Quick summary
A complete guide to income tax filing in India for 2026. Applicable regimes, ITR form selection, deductions available, deadlines, and when you need a tax professional.
The two tax regimes: old vs. new
Since FY 2020–21, Indian taxpayers can choose between two income tax regimes at the time of filing. The old regime allows you to claim deductions under Section 80C (up to ₹1.5 lakh), 80D (health insurance premiums), HRA, LTA, home loan interest, and dozens of other provisions. The new regime offers lower slab rates but eliminates most deductions.
For FY 2025–26, the new regime is the default. If you want to use the old regime, you must explicitly opt for it when filing your return. Salaried employees can switch between regimes every year. Business owners who have claimed the new regime must stick with it (with limited exceptions). The right choice depends entirely on your income level, investments, and deduction profile. There is no universal answer.
- New regime slabs (FY 2025–26): ₹0–3 lakh (nil), ₹3–7 lakh (5%), ₹7–10 lakh (10%), ₹10–12 lakh (15%), ₹12–15 lakh (20%), above ₹15 lakh (30%)
- Old regime standard deduction: ₹75,000 for salaried individuals
- Section 80C limit: ₹1.5 lakh (PPF, ELSS, EPF, life insurance, principal repayment)
- Section 80D: ₹25,000 for self and family; ₹50,000 for senior citizen parents
- Home loan interest deduction (Section 24b): Up to ₹2 lakh per year under old regime
- New regime rebate: Tax fully rebated up to ₹7 lakh income (meaning zero tax payable)
Which ITR form do you need to file?
The Income Tax Department requires taxpayers to use a specific form depending on their income sources and taxpayer category. Using the wrong form can result in a defective return notice.
- ITR-1 (Sahaj): Salaried individuals with income up to ₹50 lakh from salary, one house property, and other sources. No business or capital gains income.
- ITR-2: Individuals and HUFs with income from more than one house property, capital gains, or foreign income. But no business income.
- ITR-3: Individuals and HUFs with income from a proprietary business or profession (doctors, consultants, freelancers).
- ITR-4 (Sugam): Individuals, HUFs, and firms eligible for presumptive taxation under Sections 44AD, 44ADA, or 44AE.
- ITR-5: Firms, LLPs, AOPs, BOIs.
- ITR-6: Companies other than those claiming exemption under Section 11.
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Get quotes from tax consultants near youKey deadlines for FY 2025–26 (AY 2026–27)
Missing ITR filing deadlines results in late filing fees, interest on outstanding tax, and potentially losing the ability to carry forward certain losses. Mark these dates.
- 31 July 2026: Due date for ITR filing for salaried individuals and most non-audit cases
- 31 October 2026: Due date for taxpayers requiring audit (turnover above ₹1 crore for business, ₹50 lakh for professions. With exceptions under presumptive taxation)
- 15 March 2026: Final advance tax instalment (90% of total advance tax liability must be paid by this date)
- 7th of each month: TDS deposit deadline for deductors
- 31 December 2026: Last date for filing a belated or revised return for AY 2026–27
- Late filing fee: ₹5,000 if filed after 31 July (₹1,000 if total income is below ₹5 lakh)
Deductions salaried employees commonly miss
The most valuable tax-saving provisions are not always the obvious ones. Beyond Section 80C, salaried employees frequently overlook deductions that reduce their tax liability significantly.
- Section 80D: Health insurance premiums paid for self, spouse, children, and parents. Up to ₹75,000 total if parents are senior citizens.
- Section 80E: Interest on education loan. No upper limit, available for eight years from the year repayment begins.
- Section 80EEA: Additional ₹1.5 lakh interest deduction on affordable housing loans (for first-time buyers, loans sanctioned before 31 March 2022).
- Section 80G: Donations to approved charities. 50% or 100% deduction depending on the organisation.
- Section 80TTA: Up to ₹10,000 deduction on savings bank interest for non-senior citizens.
- LTA (Leave Travel Allowance): Tax-exempt twice in a four-year block for travel within India.
- NPS contribution under Section 80CCD(1B): Additional ₹50,000 beyond the 80C limit.
Self-employed and freelancer tax: what you need to know
Freelancers, consultants, and sole proprietors in India have more complex tax situations than salaried employees. Income from consulting, freelancing, or professional services is taxed as 'Income from Business or Profession'. Requiring you to maintain books of accounts (if turnover exceeds ₹25 lakh) and file ITR-3 or ITR-4.
The presumptive taxation scheme under Section 44ADA is available to professionals (doctors, lawyers, architects, engineers, accountants, consultants) with gross receipts up to ₹75 lakh. Under 44ADA, you pay tax on 50% of your gross receipts without maintaining detailed accounts. This simplifies compliance significantly but may not be optimal if your actual expenses exceed 50% of receipts.
Freelancers who receive payments from clients abroad must also be aware of GST implications (export of services is zero-rated) and FEMA compliance for receiving foreign currency.
- Maintain invoices for all professional income received
- Deductible expenses: internet, laptop, software, professional development, office rent, travel for work
- Advance tax is mandatory if total tax liability exceeds ₹10,000. Pay in four instalments
- GST registration required if annual receipts exceed ₹20 lakh (₹10 lakh in special category states)
- For foreign clients: issue invoices in USD/foreign currency, report as export of services under GST
When you need a tax professional
Filing ITR-1 as a straightforward salaried employee with standard deductions can be done yourself via the Income Tax e-filing portal. But as your financial situation becomes more complex, errors become more costly. And the cost of a good tax consultant is almost always lower than the cost of a notice.
Situations that genuinely require a professional include: capital gains from equity, mutual funds, or property sales; income from more than one source; foreign income or foreign assets; running a business or profession; receiving an income tax notice or scrutiny; having TDS mismatches between Form 26AS and your return; or planning a major financial event (property purchase, business sale) that has tax implications.
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