ITR Filing 2026: The Complete Guide for FY 2025-26 (AY 2026-27)

Introduction

Tax season is back, and 2026 brings real changes: filing deadlines that now depend on your form, a rebate that makes income up to ₹12 lakh tax-free, and a new Income Tax Act on the horizon. This guide explains it all in plain language — who needs to file, which form and regime to pick, and how to file your return for FY 2025-26 (AY 2026-27), step by step.

What is an Income Tax Return, and Who Has to File One?

An Income Tax Return is the form you submit to the Income Tax Department declaring how much you earned in the year, what deductions you are claiming, how much tax was already paid on your behalf (through TDS, advance tax, or self-assessment tax), and whether you still owe tax or are owed a refund.

You are generally required to file if any of these apply:

• Your gross total income (before deductions) crosses the basic exemption limit, ₹4 lakh under the new regime, or ₹2.5 lakh under the old regime (₹3 lakh for those aged 60–80, ₹5 lakh for those above 80).
• You want a refund of excess TDS deducted (for example, by your bank or employer), even if your income is below the limit, you must file to get the money back.
• You meet certain high-value transaction triggers, such as depositing large sums in bank accounts, spending heavily on foreign travel, paying high electricity bills, or holding foreign assets or income.
• You have capital gains, business or professional income, or income from more than one source.

Even when filing is not strictly mandatory, doing it has real upside: it builds a documented financial history that helps with loan and visa applications, lets you carry forward losses to offset future gains, and keeps you on the right side of the law.

The Two Tax Regimes: New vs Old

Before anything else, you choose between two ways of being taxed. This single choice usually has a bigger effect on your taxes than any other decision you make while filing, so it is worth understanding properly.

The new tax regime is now the default. If you do nothing, you are taxed under it. It offers lower slab rates but strips away most popular deductions and exemptions, no Section 80C, no 80D, no HRA, no home-loan interest under Section 24(b). The old regime keeps all those deductions but charges higher rates.

New Tax Regime Slabs (FY 2025-26)