Salaried individuals, freelancers and small-business owners filing for FY 2025–26 (AY 2026–27).
Which ITR form to use, the deadlines, late-filing penalties, and the right order to file in.
Filing under the wrong regime or the wrong form — both delay refunds and invite notices.
You have capital gains, foreign income or business income, or you have already received a notice.
Filing your income tax return, or ITR, feels scary the first time. It really is not. Do it in the right order, with the right form, and the whole thing takes about 30 minutes — and it makes sure you get back any refund the government owes you.
So what is an ITR? It is simply a form you fill online that tells the government how much you earned during the year and how much tax you have already paid. This guide is for FY 2025–26 — the money you earned between 1 April 2025 and 31 March 2026. The tax department calls this period "assessment year 2026–27". Same thing, just a different name.
We will keep it simple: which form to use, the last date, what late filing costs, what to keep ready, and the exact steps to follow. If your case is a bit trickier — you sold shares or a flat, have income from abroad, or run a business — our income tax team in Bengaluru can just file it for you.
If you are salaried, your ITR for FY 2025–26 is due by 31 July 2026. File it free on the income tax portal using ITR-1 (most salaried people) or ITR-2 (if you also sold investments or own more than one house). Pick your tax regime, fill the form, and then e-verify within 30 days — the return does not count until you do. File late and you pay a fee of up to ₹5,000.
Where should you start?
Which ITR form should you use?
There are four common ITR forms, and picking the wrong one is the mistake we see most. Choose wrong and your return gets marked "defective", which means your refund stays stuck. The trick is simple: the right form depends on where your money comes from, not on your job title. Here is the quick map:
| Form | Use it if your income is from | Income ceiling |
|---|---|---|
| ITR-1 (Sahaj) | Salary, one house property, other sources (interest); small LTCG up to ₹1.25 lakh | ≤ ₹50 lakh |
| ITR-2 | Capital gains, two or more houses, foreign income or assets — but no business income | No limit |
| ITR-3 | Business or professional income (and anything in ITR-2) | No limit |
| ITR-4 (Sugam) | Presumptive income under Sections 44AD, 44ADA or 44AE | ≤ ₹50 lakh |
Here is an easy way to find your form:
- Salaried with one job and maybe a little bank interest? ITR-1 is almost certainly yours. Take Anjali, a software engineer in Bengaluru. She has one Form 16 (the salary-and-tax slip her company gives her) and ₹12,000 of FD interest. She files ITR-1.
- Sold shares, mutual funds or property, or own a second house? Then you move up to ITR-2.
- Freelancer or consultant who wants to declare income the simple way? Use ITR-4. Our Section 44ADA guide shows when this saves you the most tax.
Deadlines and what late filing costs
If you are salaried, your last date is 31 July 2026. If you run a business or freelance (and do not need an audit), you get one extra month — 31 August 2026. Miss your date and you can still file a "belated" (late) return, but it costs you money and you lose a few benefits. Here are all the dates in one place:
| Return type | Due date |
|---|---|
| Salaried & other ITR-1 / ITR-2 filers | 31 Jul 2026 |
| Business or professional incomeNon-audit — ITR-3 & ITR-4 | 31 Aug 2026 |
| Taxpayers requiring a tax auditCompanies, audited proprietors & firms | 31 Oct 2026 |
| Transfer-pricing casesForm 3CEB applicable | 30 Nov 2026 |
| Belated & revised returns | 31 Dec 2026 |
| Updated return (ITR-U)Within 48 months of the AY's end | 31 Mar 2031 |
File late and you pay a fixed late fee, plus 1% interest a month on any tax you still owe. The fee is smaller if you earn less:
| Situation | Charge |
|---|---|
| Total income above ₹5 lakh | ₹5,000 |
| Total income up to ₹5 lakh | ₹1,000 |
| Tax still unpaidInterest under Section 234A | 1% per month |
There is a hidden cost too. If you made a loss — say on shares or in your business — filing late means you cannot carry that loss forward to lower next year's tax. And if a refund is due to you, filing early simply gets your money back sooner. So there is little reason to wait.
Choose your regime before you file
India has two tax systems, and you get to pick one:
- The new regime has lower tax rates but almost no deductions. It is now the default — if you do nothing, you are in it.
- The old regime has higher rates but lets you claim deductions — for a home loan, rent (HRA), investments under Section 80C, and more.
So which one is better? It depends on how much you can deduct. For example, if you pay rent and have a home loan, the old regime often wins because those deductions are large. If you have very few deductions, the new regime usually wins. Our new vs old regime guide works it out with real numbers, and our 80C and 80D guide shows the deductions that tip the balance.
Rule of thumb: if your taxable income lands at or below ₹12 lakh, the new regime is hard to beat — the Section 87A rebate takes the tax to nil. Above that, the old regime only wins when your total deductions are deep.
Not sure which way to go? Our regime calculator compares both for your exact salary and deductions in seconds — run it before you lock the form.
Documents to gather before you start
Most filing trouble happens when you start, then stop halfway to hunt for some number. So keep these ready before you begin — most take just a few minutes to download:
- PAN and Aadhaar — and make sure they are linked, or your return will not go through.
- Form 16 — the salary-and-tax statement your employer gives you (one from each employer you worked for).
- AIS and Form 26AS — two summaries on the tax portal that show the income and tax the government already has on record for you. Your return must match these.
- Bank interest details — from savings accounts and fixed deposits.
- Capital gains statement — from your broker or mutual-fund app, if you sold any investments.
- Proof of your deductions — 80C investments (PPF, ELSS, insurance), health insurance premiums, home-loan interest.
How to file, step by step
Got your documents ready? The actual filing is quick. Just follow this order on the income tax portal:
- Match your numbers first. Check that your Form 16 agrees with the AIS and Form 26AS on the portal. If they do not match, fix it before filing — mismatches are the number one reason people get a tax notice.
- Confirm your regime and pick the right ITR form from the table above.
- Log in and let it pre-fill. The portal auto-fills your salary, TDS and interest data. Do not trust it blindly — check each line.
- Add what is missing — deductions, capital gains, any other income — and then validate the return.
- Pay any balance tax that is due, or confirm your refund and bank account.
- E-verify within 30 days. An unverified return counts as never filed — this is the step people forget most.
Common mistakes that delay your refund
These are the slip-ups we see most often — each one is easy to avoid:
- Using the wrong form — the return gets marked defective and your refund stalls.
- Forgetting to e-verify — people file, then skip the final step, so the return never counts.
- Numbers that do not match the AIS — a missed FD interest or a sold mutual fund quietly triggers a notice.
- Choosing the regime by accident — staying on the default new regime when the old one would have saved you more.
- Waiting till the last week — the portal slows down and small errors creep in.
Frequently asked questions
What is the last date to file ITR for FY 2025–26?
For salaried individuals and others filing ITR-1 or ITR-2, the due date is 31 July 2026. If you report business or professional income but do not need an audit (ITR-3 or ITR-4), you have until 31 August 2026. Either way, a belated return can be filed up to 31 December 2026 with a late fee under Section 234F.
Which ITR form should a salaried person use?
Most salaried people with income up to ₹50 lakh from salary, one house and interest use ITR-1 (Sahaj). If you also have capital gains, more than one house, or foreign income, you move to ITR-2.
Do I have to file if my income is below the exemption limit?
Often yes. Filing is mandatory if you hold foreign assets, have deposited large sums in bank accounts, spent above set limits on travel or electricity, or want to claim a refund of TDS already deducted. When in doubt, file — it is also your cleanest income proof for loans and visas.
What happens if I file under the wrong regime?
You may pay more tax than you needed to. Salaried taxpayers can switch regimes each year at filing, so a wrong choice can be corrected by filing under the right one — but only up to the relevant deadline. Business owners have far less flexibility, which is why the choice matters more for them.
How do I verify my return after filing?
E-verify within 30 days using an Aadhaar OTP, net banking, or a pre-validated bank account. Until you verify, the return is not considered filed and any refund stays on hold.
Want a second pair of eyes before you submit? Our team reviews your figures, confirms the right form and regime, and files the return for you — so your refund is not held up and a notice never lands.
ITR filing checklist — FY 2025–26
Every document and step in one printable sheet, so nothing gets missed before the deadline.
File your ITR with a Bengaluru tax team
We compare both regimes against your actual income, pick the right form, file your return and handle any follow-up — for individuals and businesses across Karnataka.