🚨 ITR filing for FY 2025-26 is now open (April 1 – July 31, 2026 for individuals). Which form to use, what deductions to claim, refund estimation, and capital gains tax — all in plain language. Governed by Budget 2025 rules. No CA required for most salaried filers.
For resident individuals with: only salary/pension income, income from one house property, other income (interest, dividends) up to ₹5,000. Total income must be under ₹50L. Cannot be used if you have capital gains, foreign assets, or are a company director.
For individuals/HUFs with salary + capital gains (stocks, MFs, property), multiple house properties, foreign assets or income, or directors of companies. No business income.
For individuals/HUFs with business or professional income, not opting for presumptive taxation. For freelancers with income above ₹50L or those maintaining full books of accounts.
For those opting for presumptive taxation under Section 44AD (business turnover up to ₹2Cr) or 44ADA (professional receipts up to ₹75L from FY 2024-25). Simplest option for most freelancers.
⚠️ Filing the wrong ITR form = defective return notice from IT Department. Always verify before filing.
💡 Which Budget applies? FY 2025-26 returns are filed under Budget 2025 (Feb 2025) rules — new regime slabs with ₹0 tax up to ₹12L, standard deduction ₹75,000. FY 2026-27 (next year's returns) will follow Budget 2026 (Feb 2026) — same slabs, no major changes announced.
Login to incometax.gov.in → e-File → Income Tax Returns → View Form 26AS. This shows all TDS deducted on your behalf. Always match with your Form 16 before filing.
💡 If 26AS and Form 16 mismatch, contact HR immediately. Filing with mismatch triggers IT notices.
Section 80C allows a maximum of ₹1,50,000 deduction from taxable income. At 30% slab, this saves ₹46,800 in tax (including 4% cess). Only in Old Regime.
💡 Most salaried employees already use part of ₹1.5L via EPF. Check your payslip — EPF counts toward your 80C limit.
💡 Section 54 exemption: LTCG on property sale is exempt if reinvested in a new residential property within 2 years (or constructed within 3 years). Capital loss set-off rule: From FY 2026-27, a long-term capital loss can be adjusted only once against gains in the same year — repeated carry-forward set-off against the same loss is no longer permitted. This rule applies from next year's return (FY 2026-27 / AY 2027-28).
All gains from debt MFs purchased after April 1, 2023 are taxed at your slab rate, regardless of holding period. The LTCG indexation benefit has been removed.
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Penalty for non-payment or underpayment: 1% per month interest under Sections 234B (no advance tax paid) and 234C (installments short). Pay via Challan 280 on the IT portal.
💡 For salaried employees with only salary income, advance tax is usually not needed — your employer's TDS covers it. It becomes relevant when you have significant capital gains, rental income, or freelance income not covered by TDS.
If you're a professional freelancer (IT, design, writing, consulting, doctor, CA, lawyer) with gross receipts ≤ ₹75L, you can opt for Section 44ADA. You declare 50% of gross as profit, pay tax on that — no books, no expense tracking, no auditor needed.
💡 Example: ₹18L gross receipts → ₹9L taxable income. Tax at new regime: ~₹72,500. Effective rate on gross receipts: just 4%. This is legally one of the best tax structures in India.
Indian companies paying you deduct 10% TDS under Section 194J. This is advance tax — you get credit for it when filing ITR. Foreign clients: no TDS, so you must pay advance tax quarterly.