Income Tax Returns - Individuals, HUFs & Proprietors

What does filing a personal return involve?

An income-tax return reports your income for the year — salary, business or professional income, rent, interest, dividends, and capital gains — claims deductions where you're entitled to them, and settles the tax against what's already been deducted or paid.

For FY 2025-26, you choose between the new tax regime, which is the default and has lower rates but few deductions, and the old regime, which has higher rates but allows deductions like Section 80C and home loan interest. The Income-tax Act, 2025 applies from tax year 2026-27.

The key terms

A few terms decide how your return looks:

New tax regime

The default regime. For FY 2025-26, income up to ₹12 lakh is effectively tax-free after the rebate, with a ₹75,000 standard deduction for salaried people.

Old tax regime

Higher slab rates, but deductions like 80C, 80D, HRA, and home loan interest are available. Salaried people can choose it each year.

ITR forms

ITR-1 for simpler salaried cases up to ₹50 lakh, ITR-2 for capital gains or foreign income, ITR-3 for business or professional income, and ITR-4 for presumptive income.

Presumptive taxation

Small businesses and professionals can declare income at a set percentage of turnover or receipts, without detailed books, within limits.

AIS and Form 26AS

Statements of income and tax credits the department already knows about. Your return should reconcile with them.

Due dates

Generally 31 July for individuals not needing a tax audit, and 31 October if a tax audit applies. The department sometimes extends these.

Belated and updated returns

A missed return can be filed late by 31 December, with a fee. An updated return can be filed within 48 months, with additional tax.

Why it matters

Filing correctly avoids problems that are hard to fix later:

Mandatory above the limits

You must file if your income exceeds the basic exemption limit, and in some other cases, like foreign assets or high spending.

Regime choice

Picking the right regime each year can save a meaningful amount of tax.

AIS mismatches

Income missing from your return but shown in your AIS is a common trigger for notices.

Refunds

Excess TDS is only refunded after you file.

Losses

Capital and business losses can only be carried forward if you file on time.

Loans and visas

Banks and embassies ask for filed returns as proof of income.

Foreign assets

Residents with foreign bank accounts, shares, or ESOPs must report them, with heavy penalties for not doing so.

Who is this for?

Non-resident Indians have different rules on residence and taxable income — see our NRI Taxation & Return Filing service.

New regime vs. old regime (FY 2025-26)

The main differences:

What we'll need from you

Form 16

From your employer, showing salary and TDS.

AIS and Form 26AS

We can download these with your consent.

Investment proofs

For the old regime: 80C, 80D, home loan, and rent details.

Capital gains statements

From brokers and mutual fund registrars, and property sale and purchase documents.

Business records

For proprietors and professionals, books or turnover details.

Bank details

A pre-validated bank account for refunds.

Fees depend on the sources of income — a salary-only return is simpler than one with business income, capital gains, or foreign assets.

How we file your return

Filing usually takes a few steps:

1. 1

   Collect documents

   Form 16, AIS, Form 26AS, and details of other income and investments.

2. 2

   Reconcile with AIS

   Every income in your AIS is matched and explained.

3. 3

   Compare regimes

   Tax is computed under both regimes to find the lower one.

4. 4

   Choose the form

   The correct ITR form is chosen based on your income sources.

5. 5

   Pay any balance

   Self-assessment tax, if any, is paid before filing.

6. 6

   File and verify

   The return is filed and e-verified, and processing is tracked.

After you file

A few things follow:

E-verify within the time allowed

An unverified return isn't treated as filed. E-verify promptly with Aadhaar OTP or net banking.

Processing

You'll receive an intimation showing any refund or demand.

Refund

Refunds go to your pre-validated bank account.

Respond to notices

Answer any notice or proposed adjustment within its deadline.

Revise if needed

A revised return can fix mistakes within the allowed time.

Plan advance tax

If you have income beyond salary, plan advance tax for the current year.

Benefits and responsibilities