Who files ITR-1: Salaried individuals with income up to ₹50 lakh from salary, one house property, and other sources — no capital gains, no business income. This is the most common form for freshers and salaried employees in their first job. Who files ITR-2: Salaried individuals with capital gains (mutual fund redemptions, stock sales), more than one property, or foreign income/assets. Deadline: July 31 every year — no change.

Who files ITR-3: Business owners and professionals with business or professional income. Includes freelancers, consultants, doctors, lawyers, and anyone with income from a proprietorship or partnership. Who files ITR-4 (Sugam): Small businesses and professionals using presumptive taxation schemes (income up to ₹2 crore for business, ₹75 lakh for professionals). The August 31 deadline also applies to FY2025-26 (AY2026-27) — so freelancers filing this year get this extension too.

Businesses and professionals with turnover above the audit threshold must get accounts audited by a CA before filing ITR. This deadline remains October 31 — unchanged from previous years.

If you filed your ITR and later realised you made a mistake — forgot to declare income, claimed wrong deduction, or entered wrong bank details — you can file a revised return to correct it. Also, the window was previously 9 months from the end of the financial year (i.e., December 31 under the old system, but now explicitly extended to 12 full months). Furthermore, the December 31 deadline gives you the full remainder of the Tax Year to fix errors. Also, this is especially useful in the first year of the new Act when taxpayers may make mistakes due to renumbered sections and new forms.

India's tax code gets its first complete rewrite in 64 years. Also, 536 sections, 23 chapters, plain language — same tax liability, much simpler reading. Furthermore, every section number has changed. The old Section 80C becomes Section 123. The old Section 10(14) becomes something else entirely. Also, you do not need to memorise these immediately — but tell your CA to familiarise before filing season and check any WhatsApp forwards that quote old section numbers.

Eliminates the confusing two-year terminology that stumped taxpayers for decades. Also, Tax Year 2026-27 is both the year you earn income (April 1, 2026 – March 31, 2027) and the year it is assessed. Furthermore, your Form 16 will show Tax Year 2026-27 going forward instead of Assessment Year 2027-28. Loss carry-forward: losses still carried forward for 8 Tax Years as before.

A genuine relief for freelancers, consultants, and small business owners. Also, applicable to FY2025-26 returns filed in 2026 as well. ITR-1 and ITR-2 for salaried employees remain July 31.

Previously 9 months from end of financial year — now a full 12 months, landing on December 31 of the Tax Year. Also, gives every filer a longer correction window. Furthermore, especially useful in this first year of the new Act when renumbered sections may cause confusion. Also, always file a revised return if you notice a mistake rather than leaving it — the IT department has powerful data-matching systems.

Issued by the Central Board of Direct Taxes (CBDT). Also, 333 provisions replace 511+ of the old rules. Furthermore, includes updated deduction limits, revised PAN requirements, and new reporting forms. The practical impact for most salaried employees is minimal — Form 16 will look slightly different, new ITR forms will be issued.

Earlier, amounts received from share buyback were treated as deemed dividends and taxed at your slab rate — meaning 30%+ for high earners. Also, from April 1, 2026, buyback gains are taxed as capital gains: 12.5% LTCG (if held over 12 months, above ₹1.25 lakh exemption) or 20% STCG (if held under 12 months). Furthermore, for retail investors this is often a lower tax rate. Also, for individual promoters, effective rate is ~30%. For promoter companies, ~22%.

If you bought SGBs during the original RBI issue — your maturity redemption gains are still fully exempt, no change. Also, if you bought SGBs from the secondary market (NSE/BSE) — gains on maturity are now taxed as capital gains. Furthermore, this affects investors who bought SGBs at a discount on exchanges. Also, check your SGB holding — if bought on secondary market, factor this tax treatment into your return calculations.

Under the Liberalised Remittance Scheme (LRS), money sent abroad for education purposes above ₹10 lakh previously attracted 5% TCS. Also, from April 1, 2026, this is reduced to 2%. Furthermore, for a student remitting ₹30 lakh for a US university fee, the TCS drops from ₹1 lakh to ₹40,000 — a direct cash flow saving of ₹60,000. Also, TCS is recoverable when filing ITR, but the lower rate means less money blocked upfront. This is significant for families planning study abroad for September 2026 intake.

Previously, TCS on overseas tour packages had a complex slab structure. Also, from April 1, 2026, a flat 2% TCS applies on all overseas tour package bookings regardless of amount. Furthermore, this simplifies the calculation for travel agents and travellers alike, and reduces the TCS burden on lower-value international travel packages.

The new Income Tax Act 2025 explicitly defines and includes Virtual Digital Assets — covering cryptocurrencies, NFTs, and other digital tokens — with specific provisions for taxation and reporting. Also, the 30% flat tax on VDA gains (introduced in 2022) continues unchanged. Furthermore, the new Act introduces clearer reporting requirements for VDA transactions. Also, if you trade or hold crypto, expect more formal TDS and reporting obligations in your ITR under the new framework.

The RBI's Central Bank Digital Currency — Digital Rupee — is now explicitly included in the Income Tax Act as a prescribed mode of electronic payment. Also, this gives Digital Rupee transactions the same tax treatment as UPI and NEFT payments for reporting and compliance purposes.

Eligible taxpayers can now submit Form 15G (non-senior citizens with income below exemption limit) or Form 15H (senior citizens) with depositories to reduce TDS on dividends and interest. Also, this means less TDS deducted at source for those whose total income falls below the taxable threshold. Furthermore, submit these forms at the start of the financial year — before dividends and interest are paid.

Previously, if you were buying property from an NRI seller, you needed to obtain a Tax Deduction Account Number (TAN) to deduct TDS — a bureaucratic hurdle for one-time transactions. Also, from April 1, 2026, a PAN-based challan is sufficient. This simplifies property purchases from NRIs significantly.

Minimum Alternate Tax on companies reduced from 15% to 14%. Also, no new MAT credit accumulation from Tax Year 2026-27 for companies opting for the old regime. Existing MAT credits remain available within the statutory utilisation period. This is primarily relevant to companies, not individual taxpayers.

The new tax regime is the default for all individual taxpayers and HUFs in FY2026-27 — exactly as in FY2025-26. Also, if you want to use the old regime (to claim 80C, HRA, NPS deductions etc.), you must actively inform your employer at the beginning of the financial year (now — April 2026) and select the old regime when filing your ITR. Furthermore, missing this selection means you are automatically taxed under the new regime.

Your employer needs your regime declaration to calculate TDS from April's salary. Also, if your annual package is below ₹12.75 lakh — choose the new regime and pay zero tax. Furthermore, if you have significant deductions (home loan, ₹1.5 lakh in PPF/ELSS, high HRA), compare both before deciding. Also, most freshers in first jobs with packages between ₹4–12 LPA should choose the new regime — simpler and zero tax. Submit the declaration form (your HR team will have it) before your company processes April salary.

Your first ITR covers FY2025-26 (income from April 2025 to March 2026 — the year that just ended). Also, this will be filed under the old Income Tax Act 1961 — not the new Act. Furthermore, if your employer deducted TDS (Tax Deducted at Source) from your salary, you likely have a refund coming — file ITR by July 31, 2026 to claim it. Also, ITR-1 is the correct form for most freshers with only salary income. Furthermore, use ClearTax, Tax2Win, or the income tax portal directly at incometax.gov.in — all are free for basic ITR-1 filing.

Internship stipends below ₹2.5 lakh annually are generally not taxable (below old regime basic exemption). Also, if you earned more than ₹2.5 lakh in stipends or freelance income during FY2025-26 — you should file an ITR. Furthermore, freelancers and those with business income file ITR-3 or ITR-4 — now with an August 31, 2026 deadline. Also, filing ITR even with zero tax liability builds your financial history for future loan applications. Furthermore, it is free on the income tax portal.

If your parents are remitting money above ₹10 lakh for your overseas university fees, the TCS rate drops from 5% to 2% from today. Also, for a ₹30 lakh annual fee remittance, this saves ₹90,000 in upfront TCS (the difference between 5% and 2% on ₹30 lakh). Furthermore, TCS is still recoverable when your parent files ITR — but the lower rate means less cash blocked. Also, inform your bank about this rate change when they process the transfer.

PAN is now mandatory for a wider range of financial transactions under the new rules. Also, if you do not have a PAN card, apply free at incometax.gov.in — takes 7–10 days and arrives digitally. Furthermore, you will need PAN for ITR filing, opening a demat account, transactions above ₹50,000, and bank account operations beyond basic savings. Also, link PAN with Aadhaar if you have not done so — the deadline has passed but linking is still necessary to keep PAN active.