📊 ITR Saathi

ITR Filing Guide — FY 2025-26 (AY 2026-27)

🚨 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.

You're losing ₹2.3L in tax without knowing — check your deductions now
🚨 ITR 2025-26 Filing is OPEN now. Most salaried Indians overpay ₹15,000–₹80,000 in tax by missing deductions. Don't be one of them.
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ITR Forms — Complete Guide FY 2025-26 (AY 2026-27)

ITR-1 (Sahaj) — Simplest

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.

ITR-2 — For Capital Gains & Multiple Properties

For individuals/HUFs with salary + capital gains (stocks, MFs, property), multiple house properties, foreign assets or income, or directors of companies. No business income.

ITR-3 — For 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.

ITR-4 (Sugam) — For Freelancers & Small Business

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.

📅 Key Dates — FY 2025-26 (AY 2026-27) — Current Filing Season

🟢 Filing Open Now — April 1, 2026 onwards
  • July 31, 2026 — Regular deadline for individuals & salaried (ITR-1, ITR-2) — no penalty
  • October 31, 2026 — Deadline for businesses, audit cases (ITR-3, ITR-4 with tax audit)
  • December 31, 2026 — Belated return (₹5,000 penalty; ₹1,000 if income ≤ ₹5L)
  • March 31, 2028 — Updated return ITR-U (additional 25–50% tax on outstanding liability)

📅 Key Dates — FY 2026-27 (AY 2027-28) — Next Year's Filing

  • April 1, 2027 onwards — Filing window opens
  • July 31, 2027 — Regular deadline for individuals (ITR-1, ITR-2)
  • October 31, 2027 — Deadline for businesses & audit cases (ITR-3/4)
  • December 31, 2027 — Belated return (penalty applies)

💡 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.

ℹ️ Enter data from your Form 16 (from employer) and Form 26AS (from IT portal) to estimate your refund.

How to check Form 26AS

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.

⚠️ 80C deductions are only available in Old Tax Regime. No benefit in New Regime.
Total Invested
₹1,26,600
Deduction Allowed
₹1,26,600
₹0Limit: ₹1,50,000

Complete 80C Deductions List 2026-27

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.

Best 80C instruments by flexibility

  • ELSS: 3-year lock-in (shortest). Market returns (12–15% historical). Best for wealth creation.
  • PPF: 15-year, 7.1%, fully tax-free. Sovereign guarantee. Best for safety.
  • 5-Year FD: 6.5–7.5%. Safe. Interest taxable at maturity.
  • NPS 80CCD(1B): Extra ₹50,000 deduction beyond 80C limit. Best if you've maxed 80C.

💡 Most salaried employees already use part of ₹1.5L via EPF. Check your payslip — EPF counts toward your 80C limit.

Other deductions beyond 80C

  • 80D: Health insurance — ₹25,000 self/family; ₹50,000 for senior citizen parents
  • 80E: Education loan interest — no limit, 8 years
  • 80CCD(1B): NPS — additional ₹50,000 over 80C cap
  • 80TTA: Savings account interest — up to ₹10,000 exempt
  • 80G: Donations to approved charities — 50% or 100%

Capital Gains Tax — FY 2025-26 (Budget 2024 Rates Apply — Budget 2026 Confirmed No Changes)

Equity Shares & Equity MF

  • STCG (held <1 year): 20% (up from 15% in Budget 2024)
  • LTCG (held ≥1 year): 12.5% on gains above ₹1.25L (up from 10% above ₹1L)

Immovable Property

  • STCG (held <2 years): Added to income, taxed at your slab
  • LTCG (held ≥2 years): 12.5% without indexation — OR — 20% with indexation for property purchased before July 23, 2024

💡 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).

Debt Mutual Funds (post April 2023)

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.

ℹ️ Advance tax is required if total tax liability (after TDS) exceeds ₹10,000. Mainly applies to freelancers, business owners, and those with capital gains or rental income.

Advance Tax — Due Dates & Penalties

  • June 15: 15% of estimated annual tax
  • September 15: 45% cumulative
  • December 15: 75% cumulative
  • March 15: 100% cumulative

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.

Section 44ADA lets professionals declare 50% of gross receipts as profit — no expense tracking needed. Available if gross receipts ≤ ₹75L.

Freelancer Tax Guide India — FY 2025-26

Section 44ADA — Biggest Tax Benefit for Freelancers

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.

GST for Freelancers

  • GST registration mandatory if turnover > ₹20L (₹10L in special category states)
  • Services to foreign clients = export of services = 0% GST (but register to claim input credits)
  • GST rate on professional services: 18%
  • ITR-4 filing deadline for FY 2025-26: July 31, 2026 (same as individuals — the Aug 31 extension applies from FY 2026-27 onwards)

TDS on Freelance Payments

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.

Expenses You Can Deduct (if not using 44ADA)

  • Internet and phone (proportionate business use)
  • Laptop and equipment (depreciation)
  • Home office (proportionate rent/electricity)
  • Professional software subscriptions
  • Courses and certifications
  • Travel for work
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