Income Tax Return Filing — For Every Type of Assessee
End-to-end ITR filing for individuals, HUFs, partnership firms, LLPs, companies, trusts and other entities — under the current Income Tax Act, 2025. Both regimes. All seven forms. Full compliance.
Overview
What is an Income Tax Return?
An Income Tax Return (ITR) is a prescribed form through which every person — individual, company, trust or other entity — declares total income, deductions and tax liability to the Income Tax Department for a given Tax Year.
Filing is governed by Section 263 of the Income Tax Act, 2025 (replaces Sec 139, ITA 1961), which consolidates original, belated, revised and updated return provisions into a single unified section. The Income Tax Rules, 2026 prescribe the forms and procedures.
Understanding "Tax Year" under ITA 2025
Section 3, ITA 2025 introduces the Tax Year — a single unified 12-month period (April–March) replacing the dual concepts of "Previous Year" and "Assessment Year" from the ITA 1961. Tax Year 2026–27 (1 April 2026 to 31 March 2027) is the first Tax Year under the new Act.
Transitional note: Income earned in FY 2025–26 is still assessed as AY 2026–27 under ITA 1961. Both Acts operate simultaneously during the transition — new income from 1 April 2026 under ITA 2025; all prior-year proceedings continue under ITA 1961.
New Section 263 (ITA 2025) vs Old Section 139 (ITA 1961):
Sec 263(1) = Original return · Sec 263(4) = Belated return · Sec 263(5) = Revised return · Sec 263(6) = Updated return (ITR-U). Sec 265 (ITA 2025) governs verification (= old Sec 140).
Mandatory Filing
Who Must File — Sec 263(1), ITA 2025
- Any person whose gross total income exceeds the basic exemption limit (₹4 Lakh under new regime · ₹2.5 Lakh/₹3 Lakh/₹5 Lakh under old regime by age)
- All companies and firms (including LLPs) — regardless of profit or loss — mandatory under Sec 263(1)(a)
- Trusts and specified institutions required to file under Chapter XVI of ITA 2025
- Persons depositing ₹1 Crore or more in current accounts or ₹50 Lakh or more in savings accounts
- Persons incurring ₹2 Lakh or more in foreign travel or ₹1 Lakh or more in electricity expenses
- Persons with foreign assets, foreign income, or signing authority in any foreign account
- Persons claiming a refund of excess TDS / TCS / advance tax paid
- Partners of an audited firm or LLP; directors in companies with unlisted equity shares
- Persons with VDA (crypto/digital asset) income — compulsory Schedule VDA in applicable ITR forms
- Businesses / professionals whose gross receipts exceed presumptive taxation thresholds under ITA 2025
Why File?
Benefits of Filing Your ITR
Filing on time under Sec 263(1) of the ITA 2025 protects your finances, builds credit history and keeps you fully compliant — regardless of entity type.
Loan & Credit Access
Banks and NBFCs treat ITRs as primary income proof for home loans, business credit and vehicle loans. Two to three filed returns strengthen your eligibility and interest terms significantly.
Visa Applications
Embassies of the USA, UK, Canada, Schengen zone and Australia require the last 2–3 years' ITRs as proof of financial standing and purpose of travel.
Government-Recognised Proof
The ITR-V acknowledgement (issued after e-verification under Sec 265, ITA 2025) serves as income and address proof for insurance policies, rental agreements and tenders.
Claim TDS Refunds
If TDS, TCS or advance tax deducted exceeds actual liability, filing an ITR under Sec 263(1) is the only mechanism to claim the refund from the IT Department.
Carry Forward Losses
Business losses, capital losses and house property losses can be carried forward for up to 8 Tax Years — but only if the return is filed within the due date under Sec 263(1), ITA 2025.
Avoid Penalties & Interest
Late or non-filing attracts late fees, interest under Sec 423/424/425 of ITA 2025 (old Sec 234A/234B/234C) and, in wilful evasion cases, prosecution under ITA 2025.
ITR Forms
Which ITR Form Applies to You?
Seven return forms are prescribed under the Income Tax Rules, 2026. The form numbers are unchanged from those under ITA 1961, but internal schedules and section references are updated to ITA 2025. Filing the wrong form renders the return defective.
| Form | Applicable To | Income Sources Covered | Cannot Use If |
|---|---|---|---|
| ITR-1 SAHAJ |
Resident Individual | Salary / Pension · One house property · Other Sources (interest, dividend, family pension) · Agricultural income ≤ ₹5,000 | Total income > ₹50 Lakh · Multiple house properties · Capital gains · Foreign assets/income · Business income · Director in company · Unlisted equity held |
| ITR-2 | IndividualHUF | Salary/Pension · Multiple house properties · Capital gains (all types) · Foreign assets/income · Other Sources · Director · Unlisted equity | Business or professional income (use ITR-3 or ITR-4) |
| ITR-3 | IndividualHUF | All heads — including profits from business or profession on actual basis · Capital gains · Foreign assets · All other income | N/A — most comprehensive form for individuals/HUFs with business income |
| ITR-4 SUGAM |
IndividualHUFFirm (excl. LLP) | Salary · One house property · Other Sources · Business/Profession under Presumptive Taxation — Sec 58/59/60 ITA 2025 (old Sec 44ADA/44AD/44AE) | Total income > ₹50 Lakh · Capital gains · Foreign assets · >1 house property · Director or partner in unlisted company |
| ITR-5 | Partnership FirmLLPAOP / BOICo-operative SocietyLocal AuthorityAJP | Business/Profession · Capital Gains · House Property · Other Sources. Now includes mandatory Schedule VDA (virtual digital assets) under ITA 2025 Rules | Individuals, HUFs, companies (different forms). Entities filing under Chapter XVI provisions use ITR-7 |
| ITR-6 | Domestic CompaniesForeign Companies | Business/Profession · Capital Gains · House Property · Other Sources. Mandatory Schedule VDA and expanded Schedule FA (foreign assets) under ITA 2025 Rules | Companies claiming exemption under Chapter III of ITA 2025 (old Sec 11, ITA 1961) — those must use ITR-7 |
| ITR-7 | Charitable TrustsReligious TrustsEducational InstitutionsHospitalsPolitical PartiesResearch Associations | All income heads — entities required to file under Chapter XVI / Sec 263(1)(c) of ITA 2025 (old Sec 139(4A/4B/4C/4D), ITA 1961). Form 112 Audit report (equivalent of Form 10B/10BB) mandatory | All other entity types not governed by the specific provisions of Chapter XVI, ITA 2025 |
Note: ITR-V is the e-filing acknowledgement generated after submission and must be e-verified within 30 days under Sec 265 / ITA 2025 Rules (old Sec 140/Rule 12, ITA 1961) using Aadhaar OTP, net banking or DSC. Form 130 (equivalent of Form 16) will be issued for Tax Year 2026–27 onwards under ITA 2025 Rules, 2026.
Tax Rates
Income Tax Rates — All Assessee Types
Applicable for Tax Year 2026–27 (income from 1 April 2026 to 31 March 2027) under ITA 2025 / Finance Act 2026. All rates are subject to Health & Education Cess at 4% on aggregate tax + surcharge.
New Tax Regime
Lower slab rates. Standard deduction ₹75,000 for salaried. Zero tax up to ₹12 Lakh via rebate u/s 157 ITA 2025 (old Sec 87A). No deductions under Chapter VIA. Surcharge capped at 25%.
Old Tax Regime (Opt-in required)
Higher slabs but full deductions: Sec 123 (80C), Sec 124 (80D), HRA, home loan interest, LTA, and 70+ other provisions under ITA 2025. Best when deductions exceed ~₹3.75 Lakh.
New Regime — Sec 202, ITA 2025 | All Individuals, HUF, AOP*, BOI, AJP (*not co-operative societies)
| Annual Income | Tax Rate |
|---|---|
| Up to ₹4,00,000 | NIL |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Old Regime — Slab Rates (Optional)
| Income Range | Below 60 yrs / NRI | 60–80 yrs (Senior) | Above 80 yrs (Super Senior) |
|---|---|---|---|
| Up to ₹2,50,000 | NIL | NIL | NIL |
| ₹2,50,001 – ₹3,00,000 | 5%* | NIL | NIL |
| ₹3,00,001 – ₹5,00,000 | 5%* | 5%* | NIL |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
| Entity | Base Rate | Surcharge | Cess | Max Effective Rate |
|---|---|---|---|---|
| Partnership Firm (not LLP) | 30% on net profit | 12% if income > ₹1 Crore | 4% | ~34.94% |
| Limited Liability Partnership (LLP) | 30% on net profit | 12% if income > ₹1 Crore | 4% | ~34.94% |
• Remuneration to working partners: deductible up to limits under the ITA 2025 equivalent of Sec 40(b) — for book profit up to ₹6 Lakh: higher of ₹3 Lakh or 90%; above ₹6 Lakh: 60%.
• Interest to partners: deductible up to 12% p.a. on capital contribution.
• No further tax on profit distribution to partners.
• TDS on partner payments (Sec 393, ITA 2025 — old Sec 194T, ITA 1961): 10% on salary, remuneration, bonus, commission or interest paid to partners exceeding ₹20,000 per Tax Year — new TDS compliance item.
• AMT — ITA 2025 equivalent: 18.5% of adjusted total income if actual tax is lower (where profit-linked deductions are claimed). AMT credit carries forward for 15 Tax Years.
• Tax Audit — Sec 63, ITA 2025 (old Sec 44AB): applicable where turnover/receipts exceed prescribed thresholds.
• ITR Form: Firms (non-LLP) & presumptive cases → ITR-4. All others → ITR-5.
Domestic Companies
| Category | Base Rate | Surcharge | Effective (incl. surcharge & cess) |
|---|---|---|---|
| Standard — claiming exemptions (turnover > ₹400 Cr base year) | 30% | 7% (₹1–10Cr) / 12% (>₹10Cr) | ~34.94% |
| Standard — turnover ≤ ₹400 Cr in FY 2020–21 | 25% | 7% (₹1–10Cr) / 12% (>₹10Cr) | ~29.12% |
| Concessional — ITA 2025 equivalent of Sec 115BAA (no exemptions / deductions) | 22% | 10% flat | 25.17% |
| New Manufacturing — ITA 2025 equivalent of Sec 115BAB (set up after 01.10.2019) | 15% | 10% flat | 17.16% |
| Minimum Alternate Tax (MAT) on book profit — where applicable | 15% | As applicable | As computed |
Foreign Companies
| Income Category | Base Rate | Surcharge |
|---|---|---|
| Royalty / FTS under agreement prior to 2004 | 50% | 2% (₹1–10Cr) / 5% (>₹10Cr) |
| Royalty / FTS under agreement post-2004 / Other income | 40% | 2% (₹1–10Cr) / 5% (>₹10Cr) |
Domestic Company
Domestic Company
(Turnover ≤ ₹400Cr)
(Turnover > ₹400Cr)
Standard Slab Rates
| Income Range | Tax Rate |
|---|---|
| Up to ₹10,000 | 10% |
| ₹10,001 – ₹20,000 | 20% |
| Above ₹20,000 | 30% |
Concessional Regime Options — ITA 2025
| Option | Rate | Surcharge | Effective | Key Condition |
|---|---|---|---|---|
| ITA 2025 equivalent of Sec 115BAD — any co-operative society | 22% | 10% flat | 25.17% | No specified exemptions/deductions; irrevocable once opted (Form 10-IFA equivalent) |
| ITA 2025 equivalent of Sec 115BAE — new manufacturing co-op (post 01.04.2023) | 15% | 10% flat | 17.16% | Manufacturing commenced before 31.03.2024; irrevocable |
| Entity | Tax Rate | Notes |
|---|---|---|
| AOP / BOI (not co-operative) — New Regime (Sec 202, ITA 2025) | Same individual slab rates under Sec 202 | Default regime. Rebate u/s 157 (old Sec 87A) not available to non-individual assessees. |
| AOP / BOI — Old Regime — member shares determinate | Individual slab rates applicable to each member's share | Each member's share taxed at applicable slab rate. |
| AOP / BOI — Old Regime — member shares indeterminate / unknown | Maximum Marginal Rate: 30% + surcharge + 4% cess | MMR applies automatically when any member's share is not determinable. |
| Artificial Juridical Person (AJP) | Same as AOP/BOI — slab rates under new or old regime | Switch regime in ITR annually for non-business income; Form 10-IEA equivalent for business income opt-out. ITR-5. |
| Entity | Tax Treatment | Key Compliance |
|---|---|---|
| Charitable/Religious Trust — registered under Chapter XVI, ITA 2025 (old Sec 12A/12AB) | Income applied for charitable purposes: exempt. Accumulation beyond 15%: taxed at applicable rates (30% + surcharge + cess) | Annual audit report (equivalent of Form 10B) by CA. ITR-7. Registration renewal as per ITA 2025 provisions. |
| Charitable/Religious Trust — unregistered | Maximum Marginal Rate: 30% + surcharge + 4% cess | Registration critical for exemption under Chapter XVI, ITA 2025. Unregistered trusts lose full exemption. |
| Educational/Medical Institutions — Schedule II, ITA 2025 (old Sec 10(23C)) | Exempt subject to conditions; income applied exclusively for stated purposes | Audit and ITR-7 mandatory. Non-compliance = loss of exemption and MMR taxation. |
| Local Authority (Municipality, Panchayat etc.) | Flat 30% on total income | Surcharge: 12% if income > ₹1 Crore. AMT at 18.5% where profit-linked deductions claimed. ITR-5. |
| Political Party | Exempt subject to full disclosure conditions under ITA 2025 Schedule II (old Sec 13A) | Accounts audited; all contributions above ₹20,000 disclosed. Non-compliance → MMR. ITR-7. |
Special Taxation
Special Rates on Special Income
Certain income categories are taxed at flat special rates under ITA 2025 — irrespective of the assessee's regime, slab rate or entity type. All rates below are before surcharge and 4% Health & Education Cess.
LTCG — Listed Equity & Equity-Oriented MF
12.5%On listed equity shares, equity MF units and business trust units held >12 months. LTCG up to ₹1.25 Lakh per Tax Year is exempt. No indexation benefit.
Sec. 198 of ITA 2025 (old Sec 112A, ITA 1961)STCG — Listed Equity & Equity-Oriented MF
20%On listed equity shares and equity MF units held ≤12 months where STT has been paid. Applies to all assessee types.
Sec. 196 of ITA 2025 (old Sec 111A, ITA 1961)LTCG — Other Assets (Property, Debt MF, Gold)
12.5%On LTCG from unlisted equity, debt MF, real estate (held >24/36 months), gold and other notified assets. Indexation removed post July 2024 for most assets; grandfathering provisions apply to pre-July 2024 acquisitions. Capital gains charge: Sec 67, ITA 2025 (old Sec 45).
Sec 67, ITA 2025 (old Sec 45/112, ITA 1961)Virtual Digital Assets (Crypto / NFTs)
30%All income from transfer of VDAs (cryptocurrency, NFTs and notified digital assets) — flat 30%, regardless of holding period or regime. No deductions except cost of acquisition. TDS at 1% on transfers above ₹10,000 per transaction — Sec 393, ITA 2025 (old Sec 194S). Mandatory Schedule VDA in applicable ITR forms.
ITA 2025 equivalent of Sec 115BBH (old Sec 115BBH, ITA 1961)Lottery, Gambling & Casual Income
30%Winnings from lotteries, crossword puzzles, card games, horse races and games of chance or skill. TDS at 30% deducted at source — Sec 393, ITA 2025 (old Sec 194B). No deductions permitted.
ITA 2025 equivalent of Sec 115BB (old Sec 115BB, ITA 1961)Undisclosed Income — Search Cases
60%Income detected during search / survey operations taxed at 60% plus 25% surcharge on tax (effective ~78%). No deductions, exemptions or set-off of losses permitted.
ITA 2025 equivalent of Sec 115BBE (old Sec 115BBE, ITA 1961)NRI — Special Investment Income
20%Interest on FCNR deposits, NRE accounts and specified foreign currency bonds; income from notified foreign exchange assets. Tax withheld at source — Sec 393, ITA 2025 (old Sec 195). Beneficial DTAA rates may apply on furnishing Tax Residency Certificate.
ITA 2025 equivalent of Sec 115E/115A (old Sec 115E/115A, ITA 1961)Royalties & FTS — Non-Residents
10–20%Royalties and fees for technical services paid to non-residents: 10–20% depending on agreement date and applicable DTAA. TDS obligations under Sec 393, ITA 2025 (old Sec 195). Lower treaty rates available on furnishing Tax Residency Certificate.
ITA 2025 equivalent of Sec 115A (old Sec 115A, ITA 1961)Surcharge Cap on Capital Gains: The enhanced surcharge of 25%/37% (old regime) is not applicable to STCG and LTCG on listed equity/MF and on dividend income. Maximum surcharge on such income is capped at 15% — significantly reducing effective tax for high-income investors. This cap continues under the ITA 2025 equivalent provisions.
Deadlines
ITR Filing — Staggered Due Dates
Budget 2026 introduced form-specific staggered deadlines under Sec 263(1), ITA 2025. The table below covers AY 2026–27 (income of FY 2025–26 filed under ITA 1961) and the new framework for Tax Year 2026–27 onwards under ITA 2025.
Dual-track filing in 2026: AY 2026–27 returns (FY 2025–26 income) → file under ITA 1961 using old section numbers. Tax Year 2026–27 returns (income from April 2026) → to be filed in 2027 under ITA 2025, new section references and new form versions apply.
Salaried, Pensioners & Investors — No Business Income
31 July 2026Individuals and HUFs earning salary, pension, house property income, capital gains and other sources — no business or professional income. Both regimes. Return governed by Sec 263(1), ITA 2025 for Tax Year 2026–27 onwards (old Sec 139(1), ITA 1961 for AY 2026–27).
Non-Audit Business / Professional Assessees & Their Partners
31 August 2026New deadline introduced in Budget 2026. Business and professional assessees not required to get accounts audited under Sec 63, ITA 2025 (old Sec 44AB, ITA 1961), and partners of such non-audit firms/LLPs. The extra month allows for complete book closure, capital account reconciliation and AIS matching.
Audit Cases — Companies, Firms, LLPs, Trusts & Others
31 October 2026All assessees whose accounts require audit under Sec 63, ITA 2025 (old Sec 44AB), Companies Act or any other applicable law. Includes domestic and foreign companies, audited partnership firms and LLPs, co-operative societies, local authorities and trusts with business income. Tax Audit Report (equivalent of Form 3CA/3CB/3CD under ITA 2025 Rules) must be filed by 30 September 2026 — one month before ITR due date as per Sec 63, ITA 2025.
Transfer Pricing Cases — International & Specified Domestic Transactions
30 November 2026Assessees required to furnish a Transfer Pricing Report under the ITA 2025 equivalent of Sec 92E (ITA 1961). Applies to entities with international transactions or specified domestic transactions above prescribed thresholds. TP Report (equivalent of Form 3CEB) must be filed by 31 October 2026.
Belated Return — If Original Due Date Missed
31 December 2026Filed under Sec 263(4), ITA 2025 (old Sec 139(4), ITA 1961 for AY 2026–27). Attracts late fee under the ITA 2025 equivalent of Sec 234F and interest under Sec 423 (old 234A), Sec 424 (old 234B), Sec 425 (old 234C). Certain losses (business, capital) cannot be carried forward if return is belated.
Revised Return — Correcting Filed Return
31 March 2027Extended from 31 December under Budget 2026. Filed under Sec 263(5), ITA 2025 (old Sec 139(5), ITA 1961). Can be filed if any omission or wrong statement is discovered in the original return — before completion of assessment or 31 March 2027, whichever is earlier. A nominal fee applies if filed after 31 December.
Updated Return (ITR-U) — Voluntary Disclosure
Up to 31 March 2031Filed under Sec 263(6), ITA 2025 (old Sec 139(8A), ITA 1961). Window extended to 48 months (4 years) from end of relevant Assessment Year under Budget 2026. Can be filed even after receiving reassessment notice (within the notice period). Additional tax: 25% of incremental tax if filed within 2 years; 50% if 2–4 years. ITR-U cannot be used to reduce tax liability or claim refund — disclosure only. Disclosed income receives immunity from under-reporting/misreporting penalty.
Late fee — income ≤ ₹5 Lakh
ITA 2025 equivalent of Sec 234F
(old Sec 234F, ITA 1961)
Late fee — income > ₹5 Lakh (on/before 31 Dec)
ITA 2025 equivalent of Sec 234F
Interest on unpaid tax
Sec 423, ITA 2025 (old 234A)
Sec 424 (old 234B) · Sec 425 (old 234C)
Penalty on assessed tax for non-filing or concealment. Prosecution under ITA 2025 (up to 7 years) in serious cases.
Penalty + prosecutionHow We Work
Simple 4-Step Filing Process
From document collection to e-verification under Sec 265, ITA 2025 — fully managed by our CA team with complete transparency.
Share Documents
Send Form 16 (or Form 130 for Tax Year 2026–27), Form 16A, AIS, capital gain statements, investment proofs and entity-specific documents by email or WhatsApp.
Review & Compute
Our CA team reconciles with AIS / TIS, maps income to correct ITA 2025 sections, and computes optimum tax under both regimes for your entity type.
Your Approval
A complete draft computation is shared for your review. No return is filed on the Income Tax portal without your explicit approval.
File & E-Verify
Filed on the portal and e-verified under Sec 265, ITA 2025 (old Sec 140). ITR-V acknowledgement delivered to you immediately.
FAQs
Frequently Asked Questions
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Not sure which ITR form or entity-specific provision applies? Speak with our CA team for a free assessment of your compliance obligations under the Income Tax Act, 2025.
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Accurate, on-time ITR filing under the Income Tax Act, 2025 — for all entity types. Both tax regimes. All seven forms. Full compliance under the new law and Rules.
