Update, 28 September 2026: CBDT has extended two AY 2026-27 dates for taxpayers whose accounts are audited: the tax audit report to 21 October 2026 and the income tax return to 21 November 2026 (announced 28 September 2026). Other dates are unchanged unless separately notified.
The regime choice comes before everything else
The new tax regime under Section 115BAC has been the default since AY 2024-25, and for AY 2026-27 it offers a ₹4 lakh basic exemption, a flatter set of slabs, a ₹75,000 standard deduction for salaried taxpayers, and a Section 87A rebate that brings tax to nil for resident individuals with taxable income up to ₹12 lakh (₹12.75 lakh for salaried taxpayers, after the standard deduction). What it doesn't offer is most of the Chapter VI-A deductions — 80C investments, 80D health insurance, HRA and several others — that the old regime still allows against its lower basic exemption and higher slab rates.
There's no universal answer to which regime is better — it depends entirely on income level and how much you'd actually claim under the old regime's deductions. A taxpayer with significant home loan interest, insurance premiums and 80C investments may still come out ahead under the old regime despite its steeper rates; someone with a simple income structure and few eligible deductions is usually better off under the new one. The choice matters especially because, once the original due date passes, the old regime can no longer be elected — a belated return can only be filed under the new regime.
Which ITR form applies
| Form | Who it's for |
|---|---|
| ITR-1 (Sahaj) | Resident individuals with salary, one house property, and other income (interest, etc.) up to ₹50 lakh total — no capital gains, no business income |
| ITR-2 | Individuals and HUFs with capital gains, more than one house property, or income above ITR-1's limits, but no business or professional income |
| ITR-3 | Individuals and HUFs with income from business or profession, not eligible for ITR-1, 2 or 4 |
| ITR-4 (Sugam) | Individuals, HUFs and firms (other than LLPs) with presumptive business or professional income under Section 44AD, 44ADA or 44AE, within the eligible turnover limits |
Capital gains, however large, don't create business income and don't move you into ITR-3 or ITR-4 by themselves — this is one of the more common points of confusion when selecting a form.
Documents required
- Form 16 from the employer (for salaried individuals), and Form 16A for any TDS deducted on other income.
- Bank statements for all accounts held during the year.
- Form 26AS and the Annual Information Statement (AIS), for reconciling TDS and reported financial transactions.
- Capital gains statements, from brokers or mutual fund houses, for any securities transactions during the year.
- Home loan interest certificate, and rent receipts if claiming HRA under the old regime.
- Details of other income — interest, dividends, rental income, or foreign income if applicable.
- Investment proofs supporting deductions claimed, if opting for the old regime.
- Aadhaar and PAN, and bank account details for refund credit.
The return filing process, step by step
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Reconciling Form 26AS and AIS
TDS credits and reported financial transactions are checked against your own records before anything is computed — a mismatch here, left unresolved, is one of the most common triggers for a later notice.
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Regime comparison
Tax liability is computed under both regimes using your actual income and eligible deductions, so the choice is based on your specific numbers rather than a general rule of thumb.
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Form selection
The correct ITR form is confirmed based on your income sources, not assumed from habit or from what was filed last year, since your income mix can change the form required.
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Computation and review
Income, deductions, and tax liability (or refund) are computed and reviewed against supporting documents before filing.
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Filing and verification
The return is filed electronically and verified — either through Aadhaar OTP, net banking, or by sending a signed physical acknowledgement — since an unverified return is treated as not filed at all.
Due dates and penalties
| Situation | Date / consequence |
|---|---|
| ITR-1/ITR-2 (no business or professional income) | Due 31 July 2026 |
| ITR-3/ITR-4, no tax audit required | Due 31 August 2026 |
| Accounts liable to tax audit under Section 44AB | Due 21 November 2026 (extended from 31 October 2026) |
| Belated return | Can be filed until 31 December 2026, with a late fee and interest, and under the new regime only |
| Revised return | Can be filed until 31 March 2027 to correct an error in a return already filed — a belated return can be revised within the same time limit |
| Late filing fee (Section 234F) | ₹1,000 if total income doesn't exceed ₹5 lakh; up to ₹5,000 otherwise |
| Interest on tax due, filed late | 1% per month under Section 234A, in addition to the late filing fee |
Practical notes from our engagements
- Regime chosen out of habit, not calculation. Continuing with whichever regime was used last year, without recomputing, is a common way to overpay — especially as slabs and the standard deduction under the new regime have both moved in recent years.
- The staggered deadline confused with a universal one. This is the first year the deadline genuinely depends on income type. A business owner assuming the salaried employee's 31 July deadline applies to them, or vice versa, is the single most common date-related error we're seeing this season.
- AIS entries left unreconciled. The Annual Information Statement increasingly captures data the department already has from banks, registrars and other sources — an entry that doesn't match your return is exactly the kind of gap that draws a notice.
- Return filed but never verified. An unverified return is treated in law as though it was never filed at all — the filing isn't complete until verification is done, typically the same day.
- Capital gains assumed to require ITR-3. Capital gains alone, without business income, keep you on ITR-2 — moving to ITR-3 unnecessarily complicates the filing for no benefit.
How we handle individual return filing
We reconcile Form 26AS and AIS against your own records before computing anything, and run the calculation under both regimes so the choice reflects your actual numbers for the year rather than a general assumption. The correct form is confirmed from your specific income sources, and we don't consider the filing complete until the return is verified, not merely submitted.
Related services
Frequently asked questions
Which regime should I choose — old or new?
It depends on your income level and how much you'd actually claim under the old regime's deductions. We compute your tax liability under both before recommending one — there's no single right answer for everyone.
Can I switch regimes after filing?
For salaried individuals with no business income, the regime can be changed each year at the time of filing. Once you have business or professional income, switching back to the new regime after opting for the old one is restricted.
What's the deadline for my specific ITR form this year?
31 July 2026 for ITR-1/ITR-2, 31 August 2026 for ITR-3/ITR-4 without a tax audit requirement, and 21 November 2026 (extended from 31 October 2026) where a tax audit applies. This is the first year the non-audit business deadline differs from the salaried deadline.
What happens if I miss my due date?
You can still file a belated return until 31 December 2026, subject to a late fee under Section 234F and interest under Section 234A — but only under the new regime, and with some loss of carry-forward benefits for certain losses.
Can I revise a return after filing it?
Yes, a return filed on time can be revised until 31 March 2027 if you find an error. A belated return can be revised too, within the same time limit. After 31 December 2026 a fee of ₹1,000 (income up to ₹5 lakh) or ₹5,000 applies.
Do I need to file a return if my income is below the basic exemption limit?
Filing becomes compulsory once income exceeds the basic exemption limit before deductions, and in certain other specified circumstances even below it — such as high-value transactions during the year. It's also often worth filing even when not compulsory, to claim a refund or maintain a filing history.
What is Form 26AS and AIS, and why do they matter?
Form 26AS shows tax deducted or collected on your behalf; the Annual Information Statement additionally captures other financial transactions reported to the department. Reconciling your return against both reduces the chance of a mismatch-related notice.
I have capital gains from mutual funds. Which ITR form do I use?
Generally ITR-2, provided you don't also have business or professional income — capital gains alone don't require ITR-3.
Is e-verification of my return actually necessary?
Yes — a return that isn't verified within the prescribed time is treated as not having been filed at all, regardless of whether it was correctly prepared and submitted.
Can I claim HRA under the new tax regime?
No — HRA exemption is one of the deductions not available under the new regime; it remains available only if you opt for the old regime.
What is the Section 87A rebate, and who gets it?
It's a rebate that can reduce tax to nil for resident individuals under the new regime with taxable income up to ₹12 lakh (₹12.75 lakh for salaried taxpayers, after the standard deduction) — non-residents and certain other categories aren't eligible.
Does filing an ITR-U let me claim a refund I missed?
No — an updated return under Section 139(8A) is meant for disclosing additional income and paying additional tax, not for claiming a fresh refund or reducing previously reported income.