and any refund due or balance payable for a financial year. It is filed on the e-filing portal at incometax.gov.in.
The assessment year (AY) is the year in which the previous year's income is taxed. So AY 2026-27 assesses the income you earned during FY 2025-26 (1 April 2025 to 31 March 2026). Even though the new Income Tax Act, 2025 came into force on 1 April 2026, this particular return is governed entirely by the old Act, because the income relates to a period before that date.
Key terms you will see on the portal
- AY (Assessment Year): the year you file and pay tax in. Select AY 2026-27 for FY 2025-26 income.
- Form 26AS: a consolidated tax statement showing TDS, TCS, advance tax, and high-value transactions.
- AIS (Annual Information Statement): a wider record of your financial transactions reported to the department by banks, employers, and others.
- TDS (Tax Deducted at Source): tax your payer deducts and deposits against your PAN before paying you.
- Section 115BAC: the provision under which the new tax regime operates as the default option.
Who must file a return for AY 2026-27?
You must file if your gross total income (before Chapter VI-A deductions) exceeds the basic exemption limit applicable to you. Filing is also mandatory irrespective of income in several situations.
- You deposited more than Rs 1 crore in one or more current accounts during the year.
- You spent more than Rs 2 lakh on foreign travel for yourself or another person.
- Your electricity bills crossed Rs 1 lakh in the year.
- You hold any asset outside India or have signing authority over a foreign account, as a resident.
- Your TDS and TCS together were Rs 25,000 or more (Rs 50,000 or more for senior citizens).
Even when filing is not compulsory, a voluntary return helps with loan approvals, visa applications, and claiming a refund of excess TDS.
The legal framework: old Act, new regime as default
AY 2026-27 returns are assessed under the Income Tax Act, 1961, administered by the CBDT. The forms run from ITR-1 to ITR-7 and were notified on 30 March 2026.
The new tax regime under Section 115BAC is the default for AY 2026-27. If you want the old regime with its deductions and exemptions, you must actively select it. Salaried individuals without business income can switch between regimes each year while filing on time; taxpayers with business or professional income face tighter switching rules and may need to file Form 10-IEA. Our new vs old regime comparison works through the maths.
How to file your ITR for AY 2026-27, step by step
- Gather your documents. Keep your PAN, Aadhaar, Form 16 (for salary), Form 26AS, the AIS, interest certificates, capital gains statements, and proof of any deductions you plan to claim.
- Log in to the e-filing portal. Go to incometax.gov.in and sign in with your PAN as the user ID. First-time users register and verify identity through an Aadhaar OTP or net banking.
- Start a new return. Navigate to e-File, then Income Tax Return, and select Assessment Year 2026-27 and the mode of filing (online or the offline Excel/JSON utility).
- Select the correct ITR form. Choose the form that matches your income sources. The portal can pre-select a form, but you remain responsible for confirming it.
- Choose your tax regime. Pick the new or old regime. Compare both, because the better choice depends on the deductions you can claim.
- Verify pre-filled data. Cross-check the pre-filled salary, TDS, and interest figures against your Form 26AS and AIS. Correct any mismatch before it triggers a notice.
- Enter income and deductions. Add income the portal did not pre-fill, then claim eligible deductions if you are on the old regime.
- Pay any balance tax. If tax is payable, pay it online and record the challan details in the return.
- Submit and e-verify. Submit the return, then e-verify within 30 days through Aadhaar OTP, net banking, or a pre-validated bank account. A return that is not verified is treated as not filed.
Documents and prerequisites checklist
- PAN and Aadhaar, with the two linked.
- Form 16 from your employer, if salaried.
- Form 26AS and the Annual Information Statement, downloaded from the portal.
- Bank interest certificates and capital gains statements from brokers or mutual funds.
- Proof of deductions (insurance premium receipts, home loan interest certificate, donation receipts) if claiming under the old regime.
- A pre-validated bank account for any refund.
Which ITR form should you use?
| Form | Who it is for | Key limit / note |
|---|---|---|
| ITR-1 (Sahaj) | Resident individual with salary, one house property, and other income | Total income up to Rs 50 lakh |
| ITR-2 | Individuals and HUFs with capital gains, more than one house, or who are company directors or hold unlisted shares | No business or professional income |
| ITR-3 | Individuals and HUFs with income from business or profession | Includes F&O and proprietary business |
| ITR-4 (Sugam) | Resident individual, HUF, or firm (not LLP) under presumptive taxation | Total income up to Rs 50 lakh |
| ITR-5 to ITR-7 | LLPs, firms, companies, trusts, and similar entities | Entity-specific |
Our detailed guide on which ITR form to file covers the edge cases.
Common ITR filing mistakes to avoid
- Choosing the wrong form. The return can be treated as defective under Section 139(9). Match the form to every income source before you start.
- Ignoring the AIS. Income reported to the department but missing from your return invites a mismatch notice. Reconcile the AIS and Form 26AS with your own records first.
- Forgetting to e-verify. An unverified return is treated as never filed. E-verify within 30 days of submission.
- Picking the regime blindly. You may pay more tax than necessary. Compute liability under both regimes before deciding.
Penalties and consequences for late or wrong filing
Filing a belated return after the due date attracts a late fee of Rs 5,000 under Section 234F, reduced to Rs 1,000 where total income does not exceed Rs 5 lakh.
Tax paid late carries interest at 1 percent per month under Section 234A, in addition to interest under Sections 234B and 234C for shortfalls in advance tax.
A belated return cannot be filed after 31 December 2026 for AY 2026-27; beyond that, your only route to report missed income is an updated return (ITR-U) under Section 139(8A), which carries additional tax.
How the provisions fit together
Section 139(1) sets the original due date, while Section 139(4) allows a belated return up to 31 December and Section 139(5) allows a revised return to correct errors within the same window.
Section 234F imposes the late fee whenever a return is filed after the Section 139(1) due date, and Section 139(8A) provides the updated return as a last resort once the belated and revised windows close.
New regime vs old regime at a glance
| Feature | New regime (default) | Old regime (opt-in) |
|---|---|---|
| Tax slabs | Wider, lower rates | Narrower, higher rates |
| Common deductions | Most not available | Available (80C, 80D, HRA, home loan interest) |
| Standard deduction (salary) | Available | Available |
| Best suited to | Filers with few deductions | Filers with significant deductions |
| How to choose | Applies automatically | Select while filing (Form 10-IEA for business income) |
Key takeaways
- AY 2026-27 covers FY 2025-26 income and is filed under the Income Tax Act, 1961.
- The non-audit due date is 31 July 2026; audit cases get 31 October 2026.
- The new regime under Section 115BAC is the default, so opt for the old regime only if it saves you more.
- A belated return is allowed up to 31 December 2026 with a Section 234F late fee.
- A return is incomplete until you e-verify it within 30 days.
Frequently asked questions
Is the new tax regime compulsory for AY 2026-27?
No. The new regime is the default, but you can still opt for the old regime while filing. Salaried filers can switch each year if they file by the due date.
Can I file my ITR after 31 July 2026?
Yes, as a belated return up to 31 December 2026, with a late fee under Section 234F and interest on any unpaid tax.
Do I need to file if my income is below the exemption limit?
Not always, but filing is mandatory in specific cases such as large deposits, high electricity bills, or foreign assets, and is useful for loans and visas.
What is the difference between Form 26AS and the AIS?
Form 26AS focuses on tax credits like TDS and advance tax, while the AIS is a broader statement of your financial transactions reported to the department.
How long do I have to e-verify my return?
You must e-verify within 30 days of submitting the return, failing which it is treated as not filed.
Which ITR form do salaried people usually file?
ITR-1 if total income is up to Rs 50 lakh from salary, one house, and other sources. ITR-2 applies if you have capital gains or are a director.
What happens if I file the wrong ITR form?
The return may be treated as defective under Section 139(9), and you will be asked to correct and refile it within the time allowed.
Need a hand with a more complex return?
If your return involves capital gains, business income, foreign assets, or a past notice, professional support saves time and reduces risk. You can learn more about how the Regikart team handles return preparation and review on our income tax filing page, or contact us / WhatsApp +91 70444 94804 (Mon-Sat, 9 am-7 pm IST).
About the author
Regikart CA Team
Chartered Accountants at Regikart. Want to discuss this in the context of your business?
