Filing an income tax return is an annual obligation for individuals, Hindu Undivided Families (HUFs), firms, and other entities whose income exceeds the prescribed threshold, or who fall within certain categories defined under the Income Tax Act, 1961. For Financial Year 2025-26, corresponding to Assessment Year 2026-27, the Income Tax Department has enabled e-filing utilities and the process is now open for taxpayers. As a Chartered Accountant practicing in Gurgaon, we work with salaried professionals, business owners, and investors across Delhi NCR through every filing season, and this article covers what every taxpayer needs to know this year: who must file, which form applies, the relevant due dates, the documents required, and the consequences of missing the deadline.
Understanding Financial Year and Assessment Year
Before getting into the filing process, it helps to be clear on the terminology used throughout. The Financial Year (FY) is the year in which income is actually earned. The Assessment Year (AY) is the year immediately following the financial year, in which that income is assessed and tax is computed and paid. For income earned between 1st April 2025 and 31st March 2026, the applicable Financial Year is FY 2025-26, and the corresponding Assessment Year is AY 2026-27. The return being filed now, therefore, relates to income earned in this period, and is filed and assessed under the provisions of the Income Tax Act, 1961, since that income falls before the new Income Tax Act, 2025 comes into force on 1st April 2026. Taxpayers need not concern themselves with the new Act’s provisions, including its “Tax Year” terminology, for this year’s filing. That terminology and the renumbered sections will apply only from income earned in FY 2026-27 onward.
Who Is Required to File an Income Tax Return
An income tax return must be filed by any individual whose total income before claiming deductions under sections such as 80C to 80U exceeds the basic exemption limit applicable under the regime chosen. Beyond this general threshold, certain categories of persons are required to file a return regardless of their income level, including those who hold any asset located outside India or have signing authority in any account located outside India, those who have deposited more than a specified threshold in current accounts during the year, those who have incurred specified high-value expenditure such as foreign travel beyond a prescribed limit or electricity bills beyond a prescribed limit, and businesses or professionals whose turnover or gross receipts exceed prescribed limits even if their net taxable income is below the exemption threshold. Companies and firms are required to file returns irrespective of profit or loss. Those seeking to claim a refund of tax deducted at source, or wishing to carry forward losses from business, capital gains, or other heads of income to future years, must also file a return within the original due date, since a belated return does not permit the carry forward of most losses.
This category covers a large share of working professionals in Gurgaon, particularly those employed in IT, consulting, and financial services firms in and around Cyber City and DLF, where ESOPs, foreign assignments, and multiple employers in a single year are common and often trigger filing obligations beyond a simple salary return.
Choosing the Correct ITR Form
Selecting the appropriate form is one of the more consequential decisions in the filing process, since an incorrect form can render the return defective and invite correspondence from the department. For Assessment Year 2026-27, the department has enabled ITR-1, ITR-2, and ITR-4 for online and offline filing, with ITR-3 expected shortly for those with business or professional income falling outside the presumptive scheme.
ITR-1, commonly known as Sahaj, is meant for resident individuals having total income up to Rs 50 lakh, comprising salary or pension income, income from one house property, income from other sources such as interest, and agricultural income up to Rs 5,000. This form cannot be used by an individual who is a director in a company, holds unlisted equity shares, has any income from capital gains barring certain limited categories permitted in recent years, has foreign income or foreign assets, or has income from business or profession.
ITR-2 applies to individuals and HUFs who do not have income from business or profession but whose situation falls outside the scope of ITR-1. This includes taxpayers with capital gains, more than one house property, foreign assets or foreign income, agricultural income exceeding Rs 5,000, or those who are directors in companies or hold unlisted shares. A large share of salaried individuals who trade in equity, mutual funds, or property, or who hold foreign shares such as ESOPs from a foreign parent company, will find themselves filing ITR-2 rather than ITR-1.
ITR-4, known as Sugam, is designed for resident individuals, HUFs, and firms other than LLPs with total income up to Rs 50 lakh, who have opted for the presumptive taxation scheme under sections 44AD, 44ADA, or 44AE in respect of business or professional income. This is commonly used by small traders, freelancers, and professionals such as doctors and consultants who wish to declare income on a presumptive basis rather than maintaining detailed books of account.
ITR-3 is meant for individuals and HUFs having income from business or profession that does not qualify for, or has not opted for, the presumptive scheme, including those required to maintain books of account and get them audited where applicable. Partners in a partnership firm who receive remuneration and interest from the firm also use this form.
Due Dates for Filing
The due dates for this assessment year follow the structure that has applied in recent years, linked to the category of taxpayer rather than a single uniform date. For individuals, HUFs, and other taxpayers who are not required to get their accounts audited, including most ITR-1 and ITR-2 filers, the due date to file the original return is 31st July 2026. Taxpayers filing ITR-3 or ITR-4 who have business or professional income but are not subject to audit have time until 31st August 2026. Businesses and professionals whose accounts require audit under the Income Tax Act have until 30th September 2026 to complete the audit, with the return itself due by 31st October 2026, and entities involved in international transactions requiring a transfer pricing report have until 30th November 2026. These audit and transfer pricing dates may be revised by the Central Board of Direct Taxes closer to the deadline, as has happened in some previous years, and it is advisable to confirm the position nearer the date rather than assume an extension will be granted.
Taxpayers who miss the original due date have the option of filing a belated return under section 139(4), available up to 31st December 2026, though this comes at the cost of late fees, interest, and the loss of certain benefits described below. A revised return correcting errors or omissions in an already filed return can be filed under section 139(5), and the window for this has been extended this year; rather than the earlier nine-month limit, taxpayers now have up to 31st March 2027 to file a revised return for this assessment year, though a nominal fee applies if the revision is filed after the initial nine-month period from the end of the relevant year.
Consequences of Late or Non-Filing
Filing after the due date carries financial consequences that are worth understanding before deciding to delay. A late filing fee under section 234F applies once the original due date passes, set at Rs 5,000 for taxpayers whose total income exceeds Rs 5 lakh, and Rs 1,000 where total income is Rs 5 lakh or below. In addition, interest under section 234A is charged on any unpaid tax liability for the period of delay, calculated at 1 percent per month or part of a month from the due date until the date of actual filing. Beyond the monetary cost, a taxpayer who files late loses the ability to carry forward most business losses, capital losses, and losses under the head “income from other sources” to subsequent years for set-off against future income, which can have a far larger financial impact than the late fee itself for taxpayers with substantial losses to carry forward. Refunds due to the taxpayer are also delayed, since processing of a belated return typically takes longer in the department’s systems. Persistent non-filing beyond the belated return window can expose a taxpayer to scrutiny and, in cases involving tax evasion above prescribed thresholds, to prosecution provisions under the Act, though this is reserved for serious and wilful cases rather than routine delay.
Documents and Information to Gather Before Filing
A smooth filing process depends on having the relevant documents organised in advance. For a salaried individual, this means Form 16 issued by the employer, which summarises salary paid and tax deducted during the year, along with any rent receipts if claiming HRA exemption and proof of investments made under section 80C or other deduction sections if these were not already declared to the employer. For anyone with bank interest, fixed deposit interest, or dividend income, interest certificates from banks and a consolidated account statement from depositories for dividend income are useful, though much of this is now pre-filled from third-party reporting. For those with capital gains from sale of shares, mutual funds, or property, a detailed statement of transactions including purchase date, purchase price, sale date, and sale price for each transaction is essential, since the return now requires scrip-level or transaction-level reporting in many cases rather than a consolidated figure alone.
Every taxpayer should download and review Form 26AS and the Annual Information Statement (AIS) from the income tax portal before filing. These statements consolidate tax deducted at source, tax collected at source, and various high-value transactions reported to the department by banks, registrars, mutual funds, and other entities, and any mismatch between what is reported in these statements and what is declared in the return is a common trigger for subsequent notices. Reconciling the return figures against AIS and Form 26AS before submission, rather than after receiving a query from the department, saves considerable time and correspondence later. Taxpayers with business or professional income should have their profit and loss account and balance sheet ready, along with GST returns filed during the year if registered, since figures across GST returns and the income tax return are often cross-verified.
The Filing Process in Brief
Once the correct form has been identified and the supporting information gathered, the return can be filed either through the income tax department’s own e-filing portal using the pre-filled data and online form, or through the offline utility, which allows the return to be prepared without continuous internet connectivity and then uploaded. The process broadly involves logging into the e-filing portal using PAN and password, selecting the correct assessment year and ITR form, verifying the pre-filled salary, TDS, and other income details against one’s own records, adding any income or deduction not already reflected, computing the resulting tax liability or refund, and submitting the return. Filing is not complete until the return is verified, which can be done electronically through Aadhaar OTP, net banking, or a few other prescribed methods, or physically by sending a signed ITR-V form to the department’s processing centre in Bengaluru within the prescribed time limit. An unverified return is treated as not filed at all, so this last step should never be overlooked.
A Few Practical Points Worth Keeping in Mind
Filing early in the season, rather than closer to the due date, has practical advantages beyond simply avoiding last-minute pressure. Form 26AS and AIS data are sometimes updated by reporting entities through the early part of the filing season, and waiting a few weeks after the portal opens often means working with more complete and accurate pre-filled data. It also leaves room to correct any error through a revised return well within time, and avoids the portal slowdowns that are common in the final days before the deadline. Taxpayers who anticipate any complexity in their filing, whether from capital gains, foreign assets, multiple income sources, or a change in residential status during the year, are better served consulting a chartered accountant before filing rather than after a notice is received, since the cost of correcting an error after assessment proceedings have begun is invariably higher than the cost of getting it right the first time.
Frequently Asked Questions
1. What is the last date to file ITR for FY 2025-26 (AY 2026-27)? The due date is 31st July 2026 for individuals and HUFs not requiring an audit, including most salaried taxpayers filing ITR-1 or ITR-2. Those filing ITR-3 or ITR-4 with non-audit business income have until 31st August 2026, and audit cases have until 31st October 2026.
2. Which ITR form should a salaried person in Gurgaon use? Most salaried individuals with only salary income, one house property, and interest income can use ITR-1. However, those with capital gains from stocks or mutual funds, more than one house property, or foreign assets such as ESOPs from a foreign employer must use ITR-2, which is common among professionals working in Gurgaon’s IT and corporate sector.
3. Can I file ITR after the due date? Yes, a belated return can be filed up to 31st December 2026 under section 139(4), but it attracts a late fee under section 234F, interest under section 234A on any unpaid tax, and the loss of the ability to carry forward most losses to future years.
4. Is it mandatory to file ITR if my income is below the taxable limit? Not generally, but certain conditions make filing mandatory regardless of income level, such as holding foreign assets, specified high-value transactions, or wanting to claim a TDS refund. It is also advisable to file even when not strictly required, since a filed return is often needed for loan applications, visa processing, and as proof of income.
5. What documents do I need to file my ITR this year? Commonly required documents include Form 16 from your employer, Form 26AS and the Annual Information Statement (AIS) from the income tax portal, bank interest certificates, capital gains statements from brokers or mutual fund houses, and proof of deductions claimed under sections like 80C and 80D.
6. Can I switch between the old and new tax regimes while filing? Salaried individuals can choose between the old and new tax regime afresh each year at the time of filing. Those with business or professional income can switch regimes only once, and can revert to the original regime only once thereafter.
7. What happens if there is a mismatch between my ITR and the AIS or Form 26AS? A mismatch is one of the most common reasons for receiving a notice from the Income Tax Department. It is advisable to reconcile your return figures against AIS and Form 26AS before filing, rather than after submission, to avoid follow-up correspondence and potential scrutiny.
8. Should I consult a CA in Gurgaon before filing if my return is complex? If your filing involves capital gains, foreign assets, multiple income sources, business income, or a change in residential status during the year, professional review before filing is generally worthwhile, since correcting an error after the department has raised a query is more time-consuming and costly than getting the return right the first time.
